Industry: IT and Telecommunication
Published Date: December-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 190
Report ID: PMRREP35000
The global secure multiparty computation (SMPC) market is predicted to reach a value of US$ 0.9 Bn by 2024. It is anticipated to experience a CAGR of 9% during the assessment period to reach a size of US$ 1.7 Bn by 2031. SMPC is steadily moving from the early adoption phase to the growth stage as organizations worldwide recognize its value in enabling secure and collaborative computations without compromising on data privacy.
Regulations like GDPR (EU) and CCPA (California) are enforcing stringent data protection measures, thereby encouraging the adoption of SMPC. Over 50% of global enterprises are expected to comply with privacy laws that mandate secure data handling by 2030.
By the end of the assessment period, the SMPC market is anticipated to significantly contribute to the broader US$ 60 billion privacy-preserving computation market that includes technologies like federated learning and homomorphic encryption.
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Key Highlights of the Industry
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Market Attributes |
Key Insights |
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Secure Multiparty Computation (SMPC) Market Size (2024E) |
US$ 0.9 Bn |
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Projected Market Value (2031F) |
US$ 1.7 Bn |
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Global Market Growth Rate (CAGR 2024 to 2031) |
9% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
5.6% |
The secure multiparty computation (SMPC) market in North America is predicted to hold a market share of 40% in 2024. The region has stringent data privacy regulations, like the California Consumer Privacy Act (CCPA) in California that set high standards for data protection. These regulations are pushing organizations to adopt privacy-preserving technologies like SMPC to ensure compliance, thereby driving growth in the region.
North America has a well-established digital infrastructure with prominent tech hubs like Silicon Valley and Boston that facilitate innovation in cybersecurity and cryptography. Research institutions and universities including MIT, UC Berkeley, and Stanford are at the forefront of SMPC related research and development, thereby fueling the adoption and advancements of the technology.
Companies in the financial services and health sectors in the region have been the early adopters of SMPC to address privacy concerns while collaborating on sensitive data. Awareness regarding data privacy and adoption of advanced cryptographic techniques in these industries contribute to the share of the region.
North America is home to prominent venture capital firms that actively invest in privacy technologies including SMPC. Leading companies like IBM, Google, Microsoft, and IBM are actively investing in privacy-enhancing technologies, including SMPC. Tech giants in the region are developing and deploying advanced cryptographic tools that integrate SMPC for secure data sharing and privacy-preserving computations.
Europe secure multiparty computation is predicted to hold a share of 28% in 2024. This growth is highly attributed to the region’s strong regulatory frameworks and increased awareness regarding the importance of privacy preserving technologies. The General Data Protection Regulation (GDPR), enforced since 2018, has had a profound impact on the demand for secure computing technologies like SMPC.
European Union’s Digital Strategy and the Data Governance Act play a vital role in shaping the future of privacy-preserving technologies in the region. Countries in Europe emphasize data sovereignty and SMPC is therefore gaining traction in protecting data while allowing cross-border data analysis without violating local laws.
SMPC solutions offer concrete use cases in several sectors like healthcare, finance, government, and retail. This segment is estimated to hold a share of 66% in 2024. Their flexibility enables secure computation for tasks like fraud detection, risk analysis, and data sharing with exposing sensitive data. The global finance sector alone is predicted to invest US$ 2.1 billion in privacy-preserving technologies by 2025.
A large portion of this is predicted to be allocated to SMPC solutions for secure financial computations and collaborative fraud detection. By 2023, 45% of enterprises across the globe are estimated to adopt privacy-preserving solutions like SMPC to ensure compliance with privacy regulations.
The market is witnessing the emergence of several SMPC-as-a-Service offerings, thereby providing businesses with easy access to SMPC technology without the need to invest in specialized expertise or infrastructure.
Cloud platforms provide the scalability required for large-scale SMPC implementations. Increase in the volume of data along with the complexities of computation is facilitating cloud-based SMPC deployments to quickly scale up or down without the need for any major capital investments.
Amazon Web Services (AWS), in 2023, reported its SMPC-enabled services for secure data processing had scaled to accommodate billions of computations for clients in several sectors. Cloud deployment decreased the need for organizations to maintain expensive on-premises infrastructure and specialized hardware.
Based on a study conducted in 2023, cloud-based solutions for secure computation were 30% more cost-effective compared to on-premises alternatives, especially for smaller businesses that cannot afford large-scale infrastructure investments.
Potential growth in the global secure multiparty computation (SMPC) industry is predicted to be driven by the rise of hybrid privacy solutions that combine SMPC with other privacy-preserving techniques. These techniques include homomorphic encryption and differential privacy to enhance efficiency.
SMPC’s are predicted to support privacy-preserving AI and federated learning, thereby enabling secure model training across decentralized datasets. Secure multiparty computation is projected to integrate with post-quantum cryptographic algorithms to remain secure against quantum computing threats.
Fraud detection, secure cross-border transactions, and risk assessments are likely to remain significant use cases of SMPC in the finance industry. IoT and edge computing are estimated to adopt SMPC to ensure privacy for decentralized and edge computing environments. The healthcare sector is predicted to use SMPC for data sharing of personalized medicine as well as for collaborative research.
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The secure multiparty computation (SMPC) market growth was robust at a CAGR of 5.6% during the historical period. Growth in the market was primarily driven by research initiatives and pilot projects in academia. Regulatory pressures, advancements in cryptographic techniques, and an increasing awareness of data privacy further fueled demand.
Laws including GDPR, CCPA, and HIPAA pushed organizations to adopt privacy-preserving technologies like SMPC to ensure compliance. A spike in global data breaches highlighted the need for secure computation frameworks, thereby resulting in increased adoption of SMPC.
Enhancements in SMPC protocols decreased computational overhead and communication latency, thereby making implementations practical for enterprises. Renowned frameworks like PySyft (OpenMined) and SEAL (Microsoft research) gained prominence during the period.
Rising Demand for Privacy-Pressing Solutions
According to Cisco 2023 Consumer Privacy Survey, almost 84% of consumers care about data privacy while 48% of them have switched companies over privacy concerns. The global average cost of data breach reached US$ 4.45 million in 2023, according to the IBM’s 2023 Cost of Data Breach Report. Industries handling sensitive data like retail and finance are specifically vulnerable, thereby driving the demand for robust privacy solutions.
Privacy laws like GDPR, CCPA, and HIPAA require stringent data protection practices. The global fines GDPR violations in 2022, exceeded €2.92 billion, highlighting the financial risks of non-compliance. SMPC addresses key privacy challenges by enabling computations on encrypted data, thereby ensuring that raw data remains confidential. Global data creation is predicted to reach 181 zettabytes by 2025. More data increases the risks and the need for privacy-preserving technologies. A Gartner survey in 2023 found that 40% of enterprises plan to invest in privacy-preserving technologies in the next two years.
SMPC for Decentralized Systems to Accelerate Adoption
By eradicating the need for a trusted third party, SMPC aligns with the decentralized ethos, thereby enabling secure data sharing and computation even in trust less environments. SMPC facilitates seamless collaboration between decentralized systems without compromising on data security, ensuring compatibility across various platforms and protocols.
SMPC can improve blockchain by allowing private transactions and computations. It ensures the execution of smart contracts remains confidential, thereby revealing only the agreed-upon output to participants. SMPC also allows off-chain computations for scalability while maintaining privacy.
Secure multiparty computation ensures secure and private computation for DeFi platforms. DeFi’s total value locked (TVL) reached US$ 70 billion as of mid-2023, with privacy-preserving solutions being a priority for institutional adoption.
High Computational and Communication Costs to Emerge as Major Restraining Factor
SMPC requires encryption, decryption, and secure function evaluation that are significantly computationally demanding that standards computation. Protocols like Yao’s Garbled Circuits or Shamir’s Secret Sharing involves numerous cryptographic operations that increase processing times.
A study published in the Journal of Cryptographic Engineering in 2023 showcased that secure computations using SMPC could take 3x to 10x longer compared to the non-secure counterparts, depending on protocol and dataset.
SMPC protocols rely on frequent communication between participating parties to securely compute results. This requirement for multiple rounds of message exchange to maintain data privacy ca result in increased network latency.
Real-time systems like financial trading platforms, live analytics, or IoT networks face challenges due to delays introduced by SMPC. High latency decreases the feasibility of SMPC in applications that require instantaneous responses.
Post-quantum Cryptography to Boost Expansion
Quantum computers running Shor’s algorithm can efficiently break the widely used public-key cryptosystems like RSA, ECC, and DH. This threat can render the current encryption methos insecure, thereby risking sensitive data encrypted today being decrypted in the future once quantum computers become powerful enough. A survey conducted in 2021 from the Global Risk Institute reports that 50% of cybersecurity professionals believe quantum computing could break current encryption within the next decade.
Adversaries may be collecting encrypted data with the intention of decrypting it later, once quantum capabilities mature. This is popularly known as “store now, decrypt later” approach. The National Institute of Standards and Technology (NIST) has finalized the first set of post-quantum cryptographic standards in July 2022.
Algorithms like Dilithium and Kyber have been selected as primary candidates for public-key encryption. Nearly 70% of organizations recognize the importance of preparing for quantum risks while 45% of companies have already started incorporating quantum-safe technologies in their long-term strategies.
Stringent Data Privacy Regulations to Boost Integration
Rise in imposition of stringent data privacy regulations worldwide has created a favourable environment for the adoption of Secure Multiparty Computation (SMPC) technologies. Global regulatory frameworks like the General Data Protection Regulation (GDPR), enforced in the European Union (EU) since May 2018, imposes fines of €20 million or 4% of global annual revenue for non-compliance.
IBMs 2023 Cost of a Data Breach Report revealed that 78% of businesses states that regulatory compliance decreases the cost of data breaches. SMPC meets regulatory requirements by ensuring sensitive data is never exposed in raw form during computations, thereby aligning with GDPR’s privacy-by-design principles. It also enables secure collaborative analytics without sharing raw data, thereby mitigating the risk of non-compliance in industries like healthcare and finance.
Companies in the secure multiparty computation (SMPC) market are developing efficient protocols to decrease computation and communication overhead, improving scalability and speed. They are combining SMPC with technologies like blockchain, differential privacy, and federated learning to provide comprehensive solutions. They are tailoring SMPC frameworks to cater to industry specific requirements like healthcare, advertising, and finance.
Businesses are progressively partnering with academic institutions to drive cutting-edge research and develop new cryptographic techniques. They are collaborating with organizations in various industries to embed SMPC in existing workflows like fraud detection and supply chain analytics. Companies are participating in or leading open-source projects to build community trust and accelerate adoption.
Recent Industry Developments
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Market Segments Covered |
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Key Companies Profiled in the Report |
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Report Coverage |
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Customization and Pricing |
Available upon request |
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The market is anticipated to reach a size of US$ 1.7 Bn by 2031.
SMC is a cryptographic protocol that distributes a computation across multiple parties where no individual party can see the data of other parties.
It uses encryption a secret sharing to ensure privacy and security during the computation process, thereby enabling multiple parties to jointly compute a function using private data.
SMC finds applications in BFSI, healthcare, and government.
Some of the prominent companies operating in the market are Microsoft Corporation, IBM Corporation, and Google LLC.
