Confidential Computing Market Size to Reach USD 184.5 Billion by 2032, Claims Allied Market Research

The growth of the global market is driven by surge in need to comply with regulatory standards, growing concerns regarding data security and privacy.

WILMINGTON, DELAWARE, UNITED STATES, June 25, 2025 /EINPresswire.com/ -- Surge in need to comply with regulatory standards, growing concerns regarding data security and privacy, and increasing need for secure cloud computing primarily drive the growth of the confidential computing market. However, implementation and integration challenges hamper market growth to some extent. Moreover, the increasing need for secure AI solutions is expected to provide lucrative opportunities for market growth during the forecast period.

Confidential computing is a cloud computing technology that encrypts and stores sensitive data of an organization in a secure portion of a computer's processor. In addition, it can also be used to protect proprietary business logic, analytics functions, MI algorithms, or entire applications.

According to the report, the global confidential computing market size generated $4.1 billion in 2022, and is estimated to reach $184.5 billion by 2032, witnessing a CAGR of 46.8% from 2023 to 2032.

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Based on component, the software segment held the highest market share in 2022, accounting for more than three-fifths of the confidential computing market revenue and is estimated to maintain its leadership status throughout the forecast period, owing to protect their data, especially during processing or when sharing it with outside parties, due to the surge in sophisticated cyberattacks and data breaches. However, the hardware segment is projected to manifest the highest CAGR of 49.6% from 2023 to 2032, owing to enormous volumes of sensitive data as a result of the development of digital technology and the emergence of data-driven decision-making.

Based on region, the North America segment held the highest market share in terms of revenue in 2022, accounting for nearly two-fifths of the Confidential Computing market revenue, owing to increasing digitization of businesses and the proliferation of sensitive data requires protecting this data from unauthorized access, even from cloud providers themselves. The Asia-Pacific region is expected to witness the fastest CAGR of 51.6% from 2023 to 2032, owing to the adaption of smart technologies such as AI, ML and virtual machines escalates the demand for confidential computing.

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Based on the end user, the BFSI segment accounted for the largest share in 2022, owing to benefit that financial information is handled with the highest care and security, which helps to increase customer trust and confidence. However, the retail and e-commerce segment is expected to portray the largest CAGR of 52.8% from 2023 to 2032 and is projected to maintain its lead position during the forecast period, owing to the growing reliance on digital platforms and the acquisition of enormous volumes of client data.

Based on deployment mode, the on-premise segment held the highest market share in 2022, accounting for more than three-fifths of the confidential computing market revenue and is estimated to maintain its leadership status throughout the forecast period, owing to data privacy, satisfies compliance and regulatory standards, and protects against insider threats within the company. However, the cloud segment is projected to manifest the highest CAGR of 49.7% from 2023 to 2032, owing to hardware-based security capabilities such as Intel SGX (Software Guard Extensions) and AMD SEV (Secure Encrypted Virtualization). These secure enclaves offer separated, encrypted settings for the safe processing of sensitive data and calculations.

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The key players profiled in the confidential computing industry analysis are Advanced Micro Devices, Inc., Amazon Web Services, Inc., Alibaba Cloud, Cyxtera Technologies Inc., Fortanix, Google LLC, Intel Corporation, International Business Machines Corporation, Microsoft Corporation and Ovh SAS. These players have adopted various strategies to increase their market penetration and strengthen their position in the confidential computing industry.

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