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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 Market4.2 Hardware Security Modules Market, by Deployment Type4.3 Market for Medical & Life Sciences Vertical, by Region4.4 Market, by Vertical and Region4.5 Market, by Region
5 Market Overview 5.1 Introduction5.2 Market Dynamics5.2.1 Drivers5.2.1.1 Increasing Data Breaches and Cyberattacks5.2.1.2 Need to Follow Stringent Data Security Compliances5.2.1.3 Requirement for Effective Management of Cryptographic Keys5.2.1.4 Growing Preference for Digital Payments5.2.2 Restraints5.2.2.1 High Ownership Costs Associated with Hardware Security Modules5.2.2.2 Vulnerability to Cyberattacks and Security Breaches5.2.3 Opportunities5.2.3.1 Rising Demand for Data Security in Cloud Environments5.2.3.2 Increased Adoption of Connected Devices and Internet of Things (Iot) Technologies in Smart Cities5.2.3.3 Increased Demand for Hardware Security Modules with Advent of 5G5.2.4 Challenges5.2.4.1 Discovering and Protecting Sensitive Data5.2.4.2 Inability to Control Key Management from Outside Physical Protection Boundary of Hardware Security Modules5.2.4.3 Complex Integration Process5.3 Value Chain Analysis5.3.1 Research, Design, and Development5.3.2 Raw Material Suppliers5.3.3 Original Equipment Manufacturers (Oems)5.3.4 System Integrators5.3.5 Suppliers and Distributors5.3.6 Verticals5.4 Ecosystem Analysis5.5 Technology Analysis5.5.1 Commercialization of Internet of Things (Iot)5.5.2 Emergence of 5G5.5.3 Integration of Hardware Security Modules into Contactless Smart Cards5.5.4 Digital Signature5.6 Average Selling Price (ASP) Analysis5.7 Patents Analysis5.8 Trade Data5.9 Regulatory Landscape5.9.1 Regulatory Bodies, Government Agencies, and Other Organizations5.9.2 Global Regulations Focused on Fraud Prevention and Standardization5.9.3 Regulations in North America Focused on Consumer Protection5.9.4 Regulations in Europe Focused on Standardization5.9.5 Regulations in Asia-Pacific Focused on Domestic Payment Networks5.10 Porter's Five Forces Analysis5.11 Case Study Analysis5.11.1 Farmers & Merchants Bank Implements Cardonce Solution Offered by Cpi Card Group5.11.2 Rbs Deploys Fingerprint Biometric Cards for Payments5.11.3 Mastercard, Idemia, and Matchmove Partnered to Launch Biometric Cards in Asia5.11.4 Nasdaq Omx Partnered with Thales to Deliver Secure Cloud for Financial Services5.12 Key Stakeholders and Buying Process5.12.1 Key Stakeholders in Buying Process5.12.2 Buying Criteria5.13 Revenue Shift and New Revenue Pockets for Customers' Businesses
6 Hardware Security Modules Market, by Deployment Type 6.1 Introduction6.2 On-Premise6.2.1 Growing Need for Complete Control Drives6.3 Cloud6.3.1 Cost-Effectiveness Associated with Cloud-Based Hardware Security Modules
7 Hardware Security Modules Market, by Application 7.1 Introduction7.2 Payment Processing7.2.1 High Demand for Sophisticated Payment Processing Methods to Improve Electronic Transactions7.3 Code and Document Signing7.3.1 High Adoption of Hardware Security Modules for Code and Document Signing7.4 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 Vertical7.5 Authentication7.5.1 Growing Need for Hardware Security Modules in Authentication Applications7.6 Database Encryption7.6.1 Rising Focus on Protecting Data Through Encryption7.7 Public Key Infrastructure (Pki) and Credential Management7.7.1 Increasing Demand for Hardware Security Modules in Credential Management to Enable Users to Transmit Data Safely7.8 Application-Level Encryption7.8.1 Increasing Requirement for Enhancing Efficiency and Accuracy of Application-Level Encryption
8 Hardware Security Modules Market, by Type 8.1 Introduction8.2 Lan Based/Network Attached8.2.1 Lan-Based Hardware Security Module Act as Centralized Key Management System8.3 Pci Based or Embedded Plugin8.3.1 Pci-Based Hardware Security Modules Can Secure Entire Electronic Control Unit (Ecu)8.4 Usb Based or Portable8.4.1 Portable Hardware Security Modules Can Perform Encryption and Key Protection Functions8.5 Smart Cards8.5.1 Smart Cards Reduce Risk of Cybercrimes by Protecting Digital Assets
9 Hardware Security Modules Market, by Vertical 9.1 Introduction9.2 Banking, Financial Services, and Insurance (Bfsi)9.2.1 Rising Use of Hardware Security Modules to Mitigate Risks of Online Financial Fraud9.3 It & Telecommunications9.3.1 Growing Need for High Authentication and Device Security and Rising Developments in 5G Infrastructure9.4 Public Sector/Government9.4.1 Rising Need for Prolonged Data Protection Irrespective of Location9.5 Industrial Manufacturing9.5.1 Adoption of Hardware Security Modules to Exchange Data Across Multiple Business Levels9.6 Energy & Power9.6.1 Integration of Hardware Security Modules into Critical Infrastructures to Enhance Security Protocols9.7 Consumer Goods & Retail9.7.1 High Need to Secure Proprietary Information9.8 Medical & Life Sciences9.8.1 Rising Need to Share Data Only Across Trusted Partners and Devices9.9 Aerospace & Defense9.9.1 Increasing Use of Hardware Security Modules to Safeguard Critical Data9.10 Transportation9.10.1 Increasing Advancements in Connected Cars
10 Hardware Security Modules Market, by Region
11 Competitive Landscape 11.1 Overview11.2 Market Share Analysis11.3 Hardware Security Modules Market: Revenue Analysis, 2019-202111.4 Company Evaluation Quadrant, 202111.4.1 Stars11.4.2 Pervasive Players11.4.3 Emerging Leaders11.4.4 Participants11.5 Competitive Benchmarking11.5.1 Product Footprint (10 Companies)11.6 Startup/Sme Evaluation Quadrant, 202111.6.1 Progressive Companies11.6.2 Responsive Companies11.6.3 Dynamic Companies11.6.4 Starting Blocks11.7 Competitive Scenarios and Trends11.7.1 Product Launches11.7.2 Deals
12 Company Profiles 12.1 Key Companies12.1.1 Thales12.1.2 Utimaco12.1.3 Futurex12.1.4 Infineon Technologies12.1.5 Ibm12.1.6 Stmicroelectronics12.1.7 Microchip Technology12.1.8 Atos Se12.1.9 Yubico12.1.10 Swift12.2 Other Players12.2.1 Securosys12.2.2 Spyrus12.2.3 Ledger12.2.4 Ultra Electronics12.2.5 Adwebtech12.2.6 Efficient India12.2.7 Lattice Semiconductors12.2.8 Ellipticsecure12.2.9 Amazon Inc.12.2.10 Entrust Security12.2.11 Escrypt12.2.12 Sansec Technology12.2.13 Fortanix12.2.14 Jisa Softech12.2.15 Microsoft
13 Appendix
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