Privacy has long been perceived as a hindrance to innovation. It has been considered to raise costs for data governance without providing real beneﬁts. However, the attitude of various stakeholders towards the relationship between privacy and innovation has started to change. Privacy is increasingly embraced as an enabler of innovation, given that consumer trust is central for realising businesses with data-driven products and services. In addition to building trust by demonstrating accountability in the processing of personal data, companies are increasingly using tools to protect privacy, for example in the context of data stora ge and archiving. More and more companies are realising that they can beneﬁt from a proactive approach to data protection. A growing number of tools for privacy protection,and the emergence of products s a nd services that are inherently privacy friendly indicate that the market is about to change. In this paper, we ﬁrst outline what “privacy as enabler of innovation” means and then present evidence for this position. Key challenges that need to be overcome on the way towards successful privacy markets include the lack of proﬁtability of privacy-friendly offerings, conﬂicts with new and existing business models, low value attached to privacy by individuals, latent cultural speciﬁcities, skill gaps and regulatory loopholes.