Global Hardware Security Modules (HSM) Market Size By Type (LAN-Based HSM/Network-Attached HSM, PCI-e-Based/Embedded Plugins HSM, USB-Based/Portable HSM), By Application (Authentication, Database Encryption, PKI Or Credential Management), By Industry (Retail and Consumer Products, Banking and Financ

Hardware Security Modules (HSM) Market Size And Forecast

Hardware Security Modules (HSM) Market size was valued at USD 1,025.86 Million in 2020 and is projected to reach USD 2,862.57 Million by 2028, growing at a CAGR of 13.26% from 2021 to 2028.

With the rise in the frequency and complexity of data security threats, the need for the implementation of a data security threat is prevalent. This is one of the major factors contributing to the growth of the market. The Global Hardware Security Modules (HSM) Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Global Hardware Security Modules (HSM) Market Definition

A hardware security module can be defined as a physical device that provides extra security for sensitive data. These devices enable activities such as encryption, decryption and authentication for the use of databases and applications. Businesses can use hardware security models to secure trade secrets that have significant value by ensuring only authorized individuals can access the hardware security module to complete a cryptography key transaction. The entire cryptography key lifecycle from provisioning, managing, and storing to disposing or archiving the keys occurs in the hardware security module. also may be captured via a hardware security module, and all access transactions are logged to create an audit trail. In general terms hardware security modules (HSMs) can be described as dedicated systems that physically as well as logically aid in securing cryptographic keys and cryptographic processing.

Commercially, HSMs are available in two major types including standalone network-attached appliances and hardware cards that plug into existing network-attached systems. Furthermore, they can be deployed as cloud-based or on-premises model. The latter model is more useful in case where companies require or want full control over their keys, crucial data and policies without relying or having an involvement of the Provider (CSPs). However, in case of on-premise, the cost involvement and maintenance are a greater issue. Whereas, cloud HSMs deployment offer cost effectiveness and are best suited for small and medium businesses.

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Global Hardware Security Modules (HSM) Market Overview

mechanisms, and surrounding backup and restore. As government and organizations are looking to leverage these proven benefits, security architects will depend more on HSMs to safeguard against the ever-evolving threats as well as to exploit evolving opportunities aided by technological advances. Hence, HSM vendors will have to continuously undertake research and development activities to upgrade their products and introduce new features in order to make their product supportive of enterprise key management, , cryptography as a service and IoT among others.

Due to the increase in the complexity as well as the frequency of security threats, there is an increase in the loss of confidentiality. In the decline in the integrity of availability as well an overall negative impact with the operations or assets of an organization. With the increasing complexity of data security threats, the impact of a threat cannot be predicted based on their intensity. Whether the risk is major or minor, the catering of the risk with equal vigilance can result in major damage to the data infrastructure. In order to overcome such shortcomings, a substitute for more conventional security methods must be introduced. It is due to this that security solutions have been implemented. Of one the most noticeable threats to security in various industries that have adopted digitalization are cybersecurity threats.

Cloud deployment model is rapidly gaining popularity across several industries owing to widespread benefits such as ease of working, scalability, flexibility and interoperability among others. A major demand for cloud systems was observed from manufacturing, professional services and banking industries with estimated spend of USD 20 billion, USD 18 billion and USD 16 billion respectively. . This, in turn, has made hardware security model (HSMs) an inevitable component to be used in organization’s Cybersecurity strategy.

Global Hardware Security Modules (HSM) MarketSegmentation Analysis

The Global Hardware Security Modules Market is segmented on the basis of Type, Application, Industry, And Geography.

Hardware Security Modules (HSM) Market, By Type

• LAN-Based HSM/Network-Attached HSM• PCI-e-Based/Embedded Plugins HSM• USB-Based/Portable HSM

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Depending on the HSM solution used, remote HSM management enables greater, more flexible control, strong access control based on digital credentials rather than physical keys, stronger audit controls from tracking activities to individual card credentials, quicker identification of remote HSM status issues, simpler software and license upgrade installation, reduced risk of errors and simplified logistics.

Hardware Security Modules (HSM) Market, By Application

• Authentication• SSL & TLS• PKI Or Credential Management• Payment Processing• Database Encryption• Code and Document Signing• Application-Level Encryption

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In computer systems, authentication is a technique that confirms and makes sure the user’s identity. Authentication is one of those five pillars of information assurance (IA), and the other four include integrity, confidentiality, availability, and nonrepudiation. Authentication plays a crucial role in securing the information and data by offering the safe key exclusively to the authorized person to make any transaction, logging in, or performing any administrative process. The use of HSMs for the authentication application helps to reduce fraud and protect users from cyberattacks while shopping online or accessing private or confidential information through a web portal or application.

Hardware Security Modules (HSM) Market, By Industry

• Banking and Financial Services• Government• Technology and Communication• Healthcare and Life Sciences• Industrial and Manufacturing• Energy and Utility• Retail and Consumer Products• Others

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The banking and financial industry uses hardware security modules in a variety of ways. Hardware security models are used in this industry through products such as payment hardware security modules, which is used primarily by the retail banking industry to provide high levels of protection for customer PINS and cryptographic keys that are used in the magnetic stripe and EMV chip cards. Some of the most common uses in the payment ecosystem include PIN generation, validation and management. It also encircles payment credential issuing for payment cards and mobile applications, PIN block translation during the network switching of ATM and POS transactions.

Hardware Security Modules (HSM) Market, By Geography

• North America• Europe• The Asia Pacific• Rest of the world

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Based on geography

the North American region holds a large share in the Hardware Security Modules (HSM) market. The laws related to cybersecurity risks have widened the scope of hardware security modules and cybersecurity IoT in the North America region. A hardware security module (HSM) is a physical device that controls digital keys, it provides safe storage and generation of digital keys. It offers both physical and logical protection of these materials from non-authorized use and potential adversaries. The adoption rate for hardware security modules is growing gradually and is mainly being done by major countries such as the U.S., Germany, and Japan. The adoption of cloud-based HSM is on the rise predominantly because of its feasibility and cost-effectiveness among small and medium-sized enterprises in this region.

Key Players

The “Global Hardware Security Modules (HSM) Market” is highly fragmented with the presence of a large number of manufacturers globally. Some of the major players including are Entrust Datacard, Thales Group, Utimaco GmbH, IBM Corporation, FutureX, SWIFT, Atos SE, Ultra-Electronics, Yubico, Microchip Technology Inc among others. Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key Developments

• February 2020Thales partnered with Fujitsu (Japan) to use Thales’ Cloud Hardware Security Modules (HSM) and Data Protection on Demand to provide a highly secure and convenient end-to-end service for enterprise public key infrastructure (PKI). In addition, Fujitsu integrated Thales’ Key Management platform with its new enterprise data encryption service to offer secure lifecycle management of cryptographic keys of customers. The partnership will ensure enhanced security, compliance, and a cost-effective encryption solution for clients.

• April 2020Infineon Technologies acquired Cypress Semiconductor Corporation (US). The addition of Cypress lets Infineon further bolster its focus on structural growth drivers and a broader range of applications. This will accelerate the company’s path of profitable growth. Cypress adds a differentiated portfolio of microcontrollers, connectivity components, software ecosystems, and high-performance memory. All this is highly beneficial to Infineon’s leading power semiconductors, automotive microcontrollers, sensors, and security solutions.

• August 2019Hewlett Packard Enterprise acquired the business assets of MapR (US), a leading data platform for artificial intelligence and analytics applications powered by scale-out, multi-cloud, and multi-protocol file system technology. This transaction included MapR’s technology, intellectual property, and domain expertise in artificial intelligence and machine learning (AI/ML), and analytics data management.

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