Confidential Computing Market Size by Component Type

Confidential Computing is still very much in its early days, with its market size expected to expand more than 13X between 2025 and 2032, reaching a US$162 billion value by the end of our forecast. Software and services is and will continue to contribute the bulk of revenue generation in the confidential computing market.

Factors Driving the Confidential Computing Market

From 2024 to 2026, Confidential Computing is expected to face technical challenges and high setup costs despite early standardization efforts like the IETF's RATS in 2023, with software leading revenue due to its role in broadening CC accessibility, while GPU-based confidential computing advancements and AI hype retrigger market interest by 2026.

Between 2027 and 2029, software and services revenue will outpace hardware as confidential computing hardware gradually becomes widespread. Legal mandates will solidify standards, and the looming 2030 deadline for quantum-resistant algorithms drives demand for confidential computing in hybrid and multi-cloud environments.

From 2030 onward, confidential computing adoption grows at a 44% CAGR through 2032, with reduced setup friction, increased awareness, and advanced features stimulating the market across industries, though it won’t yet be ubiquitous.