The SAM homomorphic encryption market is expected to grow from US$ 3.74 million in 2019 to US$ 6.16 million by 2027; it is estimated to grow at a CAGR of 6.8 % from 2020 to 2027.
Escalation in deployment of cloud computing is expected to escalate the growth of the SAM homomorphic encryption market during the forecast period. Moreover, with to the emergence of cloud computing, the on-premises networking is phasing out. Owing to numerous benefits of cloud computing—such as cost, flexibility, scalability, mobility, disaster recovery, and loss prevention—coupled with decreasing cost of cloud computing, organizations across SAM are rapidly adopting cloud computing. However, mitigating database over the cloud has been always been a matter of concern. Although, encrypting data is considered a viable option but still exposed to risk while computing, as the data has to be decrypted first. Homomorphic encryption enables organizations to compute the data while always keeping the data encrypted. It allows users to run complex and large calculations without compromising the data security. Due to increase in the deployment of cloud computation across SAM and rise in the need for secure cloud computing, the demand of homomorphic encryption is increasing, which is driving the SAM homomorphic encryption market.
Countries in SAM are adversely affected by the COVID-19 outbreak, especially Brazil. Also, Brazil and Argentina are transforming their business operations in digital platform through cloud computation to face the challenges emerged due to the COVID-19 crisis. The social isolation is bolstering e-commerce in SAM; similarly, it is creating considerable growth in all business sectors. The adoption ratio of digital technologies such as Artificial Intelligence (AI), Automation, cloud platform, and other is low in region which resulted in the slower growth of the SAM homomorphic encryption market. The pandemic propelled the importance of digital technologies in region, which has created strong opportunity for the market to enhance its presence. The adoption and penetration of advanced encryption technologies is started to increase in countries such as Brazil and Argentina, which is expected to drive the SAM homomorphic encryption market during forecast period. The COVID-19 outbreak is enhancing the importance of digital technologies and supportive tools for the security and reality. Major companies, such as IBM, are also investing in the region owing to the potential available for advanced technologies. For instance, Banco Bradesco, S.A., a Brazilian financial institution and IBM Research formed partnership to integrate techniques such as homomorphic encryption to banking data. The pandemic is providing the push for the region to adopt new digital technologies and supporting tools to enhance services for end users.
Based on application, the BFSI segment dominated the SAM 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, which enables the bank to take the benefits 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 various benefits of this technology, various financial institutes in SAM are using it. Advantages of homomorphic encryption such as better data computation, detailed report generation, and more safety and security of data are increasing its demand from the BFSI sector, which is driving the growth of the SAM homomorphic encryption market.
The overall SAM 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 SAM 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 SAM homomorphic encryption market. Google LLC; IBM Corporation; Inpher, Inc.; Microsoft Corporation; Netskope, Inc.; and Thales Group are among the players operating in the market.