A hardware secure module (HSM) is a dedicated crypto processor that is specifically built for crypto key lifecycle protection. Hardware secure modules serve as trust anchors, safeguarding the cryptographic infrastructure of some of the world's most secure businesses by securely maintaining, processing, and storing cryptographic keys within a hardened, tamper-resistant device. To ensure the security of data kept in the cloud, cloud service providers are using technologies such as encryption, tokenization, and other cryptographic solutions, which can enable secure data transfers and data safety for data stored in the cloud. The demand for HSMs for safeguarding data and information in the cloud environment is projected to give manufacturers and cloud service providers with several chances to develop customized solutions that provide key management and key storage as a managed service. All these factors are assisting the growth of hardware secure module adapters market size globally.

The global hardware Secure module (HSM) adapters market share is segmented on the basis of deployment type, type, industry, application and region. Based on deployment type, the market is divided into on-premises, cloud based. In terms of type, the market is categorized into LAN ased/network attached, PCI based, USB based, smart cards. In terms of type, the market is categorized into code and document signing, application-level encryption, payment processing, database encryption, PKI and credential management, authentication, security sockets layer (SSL) and transport security layer (tsl). Based on industry, the market is divided into transportation, consumer goods & retail, aerospace & defense, energy and power, banking, financial services and insurance, industrial manufacturing, medical and life sciences, public sector/government, it and telecommunications. Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).

Key players operating in the global hardware Secure module (HSM) adapters industry include Hewlett Packard Enterprise Development LP, Thales, Utimaco, International Business Machines Corporation, Microchip Technology, Infineon Technologies, Securosys, Spyrus, Atos SE, Yubico. These companies have adopted several strategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to strengthen their foothold in the global hardware Secure module (HSM) adapters market.

COVID-19 impact analysis

The COVID-19 outbreak has posed a significant strategic threat to electronics and manufacturing companies. When compared to other industries, the business for hardware secure modules specialized for the medical and telecommunications verticals is less affected. The essential prerequisite for ensuring the best quality of products is to maintain a safe, consistent, and efficient production process. Growing pricing demands, regulatory and safety restrictions, and an increasingly broad product portfolio are just a few of the issues that hardware secure module makers confront. Hardware secure modules are used in a variety of industries, including retail, BFSI, and transportation, and as a result of COVID-19, the need for contactless payments has increased in order to maintain social distancing, which is expected to surge the demand for these modules across multiple industries. Other verticals are expected to close the supply-demand gap within 2–3 years, and the hardware secure module adapters will rise steadily through 2026. All these factors are hampering the growth of hardware secure module adapters market size globally

Top impacting factors

One of the driving factors for the hardware secure module adapters market opportunity is requirement for effective management of cryptographic keys. Cryptography at the hardware level is at the heart of many operations that provide security, such as document signing, authentication, and application-level encryption. These processes can become difficult, expensive, and risky if they are not effectively handled. Hardware secure modules can be used to handle the whole life cycle of keys. These are dedicated cryptographic hardware modules that provide a separate zone for cryptographic functions. Key management is used to manage the number and diversity of keys inside an organization's IT infrastructure. By securing keys and operations with tamper-resistant hardware, hardware secure modules enable companies to strengthen the security of data encryption and digital signature procedures. As a result, the market is projected to be driven by these modules' capacity to enable effective administration of cryptographic keys. However, hardware secure modules created with older generation skills present significant adoption obstacles. For starters, they are created utilizing commercial hardware, which has a high initial purchasing cost. Second, they significantly increase the complexity and cost of operations.

In many circumstances, the staff costs of handling and controlling these modules far outweigh the module cost which are considered to be the restraining factor for the hardware secure module adapters market growth. The high cost of hardware secure modules is due to features such as tamper-resistant environments for secure cryptographic processing, key protection and management, and the requirement of certification to meet compliance standards. Due to the high cost of hardware secure modules, small and mid-sized businesses find it difficult to implement these solutions due to insufficient IT funds. As a result, the expense of hardware secure modules works as a restraint factor to their adoption in firms with limited resources.

Market trends

New product launches to flourish the market

According to hardware secure module adapters market trends, Thales, a French multinational company that designs and builds electrical systems and provides services for the aerospace teamed with Fujitsu, a Japanese multinational information and communications technology company in February 2020 to deliver a highly secure and simple end-to-end service for enterprise public key infrastructure using Thales' Cloud Hardware Secure Modules (HSM) and Data Protection on Demand (PKI). Furthermore, Fujitsu integrated Thales' Key Management platform with its new enterprise data encryption solution to provide secure lifecycle management of customers' cryptographic keys. Clients will benefit from better security, compliance, and a cost-effective encryption solution as a result of the collaboration.

Surge in usage in data security in cloud environments and medical & life sciences

Cloud adoption is quickly rising across industries, posing numerous security problems for cloud service providers, particularly in dealing with the complexities of privacy and data protection legislation. Companies are amassing vast volumes of data, ranging from extremely sensitive financial, commercial, and consumer information to relatively insignificant information. They are also transferring more data to the cloud and storing it in more places than ever before — private, public, and hybrid clouds, software-as-a-service apps, and so on. Hardware secure modules are important in the sphere of healthcare, particularly for telematics infrastructure (TI), such as the new electronic health card (eGK) in Germany. The primary goal of eGK was to enable cross-system registration, processing, and transmission of patient data inside a secure network amongst trusted parties such as physicians, care providers, medical practices, hospitals, pharmacies, and health insurers. It is mandatory for pharmaceutical businesses developing new drugs to adhere to security and privacy regulations. These businesses are also audited on a regular basis. A cloud-based system for remote secure access enables pharmaceutical businesses to minimize paper work, easily distribute documents, automate document handling, and record regulatory-compliant signatures on handheld devices like as tablets and smartphones. Cloud signature solutions enable pharmaceutical businesses to significantly reduce shipping costs while also accelerating time to market and the development of new medications.

Market scope and structure analysis

Key benefits of the report

• This study presents the analytical depiction of the hardware secure module adapters market along with the current trends and future estimations to determine the imminent investment pockets.
• The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the market share.
• The current market is quantitatively analyzed from 2020 to 2030 to highlight hardware secure module adapters market growth scenario.
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
• The report provides a detailed hardware secure module adapters market analysis based on competitive intensity and how the competition will take shape in coming years

Key segments covered

Questions answered in the research report

• Which are the leading players active in the hardware secure module (HSM) adapters market?
• What are the detailed impacts of COVID-19 on the market?
• What current trends will influence the market in the next few years?
• What are the driving factors, restraints, and opportunities in the market?