Hardware Security Modules Market Trends

Global Hardware Security Modules (HSM) Market Overview:

Hardware Security Modules (HSM) Market Size was valued at USD 1.34 billion in 2023. The hardware security modules (HSM) market industry is projected to grow from USD 1.49 billion in 2024 to USD 3.4 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.9% during the forecast period (2024 - 2032). 

Increased worries about data protection in all worldwide operating data-sensitive firms are the main market drivers for the hardware security module (HSM) market's expansion. Additionally, due to complete data protection, the increased need for hardware security modules (HSM) will soon occur.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Hardware Security Modules (HSM) Market Trends

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  Rising numbers of cyberattacks and data breaches propel the market growth

  
  

A data breach involves taking information from a system without the owner's knowledge or consent. Large businesses or organizations are frequently the targets of data breaches. The information that was taken could be delicate, exclusive, or private (such as credit card numbers, customer data, trade secrets, or national security information). 

Despite better security, government and healthcare institutions continue to be the main targets of cyberattacks because of the priceless personal information they gather and may sell. A report by the U.K. government indicates that 39% of companies will experience cyberattacks in 2021. Phishing attacks were the most common (83%). A denial of service, malware, or ransomware attack was among the more advanced attack types described by nearly 1 in 5 (21%) of the 39%. Despite its low incidence, corporations have deemed ransomware a serious threat, and 56% of companies have a policy against paying ransoms. Similar data theft and breach incidents have occurred in India in recent years. 

Companies that allow workers to work from home (WFH) are ill-equipped to guard against unwanted access to or use of their data. This makes them a weak target for cybercriminals, leading to increased cybersecurity breaches. Consider the Big Basket data breach in 2019, where the personal information of about 20 million users was made available for purchase on a forum on the dark web. Cyberattacks against India rose 37% in the first quarter of 2020 compared to the same period in 2019. Thus, one of the key drivers boosting the market for hardware security modules (HSM) is the rise in data breaches and cyberattacks. Thus, this factor is driving the market CAGR.

Furthermore, the adoption of contemporary technologies like IoT and cloud computing is fueling an increase in the need for information and data security, which is driving the growth of the hardware security module market. The preservation of authenticity, client privacy, and data and communication become the main topics to concentrate on with IoT. All industries have as a top priority securing these HSM. A high-performance security device, the new Horus HSM from ATOS SE, was launched in 2019 with the primary goal of securing the IoT environment utilizing cryptographic features. So, it is anticipated that this aspect will accelerate hardware security modules (HSM) market revenue globally.

Hardware Security Modules (HSM) Market Segment Insights:

Hardware Security Modules (HSM) Type Insights

The hardware security modules (HSM) market segmentation has been segmented by type into LAN-based HSM, PCIe-based and USB-based. The electric scooter segment dominated the hardware security modules (HSM) market data in 2023 and is projected to be the faster-growing segment during the forecast period, 2024-2032. LAN-based HSMs are a particular kind of hardware security module (HSM) that are deployed on servers and accessible via LAN. These devices assist in securing encryption keys by keeping encryption keys in secure hardware and segregating them from their applications on the mainframe or any other computer system.

Hardware Security Modules (HSM) Application Insights

The hardware security modules (HSM) market segmentation is based on application, payment processing, code, and document signing and authentication. The payment processing segment dominated the hardware security modules (HSM) market revenue in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030 because of the growing development of online banking. Payment HSM is a piece of hardware primarily used in the retail banking sector to protect the client PINs and cryptographic keys used in the issue of magnetic stripe and EMV chip cards. Payment HSMs are capable of supporting all popular card scheme payment applications.

Figure 2: Hardware Security Modules (HSM) Market by Application, 2021 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Hardware Security Modules (HSM) End-Users Insights

Based on end-users, the hardware security modules (HSM) market data, is segmented into government, energy and utilities, and healthcare. The government segment dominated the hardware security modules (HSM) industry in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. The public sector constantly makes adjustments to new technology as they emerge. This involves creating and using HSM, which protects data and programs from malware, hackers, and other threats.

Hardware Security Modules (HSM) Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American hardware security modules (HSM) market accounted for USD 0.5 billion in 2021 and is expected to exhibit a 43.20% CAGR during the study period due to the growing use of hardware security modules (HSM) in a variety of end-use sectors, including BFSI, retail, telecom, and government entities, across countries around the region, particularly in the United States and Canada.

Further, the major countries studied in the market report for hardware security modules (HSM) are: The U.S., Canada, Germany, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: HARDWARE SECURITY MODULES (HSM) MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

European hardware security modules (HSM) market is expected to grow at a significant CAGR from 2022 to 2030. In the region, especially in the UK, Germany, and France, the introduction of cutting-edge technologies like 5G, LoT, and Artificial Intelligence (A.I.) has increased the demand for network security. In recent years, several cyberattacks have targeted the European banking and retail industries. For instance, a cyberattack in April 2022 led The Works, a U.K. company, to shut down its locations and stop replenishment deliveries. Moreover, Germany hardware security modules (HSM) market held the largest market share, and the U.K. hardware security modules (HSM) market was the fastest-growing market in this region.

Asia Pacific hardware security modules (HSM) market accounts for the second-fastest growing market share because of the growth of I.T. companies and an increase in cyberattacks across the region, particularly in China, Japan, and India. According to data, Asia was the region most frequently attacked by cyberattacks in 2021. Companies have increased their investments in this region as a result of the region's high demand for network security and hardware security modules (HSM) due to increased concerns about cyberattacks. Further, the China hardware security modules (HSM) market held the largest market share, and the India hardware security modules (HSM) market was the fastest-growing market in the region

Hardware Security Modules (HSM) Key Market Players & Competitive Insights

Major market players are spending a lot on R&D to increase their product lines, which will help the hardware security modules (HSM) industry grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, market developments and collaboration with other organizations. Competitors in the industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market industry.

One of the primary business strategies manufacturers adopt in the hardware security modules (HSM) industry to benefit clients and expand the sector is manufacturing locally to reduce operating costs. In recent years, hardware security modules (HSM) industry has provided medicine with some of the most significant benefits. The hardware security modules (HSM) market major player such as Gemalto NV (Amsterdam), Thales e-Security Inc. (U.S.), Utimaco GmbH (Germany), International Business Machines Corporation (U.S.), FutureX (U.S.), Hewlett-Packard Enterprise Development L.P. (U.S.) SWIFT (Belgium), Atos S.E. (France), Ultra-Electronics (U.K.) and Yubico (U.S.).

The world's biggest and most prestigious brands rely on Thales e-Security Inc.'s Data Protection and Identity and Access Management solutions to safeguard their information and intellectual property while enabling safe access to applications and data. In February 2022, Microsoft Azure Payment Hardware Security Module (HSM) will be delivered with the aid of payShield 10K technology, according to Thales Group (HSM). This brand-new service secures crucial real-time financial transactions carried out in Azure using cryptographic key operations.

With offices in Aachen (Germany) and Campbell, California, UTIMACO is a trusted platform provider of cybersecurity and compliance solutions and services (USA). In June 2021, Realsec was acquired by Utimaco. The Utimaco group will benefit from Realsec's key management, HSM, compliance, and regulations expertise.

Key Companies in the hardware security modules (HSM) market includes

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  Gemalto NV (Amsterdam)

  
  


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  Thales e-Security Inc. (U.S.)

  
  


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  Utimaco GmbH (Germany)

  
  


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  International Business Machines Corporation (U.S.)

  
  


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  FutureX (U.S.)

  
  


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  Hewlett-Packard Enterprise Development L.P. (U.S.) SWIFT (Belgium)

  
  


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  Atos S.E. (France)

  
  


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  Ultra-Electronics (U.K.)

  
  


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  Yubico (U.S.)

  
  

Hardware Security Modules (HSM) Industry Developments

October 2023: Microchip Technology unveiled a new family of PIC32CZ CA 32-bit microcontrollers with the introduction of a 300MHz Arm Cortex-M7 core, contained Hardware Security Module (HSM), Flash memory options and a wide diversity of interfaces for greater versatility. This new series has the PIC32CZ CA90 that has HSM onboard and the PIC32CZ CA80 without the HSM embedded in it. The Sales of the Embedded HSM Solidan Group Inc. had targeted security for consumers and industrial applications aboard the PIC32CZ CA90. As a secure device, the HSM employs a standalone MCU that runs the firmware and security functions, including but not limited to secure key storage, hardware secure boot, true random number generator, and cryptographic acceleration.

June 2022: IBM has signed a contract with Siam Commercial Bank, a Thailand bank, to enhance the security of numerous transactions and improve the quality of service provided to users. The partnership might capitalize on IBM’s unmatched capacity to build secure and resilient corporate platforms to support critical applications and information on hybrid multi cloud while minimizing risks and illegitimate activities in monetary transactions.

February 2022: Securosys and Randtronics formalized a partnership wherein Securosys would add the CloudsHSM portfolio into the data privacy manager (DPM) of Randtronics. Businesses can utilize the hardware security module of Securosys along with DPM of Randtronics in a secure manner to control their keys across the organization.

January 2022: Aurix TC4x, which Infineon Technologies introduced, offers improved connection in addition to cutting-edge safety and security. New SOTA (Software Over the Air) features also help automakers meet customer requests for a speedy and secure car-to-cloud link, enabling updates in the field as well as diagnosis and analysis while the vehicle is being driven.

Hardware Security Modules (HSM) Market Segmentation:

Hardware Security Modules (HSM) Type Outlook (USD Billion, 2018-2032)

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  LAN-Based HSM

  
  


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  PCIe-Based

  
  


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  USB-Based

  
  

Hardware Security Modules (HSM) Application Outlook (USD Billion, 2018-2032)

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  Payment Processing

  
  


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  Code and Document Signing

  
  


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  Authentication

  
  

Hardware Security Modules (HSM) End-Users Outlook (USD Billion, 2018-2032)

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  Government

  
  


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  Energy and Utilities

  
  


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  Healthcare

  
  

Hardware Security Modules (HSM) Regional Outlook (USD Billion, 2018-2032)

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  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  

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  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  

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  Asia-Pacific

  
  
  
  
  • China
  
  
  
  

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  Japan

  
  


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  India

  
  


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  Australia

  
  


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  South Korea

  
  


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  Australia

  
  


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  Rest of Asia-Pacific

  
  




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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America