The Worldwide Hardware Security Modules Industry is Expected to Reach $2 Billion by 2027

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Nov 03, 2022, 12:15 ET

DUBLIN, Nov. 3, 2022 /PRNewswire/ -- The "Global Hardware Security Modules Market by Deployment Type (On-premises, Cloud Based), Type (LAN Based/Network Attached, PCI Based, USB Based, Smart Cards ), Applications, Verticals and Region (North America, Europe, APAC, RoW) - Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.

The hardware security module market size is valued at USD 1.1 Billion in 2022 and is anticipated to be USD 2.0 Billion by 2027; growing at a CAGR of 13.1% from 2022 to 2027.

Lawmakers and regulators worldwide are improving the existing data security compliances implementing new legal frameworks, and defining new data security regulations to respond to the increasing internal and external risks, e.g., members of the IT team with knowledge of and access to networks, data centers, and admin accounts, which can lead to data security risks.

As requirements for data protection compliance are becoming stringent, the use of point solutions to patch holes in data security compliance requirements is also increasing, resulting in rising demand for hardware security modules.

These modules provide a common, extensible implementation infrastructure that supports compliance regimes with protection for data-at-rest using encryption, enterprise key management, and access control and security intelligence across enterprises. Regulations such as FIPS 140-2 Level 3, PCI DSS, NIST, and ANSI must be followed by the manufacturers of hardware security modules.

Growing preference for digital payments

As cash usage is declining globally, digital payments are gaining popularity. While digital products such as payment apps, digital wallets, buy now pay later, and account-to-account (A2A) payments are gaining popularity, card payments continue to rule in markets with a significant incumbent advantage.

The transition to frictionless, embedded banking journeys is driven by shifting consumer behaviors and reinvented customer experiences. Customers now demand simple, invisible, and embedded payment methods that guarantee secure and quick transactions.

As consumers are becoming used to digital payments, payment service providers and merchants will need to keep up with technological advancements and consistently rising expectations to attract customers. Companies may keep up with the rapidly evolving innovations in the market by adopting an agile payment strategy. Due to the growing usage of digital payments, the need for hardware security modules for protecting critical user data is also expected to rise.

Asia Pacific is the second fastest-growing region in the hardware security module market

Asia Pacific is projected to be a high-growth market for hardware security modules during the forecast period. With three of the top 10 largest economies in the world - China, India, and Japan - the region presents a high potential for market growth. In this report, Asia Pacific constitutes Japan, China, India, South Korea, Australia, and the Rest of APAC.

The growing demand for hardware security modules is attributed to the increasing number of manufacturers that require secure networks to enable internal and external communication across geographically diversified business units.

Key Topics Covered:

1 Introduction

2 Research Methodology

3 Executive Summary

4 Premium Insights
4.1 Attractive Opportunities for Players Operating in Hardware Security Modules Market
4.2 Hardware Security Modules Market, by Deployment Type
4.3 Market for Medical & Life Sciences Vertical, by Region
4.4 Market, by Vertical and Region
4.5 Market, by Region

5 Market Overview
5.1 Introduction
5.2 Market Dynamics
5.2.1 Drivers
5.2.1.1 Increasing Data Breaches and Cyberattacks
5.2.1.2 Need to Follow Stringent Data Security Compliances
5.2.1.3 Requirement for Effective Management of Cryptographic Keys
5.2.1.4 Growing Preference for Digital Payments
5.2.2 Restraints
5.2.2.1 High Ownership Costs Associated with Hardware Security Modules
5.2.2.2 Vulnerability to Cyberattacks and Security Breaches
5.2.3 Opportunities
5.2.3.1 Rising Demand for Data Security in Cloud Environments
5.2.3.2 Increased Adoption of Connected Devices and Internet of Things (Iot) Technologies in Smart Cities
5.2.3.3 Increased Demand for Hardware Security Modules with Advent of 5G
5.2.4 Challenges
5.2.4.1 Discovering and Protecting Sensitive Data
5.2.4.2 Inability to Control Key Management from Outside Physical Protection Boundary of Hardware Security Modules
5.2.4.3 Complex Integration Process
5.3 Value Chain Analysis
5.3.1 Research, Design, and Development
5.3.2 Raw Material Suppliers
5.3.3 Original Equipment Manufacturers (Oems)
5.3.4 System Integrators
5.3.5 Suppliers and Distributors
5.3.6 Verticals
5.4 Ecosystem Analysis
5.5 Technology Analysis
5.5.1 Commercialization of Internet of Things (Iot)
5.5.2 Emergence of 5G
5.5.3 Integration of Hardware Security Modules into Contactless Smart Cards
5.5.4 Digital Signature
5.6 Average Selling Price (ASP) Analysis
5.7 Patents Analysis
5.8 Trade Data
5.9 Regulatory Landscape
5.9.1 Regulatory Bodies, Government Agencies, and Other Organizations
5.9.2 Global Regulations Focused on Fraud Prevention and Standardization
5.9.3 Regulations in North America Focused on Consumer Protection
5.9.4 Regulations in Europe Focused on Standardization
5.9.5 Regulations in Asia-Pacific Focused on Domestic Payment Networks
5.10 Porter's Five Forces Analysis
5.11 Case Study Analysis
5.11.1 Farmers & Merchants Bank Implements Cardonce Solution Offered by Cpi Card Group
5.11.2 Rbs Deploys Fingerprint Biometric Cards for Payments
5.11.3 Mastercard, Idemia, and Matchmove Partnered to Launch Biometric Cards in Asia
5.11.4 Nasdaq Omx Partnered with Thales to Deliver Secure Cloud for Financial Services
5.12 Key Stakeholders and Buying Process
5.12.1 Key Stakeholders in Buying Process
5.12.2 Buying Criteria
5.13 Revenue Shift and New Revenue Pockets for Customers' Businesses

6 Hardware Security Modules Market, by Deployment Type
6.1 Introduction
6.2 On-Premise
6.2.1 Growing Need for Complete Control Drives
6.3 Cloud
6.3.1 Cost-Effectiveness Associated with Cloud-Based Hardware Security Modules

7 Hardware Security Modules Market, by Application
7.1 Introduction
7.2 Payment Processing
7.2.1 High Demand for Sophisticated Payment Processing Methods to Improve Electronic Transactions
7.3 Code and Document Signing
7.3.1 High Adoption of Hardware Security Modules for Code and Document Signing
7.4 Security Sockets Layer (Ssl) and Transport Security Layer (Tsl)
7.4.1 Increased Demand for Security Sockets Layer (Ssl) and Transport Security Layer (Tsl) in It & Telecommunications Vertical
7.5 Authentication
7.5.1 Growing Need for Hardware Security Modules in Authentication Applications
7.6 Database Encryption
7.6.1 Rising Focus on Protecting Data Through Encryption
7.7 Public Key Infrastructure (Pki) and Credential Management
7.7.1 Increasing Demand for Hardware Security Modules in Credential Management to Enable Users to Transmit Data Safely
7.8 Application-Level Encryption
7.8.1 Increasing Requirement for Enhancing Efficiency and Accuracy of Application-Level Encryption

8 Hardware Security Modules Market, by Type
8.1 Introduction
8.2 Lan Based/Network Attached
8.2.1 Lan-Based Hardware Security Module Act as Centralized Key Management System
8.3 Pci Based or Embedded Plugin
8.3.1 Pci-Based Hardware Security Modules Can Secure Entire Electronic Control Unit (Ecu)
8.4 Usb Based or Portable
8.4.1 Portable Hardware Security Modules Can Perform Encryption and Key Protection Functions
8.5 Smart Cards
8.5.1 Smart Cards Reduce Risk of Cybercrimes by Protecting Digital Assets

9 Hardware Security Modules Market, by Vertical
9.1 Introduction
9.2 Banking, Financial Services, and Insurance (Bfsi)
9.2.1 Rising Use of Hardware Security Modules to Mitigate Risks of Online Financial Fraud
9.3 It & Telecommunications
9.3.1 Growing Need for High Authentication and Device Security and Rising Developments in 5G Infrastructure
9.4 Public Sector/Government
9.4.1 Rising Need for Prolonged Data Protection Irrespective of Location
9.5 Industrial Manufacturing
9.5.1 Adoption of Hardware Security Modules to Exchange Data Across Multiple Business Levels
9.6 Energy & Power
9.6.1 Integration of Hardware Security Modules into Critical Infrastructures to Enhance Security Protocols
9.7 Consumer Goods & Retail
9.7.1 High Need to Secure Proprietary Information
9.8 Medical & Life Sciences
9.8.1 Rising Need to Share Data Only Across Trusted Partners and Devices
9.9 Aerospace & Defense
9.9.1 Increasing Use of Hardware Security Modules to Safeguard Critical Data
9.10 Transportation
9.10.1 Increasing Advancements in Connected Cars

10 Hardware Security Modules Market, by Region

11 Competitive Landscape
11.1 Overview
11.2 Market Share Analysis
11.3 Hardware Security Modules Market: Revenue Analysis, 2019-2021
11.4 Company Evaluation Quadrant, 2021
11.4.1 Stars
11.4.2 Pervasive Players
11.4.3 Emerging Leaders
11.4.4 Participants
11.5 Competitive Benchmarking
11.5.1 Product Footprint (10 Companies)
11.6 Startup/Sme Evaluation Quadrant, 2021
11.6.1 Progressive Companies
11.6.2 Responsive Companies
11.6.3 Dynamic Companies
11.6.4 Starting Blocks
11.7 Competitive Scenarios and Trends
11.7.1 Product Launches
11.7.2 Deals

12 Company Profiles
12.1 Key Companies
12.1.1 Thales
12.1.2 Utimaco
12.1.3 Futurex
12.1.4 Infineon Technologies
12.1.5 Ibm
12.1.6 Stmicroelectronics
12.1.7 Microchip Technology
12.1.8 Atos Se
12.1.9 Yubico
12.1.10 Swift
12.2 Other Players
12.2.1 Securosys
12.2.2 Spyrus
12.2.3 Ledger
12.2.4 Ultra Electronics
12.2.5 Adwebtech
12.2.6 Efficient India
12.2.7 Lattice Semiconductors
12.2.8 Ellipticsecure
12.2.9 Amazon Inc.
12.2.10 Entrust Security
12.2.11 Escrypt
12.2.12 Sansec Technology
12.2.13 Fortanix
12.2.14 Jisa Softech
12.2.15 Microsoft