Homomorphic Encryption Market Research Report - Global Forecast till 2030

Impact of COVID-19 on the Global Homomorphic Encryption Market

COVID-19 has spread across the world. The declaration of COVID-19 as a pandemic in March 2020 by the world health organization has drastically impacted businesses worldwide. The governments of various countries have imposed lockdowns and forced people to stay at home. The increasing number of people staying at home has boosted the use of digital transactions through mobile devices for bill payments, recharges, and online shopping to prevent the spread of the pandemic. During these transactions, people share their personal information on a third-party forum, which increases the issue of the privacy of personal data. The security of data becomes an essential factor. Here, homomorphic encryption plays a vital role. Homomorphic encryption is a form of encryption that helps to perform computations via ciphertext to produce an encrypted result. On the flip side, the lockdowns in various countries have halted manufacturing plants and delayed production activities. The primary factor driving the growth of the market is the increasing usage of smartphones and mobility solutions. However, the COVID-19 pandemic has delayed the production and, thus, the sales of smartphones, which is hampering the growth of the market.

Homomorphic encryption is widely implemented in the banking and finance sector, which is expected to drive the growth of the market. According to MRF analysis, the North American region dominated the market owing to the increasing number of SMEs, rising investments in the private sector, and stable growth rate, among other factors. However, SMEs are facing tremendous revenue losses, owing to which, the market is expected to face challenges after the COVID-19 pandemic. The increasing need for the security of personal data across the globe is expected to drive the growth of the market over the forecast period.