Hardware Security Module (HSM) Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028, Segmented By Type (LAN Based/Network Attached, PCI-Based/Embedded Plugins, USB-Based/Portable, Smart Cards), By Deployment Mode (On-premise, Cloud), By Application (Payment Processing, Code & Document Signing, Authentication, Application-Level Encryption, Database Encryption, PKI & Cr
Published Date: November - 2024 | Publisher: MIR | No of Pages: 320 | Industry: ICT | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationHardware Security Module (HSM) Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028, Segmented By Type (LAN Based/Network Attached, PCI-Based/Embedded Plugins, USB-Based/Portable, Smart Cards), By Deployment Mode (On-premise, Cloud), By Application (Payment Processing, Code & Document Signing, Authentication, Application-Level Encryption, Database Encryption, PKI & Cr
| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 0.89 Billion |
| Largest Market | North America |
| CAGR (2023-2028) | 11.38% |
| Fastest Growing Segment | Manufacturing |
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Furthermore, the rising uptake of encryption technologies among organizations is aiding the global hardware security module (HSM) market substantially. To maintain high speeds and maximize connectivity, businesses are increasingly considering more reliable and secure hardware security modules to encrypt and decrypt data. Numerous innovations conducted in cloud computing and 5G infrastructure technologies are expected to enhance the features of HSMs. This, in turn, is expected to drive the market during the forecast period.
A hardware security module (HSM) is a specialized device that conducts cryptographic functions, such as encrypting data or managing encryption keys. The growing usage of mobile banking applications and the increasing uptake of HSMs in fintech enterprises, thanks to rising digitalization, IoT trends, and the increasing need to simplify banking procedures, have led to a surge in their demand. HSMs are the cornerstone of enterprise data security. Hardware security modules' tamper resistance helps keep IT infrastructure secure from hacks and breaches while reducing the enormous expenses those disasters might cause for commercial organizations. Moreover, the rising demand for data security and the increasing number of cloud-based solutions are expected to boost the global hardware security module (HSM) market further in the near future.
Furthermore, hardware security modules are gaining popularity as businesses are facilitating critical applications to manage infrastructure with load balancing, monitoring, alerting, device clustering, and generating digital signatures to validate messages, software, and financial transactions. Hardware security modules also provide and protect sensitive data and improve application performance, and secure mobile payments, or a government organization that must protect the personally identifiable information (PII) of private citizens. The use of hardware security modules enables organizations to meet and exceed established and emerging regulatory standards for cybersecurity, including GDPR, eIDAS, PCI DSS, and HIPAA.
Increasing Demand for Hardware Security Modules for Network Privacy and Visibility Support
The current surge of digital innovation, remote work, and cloud usage has increased the demand for hardware security modules (HSM) with security, which has caused businesses to reevaluate their network architecture. HSMs are becoming increasingly popular among organizations that are eager to embrace digital transformation. Network security providers and IT enterprises are enabling HSMs to provide cryptographic keys for critical functions, such as encryption, decryption, and authentication, for the use of applications, identities, and databases.
Furthermore, hardware security modules help with physical access protection and secure management of key materials, give the IT department extensive access to the hardened, enable tamper-resistant hardware devices, and make it possible to immediately identify a security assault. Therefore, the increasing demand for hardware security modules for network privacy and visibility support for sensitive data is expected to propel the hardware security module (HSM) market across the world.
Increasing Number of Cyberattacks and Data Breaches Driving Growth
Data breaches and cyberattacks are becoming more frequent, putting personal information of millions of people at risk, which increases the need to address the alarmingly rising security concerns. Data breaches have had the most severe impact in the world of cyber security in the last few years. With the surge in incidents of data security theft, there is a rise in the uptake rate of hardware security modules (HSM) across a number of industries globally. According to ITGovernance UK, a total of 116 million cyberattacks and data breaches were reported in May 2021. In 2022, more than 4,000 publicly disclosed data breaches occurred, that exposed approximately 22 billion records.
Data breaches are becoming more and more expensive for enterprises and governments as they are threatening data security and, consequently, the trust of consumers. In addition, the European Union (UN) has reported 356 breaches per day across the 27 member countries. Thus, an increasing number of cyberattacks and data breaches are likely to drive the global hardware security module (HSM) market during the forecast period.
Increasing Number of Cloud-Based Solutions to Propel Market
With the increasing awareness about the benefits of integrating cloud services, enterprises are rapidly including cloud-based solutions in their infrastructure. The technology helps deliver an effective cloud connection to the network. Hardware Security Modules (HSM) enable users to host encryption keys, carry out cryptographic operations, and take advantage of cloud service deployment without having to host and manage on-premises machines.
In addition, while shifting from a CapEx to an OpEx financial model, requirements have been changing with the widespread uptake of cloud services that are connected over the internet. As cloud services connected through the internet become more and more popular, the need for effective cloud-based HSMs is evolving. In practice, companies are compelled to rely more heavily on the cloud to properly manage the life cycle of the many cryptographic keys supporting their cloud-based applications. The number of individuals utilizing the internet has increased, as a result, the demand for cloud-based services is also rising. The hardware security module (HSM) market has greater options due to the usage of cloud-based services, which also leads to the implementation of a hybrid cloud strategy to provide extra capacity, resilience, and scalability. Therefore, the increasing number of cloud-based solutions is expected to propel the global hardware security module (HSM) market during the forecast period.
Recent Advancements
- On 19 January 2023, NPST (Network People Services Technologies Ltd) a leading fintech solution provider, announced its collaboration with UTIMACO, a leading hardware security module manufacturer, to tap new opportunities around hardware security modules (HSM) in the Indian market. The collaboration will further help to strengthen the security levels in the digital payment ecosystem with on-premises as well as cloud-based solutions in association with NPST.
- On 18 September 2022, Marvell announced the new Liquid Security 2 (LS2) hardware security module (HSM) adapter, enabling industries for more advanced encryption, authentication, key management, and more. The organization's fluid security product offerings use the organization's cloud-advanced OCTEON DPU family, providing a far-reaching SDK, versatility, adaptability, and dependability.
- On 15 June 2022, Crypto4A Technologies Inc., a Canadian cybersecurity technology company (C4A), announced the achievement of federal information processing standards (FIPS) 140-2 level 3+ validation. The C4A QASM also meets industry requirements for next-generation cryptographic agilities in areas, such as quorum-based remote key management, remote quantum-safe firmware updates, and code signing, thereby enabling IoT, OT, 5G, and confidential computing use cases.
Market Segmentation
Company Profiles
ST Microelectronics NV
| Attribute | Details |
| Base Year | 2022 |
| Historical Years | 2018 – 2021 |
| Estimated Year | 2023 |
| Forecast Period | 2024 – 2028 |
| Quantitative Units | Revenue in USD Billion and CAGR for 2018-2022 and 2023E-2028F |
| Report Coverage | Revenue forecast, company share, competitive landscape, growth factors, and trends |
| Segments Covered | Type Deployment Mode Application Industry Vertical Region |
| Regional Scope | Asia-Pacific, North America, Europe, Middle East & Africa, and South America |
| Country Scope | China, Japan, India, Australia, South Korea, United States, Canada, Mexico, United Kingdom, Germany, France, Spain, Italy, Israel, Turkey, Saudi Arabia, UAE, Brazil, Argentina, Colombia |
| Key Companies Profiled | ST Microelectronics NV, Ultra Electronics Holdings plc, Thales Group, IBM Corporation, Entrust Corporation, Infineon Technologies AG, Synopsys Inc., Exceet Secure Solutions GmbH, ATOS SE, and Cavium, Inc. |
| Customization Scope | 10% free report customization with purchase. Addition or alteration to country, regional & segment scope. |
| Pricing and Purchase Options | Avail customized purchase options to meet your exact research needs. Explore purchase options |
| Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request) |
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