Embedded Security Market - By Offering (Hardware, Software, Services), By Security Type (Authentication & Access Management, Payment, Content Protection), By End Use (Automotive, Healthcare, Consumer Electronics, Telecommunications, A&D) & Forecast, 2023 – 2032
Published Date: March - 2025 | Publisher: MIR | No of Pages: 240 | Industry: Media and IT | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationEmbedded Security Market Size
Embedded Security Market was worth USD 6.8 billion in 2022 and is expected to grow at a CAGR of more than 6% during the period 2023-2032. As cyber threats increase and high-profile data breaches occur, organizations are focusing more on securing their systems and sensitive information, driving the growth of the global market.
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Embedded security solutions are becoming a necessity for protection against these emerging threats, offering strong defenses at both the hardware and software levels. With cyber threats becoming more complex and widespread, organizations are making it a priority to secure their systems and confidential data. Embedded security solutions, with their capability to offer multi-layered defense mechanisms at both the hardware & software levels, are being viewed more and more as a necessity. This increased awareness, combined with regulatory pressure, is driving the embedded security market as companies in diverse industries look for integrated solutions to secure against data breaches and unauthorized access.
Embedded security is a multidisciplinary way of protecting electronic systems and devices from threats of all kinds. It refers to the integration of security features and protocols into hardware & software elements. These controls cover encryption, access control, secure boot procedures, and vulnerability analysis that help in safeguarding against unauthorized access, data theft, and tampering. Embedded security is of primary importance in segments like IoT, automotive & critical infrastructure since it strengthens the security and dependability of connected products, thus protecting the confidentiality, integrity & availability of sensitive data and critical processes.
| Report Attribute | Details |
|---|---|
| Base Year | 2022 |
| Embedded Security Market Size in 2022 | USD 6 Billion |
| Forecast Period | 2022 to 2032 |
| Forecast Period 2022 to 2032 CAGR | 6% |
| 2032 Value Projection | USD 12 Billion |
| Historical Data for | 2018 – 2022 |
| No. of Pages | 200 |
| Tables, Charts & Figures | 290 |
| Segments covered | Offering, Security Type, and End Use |
| Growth Drivers |
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| Pitfalls & Challenges |
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What are the growth opportunities in this market?
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The embedded systems can be a significant stumbling block for the growth of the embedded security market. Incorporating robust protective features into complex systems can also be beyond the requirement of specialized skills and resources. For smaller teams, such complexity can prove to be expense-inhibiting and can leave them exposed to cyber attacks. Retrofitting existing systems with security features can also be technically challenging. Balancing usability and safety in complex structures is also a market barrier since excessively complex security elements interfere with consumer safety as well. Overcoming those complexities is essential to provide a boost to market growth.
COVID-19 Impact
The COVID-19 pandemic first disrupted digital transformation & budgets, which slowed down the adoption of embedded security solutions in certain sectors. The economic uncertainty put a squeeze on security investments' budgets. In addition, there was heightened awareness of the risk of cybersecurity due to remote work and digitalization acceleration. This element fueled the demand for embedded security solutions in industries such as healthcare and IoT where data protection was essential.
Embedded Security Market Trends
The embedded security market is observing some prominent trends. With the growth of IoT devices, there is a strong need for comprehensive security solutions to safeguard interconnected networks. AI & ML technologies are being used to integrate into embedded security solutions to detect & respond to threats in real-time. Hardware-based security solutions are also gaining popularity to secure devices from physical attacks.
Cloud integration plays a vital role in providing data privacy & integrity for cloud-connected devices. Automotive security becomes increasingly important with the increasing use of connected & autonomous vehicles. The deployment of 5G networks is necessitating security updates on embedded devices to enable high-speed & low-latency connectivity. Moreover, regulatory compliances are necessitating the use of embedded security solutions across different industries for regulatory compliance.
Embedded Security Market Analysis
Find out more about the dominant segments driving this market
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On the basis of end use, the market is divided into automotive, healthcare, consumer electronics, telecommunications, aerospace & defense, and others. The automotive segment is anticipated to hold a CAGR of more than 5.5% during the forecast period.
The automotive market within the embedded security space is expanding because of the increased deployment of connected & autonomous features in the vehicle. With vehicles becoming more connected & autonomous, there will be an expanding need for solid security protocols. Solid & embedded security is necessary to safeguard important vehicle systems & data, creating very high demand for security solutions in the automotive sector.
Regulatory requirements are pushing car makers to incorporate security features to safeguard sensitive information and guarantee passenger safety.
With the increasing use of connected cars and autonomous vehicles, the need for embedded security solutions in the automotive industry is anticipated to grow at a very fast pace to guarantee the security & integrity of these advanced and digitally operated systems.
Discover more about the major segments determining this market
By security type, the market is divided into content protection, payment, and authentication & access management. In 2022, the payment segment led the global market with a revenue share of more than 50%.
The payment segment is experiencing robust growth, which is primarily driven by the increasing demand for secure digital payment solutions. With the rise of online transactions, mobile payments, and contactless payment methods, both consumers & businesses alike are increasingly being reliant on secure financial transactions.
The growth of contactless payment methods, particularly during the COVID-19 pandemic, has accelerated the need for secure embedded solutions.
Embedded security technologies, including secure elements in point-of-sale and smartphones & hardware security modules, are instrumental in securing sensitive payment information, avert fraud, and maintaining financial transaction integrity.
Biometric authentication mechanisms' incorporation bolsters payments' security, hence promoting the use of embedded security.
As the payment environment keeps changing, the demand for sophisticated & embedded security solutions will increase, and hence this segment will be a strong driver of market growth.
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Asia Pacific was the embedded security industry's rock star in 2022, holding more than 30% of the market share. This area is a technology hotbed that's burning bright, with numerous IoT devices and smart gadgets springing up. Nations such as China and India are investing heavily in smart cities, autonomous vehicles, and robots for factories, all of which require cybersecurity. And with mobile payments and internet banking gaining traction, particularly in China, there's a massive need for secure means to pay and handle cash. With Asia Pacific continuing to warm up to technology, its embedded security market will continue to grow like a beanstalk!
Embedded Security Market Share
The embedded security industry is highly competitive owing to the presence of key players such as
- Infineon Technologies
- STMicroelectronics
- NXP Semiconductors
- Qualcomm
- Thales Group
- Microchip Technology
- Texas Instruments
These market players are adopting strategic initiatives including mergers & acquisitions, product offerings, technological advancements, innovations, and geographical expansion to gain significant market share & a competitive edge.
Embedded Security Industry News
- In March 2023, IAR launched the IAR Embedded Trust, which is a robust end-to-end security workflow for the embedded industry. With this latest release, IAR delivered its promise of “Security Made Simple” by helping customers quickly & easily manage, prioritize, and mitigate potential security problems.
The embedded security market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments
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By Offering
- Hardware
- Secure element
- Embedded SIM
- Trusted platform
- Hardware security modules
- Hardware token
- Software
- Services
By Security Type
- Authentication & access management
- Payment
- Content protection
By End Use
- Automotive
- Healthcare
- Consumer electronics
- Telecommunications
- Aerospace & defense
- Others
The above information is provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- South Korea
- ANZ
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- MEA
- GCC
- South Africa
- Rest of MEA
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