Report Code : A05669
The USB-based /portable segment is expected to experience the fastest growth in the coming years, due to their suitability for offline situations, where the modules are stored safely in USB when not in use. Using USB-based hardware security modules, organizations can offer high-assurance cryptographic solutions at low cost. This module is suitable for laptops, workstations, and desktops due to its portability and USB connectivity.
Akhila Mayabrahmma - Lead Analyst
BFSI at Allied Market Research
According to a new report published by Allied Market Research, titled, “Hardware Security Module Market, by Type (LAN based/ Network Attached, PCI-Based/ Embedded Plugins, USB-Based/ Portable, and Smart Cards), Deployment Mode (On-premise, and Cloud), by Application (Payment Processing, Code and Document Signing, Security Sockets Layer (SSL) and Transport Security Layer (TSL), Authentication, Application-Level Encryption, and Others) and Industry Vertical (BFSI, IT & Telecommunication, Government, Consumer Goods & Retail, Transportation, Aerospace & Defense, and Others): Global Opportunity Analysis and Industry Forecast, 2023-2032." The hardware security module market was valued at $1.3 billion in 2022, and is estimated to reach $5.2 billion by 2032, growing at a CAGR of 14.7% from 2023 to 2032.
A hardware security modules module can be referred to as a physical device that offers extra safety for sensitive data. This category of device is utilized for crucial functions such as decryption, encryption, and authentication for the utilization of applications, databases, and identities. Businesses can utilize hardware security modules to protect trade secrets that have substantial value by confirming only authorized individuals can access the hardware security modules module to complete a cryptography key transaction.
Furthermore, increase in data breaches and cyberattacks and increase in the adoption of the 5G network is boosting the growth of the global hardware security module market. in addition, an increase in strict data security compliances positively impacts the growth of the hardware security module market. However, the high price related to the hardware security modules and increasing security concerns is hampering the hardware security module market growth. On the contrary, growing reliance on cryptographic keys is expected to offer remunerative opportunities for the expansion of the hardware security module market during the forecast period.
Depending on deployment mode, the on-premise segment holds the largest hardware security module market share owing to, increasing investments by key players in the latest technologies for communication, growing demand for high data speed, and growing need for enhanced broadband capacity. However, the cloud segment is expected to grow at the highest rate during the forecast period, due to huge adoption as it takes the complete responsibility of integration of the software and solving any issue related to security.
Region-wise, the hardware security module market size was dominated by Europe in 2022 and is expected to retain its position during the forecast period, due to the rise in the BFSI, IT and Telecommunications, and medical and life sciences, along with the automotive industry. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to increasing government initiatives in data security compliance and an increasing number of mobile and internet users in developing nations such as India and China are accounted development of private and rural banking.
The COVID-19 pandemic had a negative impact on the hardware security module market. The pace of new projects has slowed globally, and demand for elemental semiconductors has decreased. At the same time, consumer demands were limited as individuals remained keen on eliminating non-essential expenses from their budgets. Moreover, the global market is poised for recovery and potential growth as digitalization continues to gain traction and the restrictions on the movement of people and goods are gradually relaxed. In addition, consumer demand has also subsequently reduced as individuals are more keen on eliminating non-essential expenses from their respective budgets as the general economic status of most individuals has been severely affected by this outbreak.
These elements are expected to burden the revenue trajectory of the global hardware security module market over the forecast period. However, in 2021, the state-run administrations partially opened the economy, which enabled the market for hardware security modules to recover gradually. Additionally, the need for hardware security modules is surging due to the widespread trend toward advanced installations, which, as a result, accelerates the growth of the hardware security module industry.
The integration of advanced technologies such as AI, 5G, connected devices, and IoT technologies is helping industries to improve various aspects of a company such as perception, reasoning, learning, and problem solving of the human mind for detecting and predicting risks, which in turn, is driving the growth of the market. In addition, increase in demand for information and data security, resulting from the adoption of modern technologies such as IOT and cloud computing, spurs the growth of the hardware security module market trends. With IOT, the protection of authenticity, customer privacy as well as data and communication become the key areas to focus. To secure these, HSM is the priority for all industries. In 2019, ATOS SE announced the launch of latest HSM i.e. new Horus HSM, a highly performed security device, designed primarily to secure IOT ecosystem by using cryptographic features, which are expected to provide lucrative opportunities for the market.
Moreover, various public and private entities are expected to come together to create ecosystems to share data for multiple use cases under a common regulatory and cybersecurity framework, which in turn, is expected to provide lucrative opportunity for the growth of the market. Several market players in the hardware security module vendors are focusing on venture capital investments to raise funding for enhancing the product portfolio and cementing the market position. These investments are expected to create new opportunities for the growth of the market during the forecast period. For instance, in December 2019, Thales e-Security Inc. launched Safe Net Luna Network HSM version 7.4 with new features like functionalist module, utilization metrics, and support for the ed25519ph curve variant.
Furthermore, key players in the hardware security module market include Thales, utimaco GmbH., future, Adweb Technologies, IBM Corporation, Atos SE, and Hewlett Packard Enterprise. These market players are pursuing various growth strategies, such as strategic partnerships, mergers & acquisitions, and new product development, as part of the efforts to further expand their global market presence. For instance, in March 2021, FutureX, a global leader in hardened enterprise class data security solutions announced that its payment HSM are integrated with jPOS to drive jPOS based payment and expand their abilities. Therefore, such strategic initiatives drive the market growth.
The key players profiled in the hardware security module market analysis are Thales, utimaco GmbH., future, Adweb Technologies, IBM Corporation, Atos SE, Hewlett Packard Enterprise, Ultra-Electronics, Entrust Datacard, and Microchip Technology Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the hardware security module market industry.
Talk to David (Europe)
Talk to Sona Padman (Americas)
5933 NE Win Sivers Drive #205,
Portland, OR 97220 United States
Toll Free: +1-800-792-5285
UK: +44-845-528-1300
Hong Kong: +852-301-84916
India (Pune): +91 2066346060
Fax: +1(855) 550-5975
Allied Market Research
Contact Toll Free: +1-800-792-5285
Drop us an email at
media@alliedmarketresearch.com
Hardware Security Module Market by Product 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 and Document Signing, Security Sockets Layer (SSL) and Transport Security Layer (TSL), Authentication, Application-Level Encryption, Others), by Industry Vertical (BFSI, IT and Telecommunication, Government, Consumer Goods and Retail, Transportation, Aerospace, Others): Global Opportunity Analysis and Industry Forecast, 2023-2032
To ensure high-level data integrity, accurate analysis, and impeccable forecasts
For complete satisfaction
On-demand customization of scope of the report to exactly meet your needs
Targeted market view to provide pertinent information and save time of readers
Buy Full Version
"Hardware Security Module Market"
Purchase Enquiry
Get insights on topics that are crucial for your business. Stay abreast of your interest areas.
Get Industry Data AlertsTo ensure high-level data integrity, accurate analysis, and impeccable forecasts
For complete satisfaction
On-demand customization of the scope of the report to exactly meet your needs
Targeted market view to provide pertinent information and save the time of readers