What are the Historical Developments and Current Growth Metrics of the Hardware Security Modules Market?
The hardware security modules market has seen considerable growth due to a variety of factors.
• In recent years, the market size of hardware security modules has seen rapid expansion. The market value, which is set at $1.71 billion in 2024, is predicted to rise to $1.92 billion in 2025, boasting a compound annual growth rate (CAGR) of 12.7%. The surge witnessed in the historic period is tied to factors such as growing cybersecurity risks, regulatory compliance stipulations, standardization of encryption, elevated data sensitivity, and issues related to national security.
What is the Forecasted Market Size and CAGR for the Hardware Security Modules Market?
The Hardware Security Modules market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for hardware security modules is anticipated to witness significant expansion in the coming years. It is projected to escalate to $3.63 billion in 2029, registering a compound annual growth rate (CAGR) of 17.2%.
This upsurge during the forecast period can be credited to factors such as stringently enforced data privacy laws, heightened usage of biometric data, the rise in remote working norms, demand from rising markets, and a shift toward service-oriented models. Key trends during the forecast period comprise of digital identity safeguarding, the spread of 5g networks, incorporation with blockchain technology, focus on intuitive user interfaces, partnerships and collaborations, as well as hybrid and multi-cloud surroundings.
What Key Factors and Trends Are Driving The Growth Hardware Security Modules Market?
The projection for growth in the hardware security module market is reportedly due to the surge in data breaches and cyberattacks. A cyber attack refers to the unauthorized attempt to penetrate a computer network or system to inflict harm, while a data breach entails unauthorized extraction or theft of data from a system without the knowledge of the owner. A hardware security module, or HSM, is a tangible device designed to guard data against both inherent and logical security risks, thus ensuring data and information safety through its inbuilt vulnerability protection feature. The rise of digital payments has concurrently triggered a spike in cyberattacks and data infringement events, thereby boosting the need for hardware security modules. For example, in the financial year 2022-2023, the Australia-based Government department, Department of Defence Australia, reported that the Australian Cyber Security Centre received in excess of 94,000 cybercrime complaints, indicating a 23% increase from the 2021-2022 period. Hence, the surge in data breaches and cyberattacks is spurring the hardware security module market growth.
What Are The Market Segments In The Hardware Security Modules Market?
The hardware security modules market covered in this report is segmented –
1) By Type: LAN Based Or Network Attached, PCI-Based Or Embedded Plugins, USB Based Or Portable, Smart Cards
2) By Deployment Type: On-Premise, Cloud
3) By Application: SSL (Secure Sockets Layer), TSL (Transport Layer Security), Authentication, Payment Processing, Code And Document Signing, Application-Level Encryption, Database Encryption, Public Key Infrastructure (PKI), Credential Management
4) By End-User: Banking And Financial Services, Energy And Utility, Retail And Consumer Products, Government Technology And Communication, Industrial And Manufacturing, Healthcare, Life Sciences
Subsegments:
1) By LAN Based Or Network Attached: Standalone HSMs, Clustered HSMs
2) By PCI-Based Or Embedded Plugins: Server-Side HSMs, PCI Express HSMs
3) By USB Based Or Portable: USB HSMs, Hardware Tokens
4) By Smart Cards: Contact Smart Cards, Contactless Smart Cards
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What Trends Are Shaping The Hardware Security Modules Market?
Product innovation is growing in trend within the hardware security module market, as major companies constantly focus on the development of novel products to bolster their standing. An example of this is how Thales Group, a technology company based in France that is involved in the creation, design, and manufacturing of electrical systems and aircraft equipment, rolled out their new IoT connection solution, ELS62, in February 2022. This solution offers improved dependability and security for smart devices, which helps simplify the digital transition process of businesses. It adapts a modest technology to simplify design and fasten development, thereby leading to a quicker time-to-market for IoT products. ELS62 provides several connectivity options and robust cybersecurity for IoT devices, complemented by security protocols that protect both the device and its corresponding data through defenses against cyber threats, solid device authentication, and data encryption.
Who Are the Key Players In The Hardware Security Modules Market?
Major companies operating in the hardware security modules market include:
• Thales e-Security Inc.
• Utimaco GmbH
• International Business Machines Corporation
• FutureX LP
• Yubico Inc.
• SWIFT SCRL.
• ATOS SE
• Ultra Electronics Holdings plc
• Entrust Corporation
• Hewlett-Packard Enterprise Development LP
• Securosys SA
• Infineon Technologies AG
• Ledger & Spyrus Inc.
• Exceet Secure Solutions GmbH
• JISA Softech Pvt Ltd
• Google LLC
• Microchip Technology Inc.
• Amazon Web Services Inc.
• WIBU-SYSTEMS AG
• Trustwave Holdings
What Are The Regional Insights Into The Hardware Security Modules Market?
Europe was the largest region in the hardware security module market in 2024. The regions covered in the hardware security modules market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
