Hardware Security Modules Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (LAN Based, PCle Based, USB Based), By End User Industry (BFSI, Retail, Communication And Technology, Automotive, Others), And By Geography - Forecasts From 2022 To 2027

Published:  Sep 2022 Report Code: KSI061611465 Pages: 127

The global hardware security module market is projected to grow at a CAGR of 15.49% to reach a value of US$2.844 billion by 2027, from US$1.038 billion in 2020.

There is an increase in the adoption of information communication and technology, data encryption, and cybersecurity solutions across different industries, including BFSI, communication, and technology, and automotive, among others, to achieve scalability, protect identities and transactions, reduce operational costs, decrease uptime and encrypt the sensitive data generated and protection of digital signatures, to prevent data breaches, is increasing the demand for effective encryption solutions. As a result, the demand for hardware security modules is increasing across these industries.

However, there is an availability of a substitute for hardware security modules in the market, hindering the market growth of the hardware security module. The key management software is designed to manage cryptographic keys in a cryptosystem and deals with keys' generation, exchange, storage, use, destruction, and replacement. This is the same function the hardware security module (HSM) performs, thus acting as a restraining factor in the growth of the hardware security module (HSM).

The growing use of cryptocurrency and crypto-wallets such as "HSMWallet," which is to provide additional security of data, passwords, transactions, and keys and information, supported by increasing investments in the cryptocurrency platforms, provides a great opportunity for the hardware security market players to expand their market share, thereby leading to overall market growth during the next five years.

Some major players like Google and Amazon are offering their "Google Cloud HSM" and "AWS Cloud HSM" as-a-service solutions. Furthermore, other market players are launching new and enhanced products to boost their market share and contribute to market growth. For example, in May 2019, Atos, one of the leading companies in providing digital transformation services and solutions, announced the launch of its new product, "Hardware Security Module," to address the problems of the IoT industry. It is a high-performance security device that can protect IoT industrial landscape via cryptographic features. They also provide Hardware Service Module, an as-a-service access solution, for a more balanced and complete protection solution. In April 2019,  Thales announced the launch of its new product offering, pays held 10K, which can facilitate the security and protection of digital payments at lower costs and lesser energy requirements, thereby easily adopting this new and innovative technology available for end-user industries.

Moreover, the government is contributing to market growth by taking initiatives and actions to boost the adoption of these hardware security modules to keep the users' data safe and secure. For example, in the wake of increasing cybersecurity threats, on May 25, 2018, the General Data Protection Regulations (GDPR), set by the EU, were made effective, under which EU residents were provided greater control over their data. These regulations applied to all the member states of the EU, and it was highlighted that all the organizations within the EU were required to comply with them, with the major objective of providing overall protection and encryption of sensitive data.

The global hardware security module market is segmented based on type, end-user industry, and geography. By type, the market is segmented as LAN-based, PCIe-based, and USB based. The end-user industry segments the global hardware security module market as BFSI, retail, communication, technology, automotive, etc.

USB based to hold a significant market share

The USB-based hardware security module is estimated to hold a significant share in the hardware security module market, which is attributable to it being an easier solution to integrate. The USB-based hardware security module can be directly attached to the computer and provides access to all the features. For example, Yubico provides its product "YubiHSM," which facilitates rapid integration due to the Open-source SDK (software development kit) and allows developers to support hardware-based activities for various applications. It can be easily integrated into the front USB slot of computers and servers and can provide security for Microsoft Active Directory certificates. The LAN-based hardware security module market is projected to witness a considerable CAGR over the forecast period owing to easy maintainability and lower power consumption at a relatively lower cost.

BFSI industry to contribute significantly to the market growth over the forecast period

The BFSI industry holds a significant market share throughout the forecast period. The increasing number of online transactions is leading to a rise in the volume of users' financial and personal sensitive data, encouraging the BFSI industry players to use hardware security modules to protect the customer's transactions and identities. The demand for hardware security modules across the global communication and technology sectors is also expanding owing to the growing volume of user data and the rising incidence of cybersecurity threats. Hardware security modules offer effective and efficient management of the voluminous and sensitive user data, thereby positively impacting the market growth of hardware security modules during the forecast period.

North America is one of the major regional markets for hardware security module vendors.

The global hardware security module market is geographically segmented into North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. The North American regional market held a significant market share in 2019 owing to the early adoption of advanced technologies and the presence of major market players in the region. Increasing R&D investments for improving and enhancing this solution's capabilities, with players attempting to integrate it into every aspect of the end-user industries, is also contributing to market growth in this region. APAC will witness significant market growth during the forecast period due to growing end-use industries in the region.  

Key Developments:

  • February 2022- A strategic partnership between Securosys and Randtronics was formed to combine the former's CloudsHSM portfolio with the latter's data privacy manager (DPM). To manage their cryptographic keys securely throughout their enterprises, businesses can combine the Securosys hardware security module with the DPM from Randtronics.
  • August 2020-   Infineon technologies have completed its acquisition of Cypress Semiconductor Corporation. With the help of this acquisition, both businesses would be able to provide their clients with a wide range of options for interacting with the digital world and advancing digitization thanks to the acquisition.
  • February 2020- Through a partnership with Fujitsu (Japan), Thales can offer an extremely safe and practical end-to-end service for enterprise public key infrastructure using its Cloud Hardware Security Modules (HSM) and Data Protection on Demand (PKI). Furthermore, Fujitsu combined its new enterprise data encryption service with Thales' Key Management platform to provide safe key management for customers. Clients will benefit from improved security, compliance, and an affordable encryption solution thanks to the alliance.

Impact of COVID-19 on the Hardware Security Modules Market

The COVID-19 outbreak has substantially impacted the global hardware security module business. A global slowdown in new projects has resulted in a drop in demand for analog semiconductors. Workers stayed at home, making it difficult for multinational firms to integrate new hardware security modules, disrupting supply chains worldwide. Only the production and supply chain is stalled. Therefore COVID-19's effects on this market are only transitory. Production, supply chains, and demand for hardware security modules will all steadily rise as soon as the situation improves. Companies should consider more sophisticated hardware security modules to increase productivity with this COVID-19 lockdown.

Hardware Security Modules Market Scope:

 

 

Report Metric Details
 Market Size Value in 2020  US$1.038 billion
 Market Size Value in 2027  US$2.844 billion
 Growth Rate  CAGR of 15.49% from 2020 to 2027
 Base Year  2020
 Forecast Period  2022–2027
 Forecast Unit (Value)  USD Billion
 Segments Covered  Type, End-User Industry, And Geography
 Regions Covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies Covered Futurex, Thales Cloud Protection & Licensing, Yubico, nCipher Security, LLC, IBM, Amazon Web Services, Inc, Atos SE, Google, Utimaco IS GmbH, Worldline
 Customization Scope  Free report customization with purchase

 

Market Segmentation

  • By Type
    • LAN based
    • PCle based
    • USB based
  • By End-User Industry
    • BFSI
    • Retail
    • Communication and Technology
    • Automotive
    • Others
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • Germany
      • France
      • United Kingdom
      • Spain
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • Israel
      • UAE
      • Others
    • Asia Pacific
      • China
      • Japan
      • South Korea
      • India
      • Thailand
      • Taiwan
      • Indonesia
      • Others

Frequently Asked Questions (FAQs)

Q1. What will be the hardware security module market size by 2027?
A1. The global hardware security module market is projected to reach a total market size of US$2.844 billion in 2027. 


Q2. What are the growth prospects for the hardware security module market?
A2. The hardware security module market is projected to grow at a CAGR of 15.49% over the forecast period. 


Q3. What is the size of the global hardware security module market?
A3. Hardware Security Module Market was valued at US$1.038 billion in 2020. 


Q4. Who are the major players in the hardware security module market?
A4. The key market players covered as a part of the hardware security module market report are Futurex, Thales Cloud Protection & Licensing, Yubico, nCipher Security, LLC, and IBM among others. 


Q5. Which region holds the largest share in the hardware security module market?
A5. North America holds the largest share of the hardware security module market owing to the early adoption of advanced technologies and the presence of major market players in the region.

1. Introduction
1.1. Market Overview
1.2. COVID-19 Impact
1.3. Market Definition
1.4. Market Segmentation

2.  Research Methodology
2.1.  Research Data
2.2.  Assumptions

3.  Executive Summary
3.1.  Research Highlights

4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.4. Industry Value Chain Analysis

5.  Global Hardware Security Module Market Analysis, By Type
5.1.  Introduction
5.2. LAN based
5.3. PCIe based
5.4.  USB based

6. Global Hardware Security Module Market Analysis, By End-User Industry
6.1.  Introduction
6.2.  BFSI
6.3. Retail
6.4.  Automotive
6.5. Communication and Technology
6.6. Others

7.  Global Hardware Security Module Market Analysis, By Geography
7.1.  Introduction
7.2.  North America
7.2.1. USA
7.2.2.  Canada
7.2.3. Mexico
7.3. South America
7.3.1. Brazil
7.3.2.  Argentina
7.3.3. Others
7.4. Europe
7.4.1. Germany
7.4.2. France
7.4.3. United Kingdom
7.4.4.  Spain
7.4.5.  Others
7.5.  Middle East and Africa
7.5.1. Saudi Arabia
7.5.2. Israel
7.5.3. UAE
7.5.4. Others
7.6. Asia Pacific
7.6.1. China
7.6.2. Japan
7.6.3. South Korea
7.6.4. India
7.6.5. Thailand
7.6.6. Taiwan
7.6.7. Indonesia 
7.6.8.  Others

8. Competitive Environment and Analysis
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3.  Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix

9.  Company Profiles
9.1. Futurex
9.2. Thales Cloud Protection & Licensing
9.3.  Yubico
9.4.  nCipher Security, LLC
9.5.  IBM
9.6. Amazon Web Services, Inc
9.7. Atos SE
9.8. Google
9.9. Utimaco IS GmbH
9.10. Worldline

Futurex              

Thales Cloud Protection & Licensing

Yubico

nCipher Security, LLC

IBM

Amazon Web Services, Inc

Atos SE

Google

Utimaco IS GmbH

Worldline

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