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 2020 To 2025

Published:  May 2021 Report Code: KSI061611465 Pages: 127

The global hardware security module market is projected to grow at a CAGR of 12.51% to reach a value of US$2.234 billion by 2025, from US$1.101 billion in 2019.

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 in order to achieve scalability, protect identities and transactions, reduce operational costs, decrease uptime and encrypt the sensitive data generated and protection of the digital signatures, so as 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 to hardware security modules in the market easily which is hindering the market growth of the hardware security module. The key management software is designed to manage cryptographic keys in a cryptosystem and includes dealing with the generation, exchange, storage, use, destruction and replacement of keys. This is the same function as the hardware security module (HSM) performs thus, acting as a restraining factor in the hardware security module (HSM) market growth.

The growing use of cryptocurrency and crypto-wallet 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 the overall market growth during the next five years.

Some of the major players like Google and Amazon are offering their “Google Cloud HSM” and “AWS Cloud HSM”, under as-a-service solutions. Furthermore, other market players are involved in launching new and enhanced products in order to boost their market share and contribute to the 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” for addressing the problems of the IoT industry. It is a high-performance security device, which can provide protection to 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 paySheild 10K, which is able to facilitate the security and the protection of digital payments at lower costs and lesser energy requirements, thereby making the adoption of this new and innovative technology easily 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 so as 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 personal data. These regulations were applicable 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 the 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.  By the end-user industry, the global hardware security module market is segmented as BFSI, retail, communication and technology, automotive and others.

USB based to hold a significant market share

The USB-based hardware security module is estimated to hold a notable 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 an array of applications. It can be easily integrated into the front USB slot of computers and servers and is able to provide security for Microsoft Active Directory certificates. LAN-based hardware security module market is projected to witness a considerable CAGR over the forecast period owing to the easy maintainability and lesser power consumption at a relatively lower cost.

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

BFSI industry holds a noteworthy 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 which is encouraging the BFSI industry players to make use of hardware security modules to protect the customer’s transactions and identities. The demand for hardware security modules across the global communication and technology sector is also expanding owing to the growing volume of user data along with the rising cases 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 one of the major regional markets for hardware security module vendors

Geographically, the global hardware security module market is segmented into North America, South America, Europe, the Middle East and 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 coupled with the presence of major market players in the region. Increasing investments in the R&D for the improvement and enhancement of capabilities of this solution with players trying to integrate it in every aspect of the end-user industries is also contributing to the market growth in this region. APAC will witness significant market growth during the forecast period on account of growing end-use industries in the region.   

The key market players covered as a part of this report are Futurex, Thales Cloud Protection & Licensing, Yubico,nCipher Security, LLC, IBM, Amazon Web Services, Inc, Atos SE, Google, Utimaco IS GmbH, and Worldline.

Hardware Security Modules Market Scope:

Report Metric Details
 Market size value in 2019  US$1.101 billion
 Market size value in 2025  US$2.234 billion
 Growth Rate  CAGR of 12.51% from 2019 to 2025
 Base year  2019
 Forecast period  2020–2025
 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

 

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
      • Others

Frequently Asked Questions (FAQs)

Q1. What will be the hardware security module market size by 2025?
A1. The global hardware security module market is projected to reach a total market size of US$2.234 billion in 2025. 


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 12.51% 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$1.101 billion in 2019. 


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, IBM, Amazon Web Services, Inc, Atos SE, Google, Utimaco IS GmbH, and Worldline. 


Q5. Which region holds the largest market share in the hardware security module market?
A5. North America is one of the major regional markets for hardware security module vendors.

1. Introduction
1.1. Market Definition
1.2. 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
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
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. 
7.2.2. North America Hardware Security Module Market, By End User Industry, 2019 to 2025
7.2.3. By Country
7.2.3.1. USA
7.2.3.2. Canada
7.2.3.3. Mexico
7.3. South America
7.3.1. South America Hardware Security Module Market, By Type, 2019 to 2025
7.3.2. South America Hardware Security Module Market, By End User Industry, 2019 to 2025
7.3.3. By Country
7.3.3.1. Brazil
7.3.3.2. Argentina
7.3.3.3. Others
7.4. Europe
7.4.1. Europe Hardware Security Module Market, By Type, 2019 to 2025
7.4.2. Europe Hardware Security Module Market, By End User Industry, 2019 to 2025
7.4.3. By Country
7.4.3.1. Germany
7.4.3.2. France
7.4.3.3. United Kingdom
7.4.3.4. Spain
7.4.3.5. Others
7.5. Middle East and Africa
7.5.1. Middle East and Africa Hardware Security Module Market, By Type, 2019 to 2025
7.5.2. Middle East and Africa Hardware Security Module Market, By End User Industry, 2019 to 2025
7.5.3. By Country
7.5.3.1. Saudi Arabia
7.5.3.2. Israel
7.5.3.3. UAE
7.5.3.4. Others
7.6. Asia Pacific
7.6.1. Asia Pacific Hardware Security Module Market, By Type, 2019 to 2025
7.6.2. Asia Pacific Hardware Security Module Market, By End User Industry, 2019 to 2025
7.6.3. By Country
7.6.3.1. China
7.6.3.2. Japan
7.6.3.3. South Korea
7.6.3.4. India
7.6.3.5. 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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