The Europe homomorphic encryption market is expected to grow from US$ 31.99 million in 2019 to US$ 66.50 million by 2027; it is estimated to grow at a CAGR of 9.9 % from 2020 to 2027.
Increase in the need for data security is escalating the growth of the Europe homomorphic encryption market. Increase in number of cyberattacks across Europe has become a vital concern for organizations. As most digital data is shifted through the internet and advanced networks, the danger of data vulnerability has increased rapidly. The government, financial services, and IT sector are a few of the prominent industries vulnerable to cyber threats. These industries face tough challenges concerning their data security and vulnerability as they have to deal with storing, migrating, shifting, and outsourcing their user data on open source platforms many times. Therefore, in order to mitigate risk regarding data security while at rest, transmitting, or computing, the homomorphic encryption is gaining traction in various industries across Europe. The utilization of homomorphic encryption technology is enabling organizations to maintain a robust standard of data security without compromising business operations or application functions. Moreover, owing to increasing concerns over the collection, misuse, transfer or handling of data by businesses and institutions, the governments across the Europe are strongly emphasizing on consumer data protection, which is further propelling the adoption of homomorphic encryption technology. Thus, growing concern over data security and increasing need for consumer data protection across Europe are propelling the Europe homomorphic encryption market.
Countries in Europe are adversely affected due to the COVID-19 outbreak, especially the UK and Russia. Also, huge number of COVID-19 cases is observed in other European countries such as Germany, France, and Spain, which had a major impact on the region’s economy and financial structure. Though several geographies are gradually ending lockdowns, which highlighted the importance of digitalization. The businesses, hospitals, and other government services across Europe have started to adopt digital platforms having assured security features. Nevertheless, the financial industry services across Europe are adopting advanced encryption technologies to offer customer secured e-services. The adoption of homomorphic encryption in different industries is escalating the growth of the Europe homomorphic encryption market. Business operations have been changed and diverted toward cloud platform; therefore, the demand for advanced security solutions is rising, which is driving the growth of the Europe homomorphic encryption market. Companies and government agencies also adopted the digital solutions, which resulted in growth of homomorphic encryption market. For instance, in May 2020, the National Health Service (NHS) introduced Bluetooth-enabled COVID-19 contact-tracing smartphone app. The app is developed using homomorphic encryption techniques used for the contact tracing application. Such developments in the solution offerings offer lucrative opportunities for the Europe homomorphic encryption market.
Based on application, the BFSI segment led the Europe homomorphic encryption market in 2019. In order to manage the privacy and confidentiality of the database of bank accounts stored in the cloud, cloud providers incorporate homomorphic encryption in their security solutions that enables the bank to take the benefit of cloud computing. Cloud technology has brought a huge enhancement into the data storage in the cloud. Organizations and individuals find this technology relevant to their daily use. Nevertheless, the insecurity of data during the computation of information has been an issue. In this case, the homomorphic encryption technology plays an important role in a secured cloud computing. Homomorphic encryption provides the process for predictive modeling of customer behavior without decrypting their private data. BFSI requires statistical analysis of customers for the most part for reasons, such as customer identification or loan application. With homomorphic encryption technology, bank management can generate a detailed report without compromising the privacy of the customers’ data. Due to the numerous benefits of this technology, various financial institutes around Europe are using it. The ML is frequently used in the BFSI industry across the region to predict a few scenarios, such as investment outcomes or transaction fraud. A few advantages of homomorphic encryption in the BFSI sector such as scenario prediction, high security of transaction, and generation of detailed report are generating its demand, which is driving the growth of the Europe homomorphic encryption market.
The overall Europe homomorphic encryption market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the Europe homomorphic encryption market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, homomorphic encryption market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the Europe homomorphic encryption market. Cosmian; CryptoExperts SAS; Google LLC; IBM Corporation; Inpher, Inc.; Microsoft Corporation; Netskope, Inc.; Thales Group; and ZAMA are among the players operating in the market