The APAC homomorphic encryption market is expected to grow from US$ 26.17 million in 2019 to US$ 59.85 million by 2027; it is estimated to grow at a CAGR of 11.2 % from 2020 to 2027.
Amalgamation of homomorphic encryption techniques with advanced technologies is expected to accelerate the growth of the APAC homomorphic encryption market during the forecast period. Moreover, increasing computing capabilities of systems and ever increasing amount of data generation are driving the adoption of artificial intelligence (AI) and machine learning (ML). AI and ML require tremendous amount of data to thrive on in order to formulate results and conclusion. The data required by AI and ML needs to be decrypted first to process it. With the rising concerns over data privacy and data breach and increasing government initiatives across APAC for securing consumer data, the homomorphic encryption technology is anticipated to play a vital role in the coming years. The integration of homomorphic encryption in AI and ML is anticipated to address the issue of data privacy. In order to churn resourceful insights while keeping privacy concern in check, the integration of homomorphic encryption technology and AI and ML is anticipated to pave a way across APAC, which would drive the growth of the APAC homomorphic encryption market during forecast period.
Countries in APAC are adversely affected by the COVID-19 outbreak, especially China and India. China initiated strict lockdown to control the spread of the virus, and after that the whole APAC experienced the strong impact on the market. Offices, industries, and schools are shut, which is hindering the market growth. Although, market regained its momentum post lockdown as digitalization ratio increased in all regions to perform business remotely, which has accelerated the APAC homomorphic encryption market. APAC comprises emerging countries such as China and India, which are shifting their business models toward the digitalization. Countries such as Japan and South Korea have the strong penetration of advanced technologies such as AI, IoT, and automation. The software industry is enchaining the market presence with solutions such as block chains, cloud computing, and others. Homomorphic encryption solution becomes the emerging trend in the digital market to enhance the security level for the businesses by securing the data transmission. China is holding the leading position in APAC homomorphic encryption market as business are adopting the digital technologies. For instance, according to the Entrust Corporation Encryption Trends Study, almost 60% are continuously adopting encryption strategy, while 72% stated that customer personal information protection is main objective behind encryption adoption strategy. Rising adoption of encryption techniques for more safety of data is driving the APAC homomorphic encryption market even during the pandemic.
Based on type, the APAC homomorphic encryption market for partially segment is expected to grow faster during the forecast period. Partially homomorphic encryption helps sensitive data to remain private by merely enabling select mathematical functions to be implemented on encrypted values, which denotes that only one operation, multiplication or addition, can be performed limitless (i.e., no bound on the number of usages) on the cipher text. It supports function on cipher texts but does not support arbitrary computation on cipher texts. A few of the significant applications of this type are electronic voting, data mining, and voice or image processing. In data mining, it offers a way to calculate simple statistic computations such as variance, mean, and linear regressions. In an electronic voting application, it offers a tool to calculate the tally from the encrypted votes without decrypting the individual votes; only the result is decrypted. Additionally, voice or image processing can be performed proficiently using partially homomorphic encryption. Thus, growing applications of partially segment in electronic voting, data mining, and image processing are escalating its demand, which is driving the APAC homomorphic encryption market.
The overall APAC 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 APAC 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 APAC homomorphic encryption market. Google LLC; IBM Corporation; Inpher, Inc.; Microsoft Corporation; Netskope, Inc.; and Thales Group are among the players operating in the market.