Hardware Security Module Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Type, By Deployment Mode, By Application, By Industry Vertical, By Region and Competition

Global Hardware Security Module (HSM) Market is predicted to proliferate during the forecast period, thanks to rapid digitalization and increasing uptake of advanced technologies by enterprises to meet the need for growing business along with the development of more electronic data. The hardware security module (HSM) protects cryptographic keys and manages the encryption and decryption processes. It allows businesses to protect data, identities, and transactions across several sites while enhancing performance, dependability, and scalability.

Furthermore, the rising uptake of encryption technologies among organizations is aiding the global hardware security module (HSM) market substantially. To maintain high speeds and maximize connectivity, businesses are increasingly considering more reliable and secure hardware security modules to encrypt and decrypt data. Numerous innovations conducted in cloud computing and 5G infrastructure technologies are expected to enhance the features of HSMs. This, in turn, is expected to drive the market during the forecast period.

A hardware security module (HSM) is a specialized device that conducts cryptographic functions, such as encrypting data or managing encryption keys. The growing usage of mobile banking applications and the increasing uptake of HSMs in fintech enterprises, thanks to rising digitalization, IoT trends, and the increasing need to simplify banking procedures, have led to a surge in their demand. HSMs are the cornerstone of enterprise data security. Hardware security modules' tamper resistance helps keep IT infrastructure secure from hacks and breaches while reducing the enormous expenses those disasters might cause for commercial organizations. Moreover, the rising demand for data security and the increasing number of cloud-based solutions are expected to boost the global hardware security module (HSM) market further in the near future.

Furthermore, hardware security modules are gaining popularity as businesses are facilitating critical applications to manage infrastructure with load balancing, monitoring, alerting, device clustering, and generating digital signatures to validate messages, software, and financial transactions. Hardware security modules also provide and protect sensitive data and improve application performance, and secure mobile payments, or a government organization that must protect the personally identifiable information (PII) of private citizens. The use of hardware security modules enables organizations to meet and exceed established and emerging regulatory standards for cybersecurity, including GDPR, eIDAS, PCI DSS, and HIPAA.

Increasing Demand for Hardware Security Modules for Network Privacy and Visibility Support

The current surge of digital innovation, remote work, and cloud usage has increased the demand for hardware security modules (HSM) with security, which has caused businesses to reevaluate their network architecture. HSMs are becoming increasingly popular among organizations that are eager to embrace digital transformation. Network security providers and IT enterprises are enabling HSMs to provide cryptographic keys for critical functions, such as encryption, decryption, and authentication, for the use of applications, identities, and databases. This has helped businesses increase productivity, and agility, and keep IT costs under control while also giving them an advantage in application performance and providing a high-quality user experience. The network cannot be sufficiently protected from attacks by old HSM solutions, and they provide a poor overall level of management. As a result, businesses are constantly updating their IT infrastructure to lessen the likelihood of criminal activities.

Furthermore, hardware security modules help with physical access protection and secure management of key materials, give the IT department extensive access to the hardened, enable tamper-resistant hardware devices, and make it possible to immediately identify a security assault. Therefore, the increasing demand for hardware security modules for network privacy and visibility support for sensitive data is expected to propel the hardware security module (HSM) market across the world.

Increasing Number of Cyberattacks and Data Breaches Driving Growth

Data breaches and cyberattacks are becoming more frequent, putting personal information of millions of people at risk, which increases the need to address the alarmingly rising security concerns. Data breaches have had the most severe impact in the world of cyber security in the last few years. With the surge in incidents of data security theft, there is a rise in the uptake rate of hardware security modules (HSM) across a number of industries globally. According to ITGovernance UK, a total of 116 million cyberattacks and data breaches were reported in May 2021. In 2022, more than 4,000 publicly disclosed data breaches occurred, that exposed approximately 22 billion records.

Data breaches are becoming more and more expensive for enterprises and governments as they are threatening data security and, consequently, the trust of consumers. In addition, the European Union (UN) has reported 356 breaches per day across the 27 member countries. Thus, an increasing number of cyberattacks and data breaches are likely to drive the global hardware security module (HSM) market during the forecast period.

Increasing Number of Cloud-Based Solutions to Propel Market

With the increasing awareness about the benefits of integrating cloud services, enterprises are rapidly including cloud-based solutions in their infrastructure. The technology helps deliver an effective cloud connection to the network. Hardware Security Modules (HSM) enable users to host encryption keys, carry out cryptographic operations, and take advantage of cloud service deployment without having to host and manage on-premises machines.

In addition, while shifting from a CapEx to an OpEx financial model, requirements have been changing with the widespread uptake of cloud services that are connected over the internet. As cloud services connected through the internet become more and more popular, the need for effective cloud-based HSMs is evolving. In practice, companies are compelled to rely more heavily on the cloud to properly manage the life cycle of the many cryptographic keys supporting their cloud-based applications. The number of individuals utilizing the internet has increased, as a result, the demand for cloud-based services is also rising. The hardware security module (HSM) market has greater options due to the usage of cloud-based services, which also leads to the implementation of a hybrid cloud strategy to provide extra capacity, resilience, and scalability. Therefore, the increasing number of cloud-based solutions is expected to propel the global hardware security module (HSM) market during the forecast period.

Market Segmentation

The global hardware security module market is segmented by type, deployment mode, application, and industry vertical. Based on type, the market is segmented into LAN Based/Network Attached, PCI-Based/Embedded Plugins, USB-Based/Portable, and Smart Cards. Based on deployment mode, the market is segmented into on-premises and cloud. Based on application, the market is segmented into payment processing, code & document signing, authentication, application-level encryption, database encryption, PKI & Credential Management, and Security Sockets Layer (SSL) & Transport Security Layer (TSL). Based on industry vertical, the market is classified into consumer goods & retail, Banking Financial Services & Insurance (BFSI), aerospace & defense, public sector/government, energy & power, industrial manufacturing, medical & life sciences, transportation, and IT & telecommunications.

Company Profiles

ST Microelectronics NV, Ultra Electronics Holdings plc, Thales Group, IBM Corporation, Entrust Corporation, Infineon Technologies AG, Synopsys Inc., Exceet Secure Solutions GmbH, ATOS SE, and Cavium, Inc. are the major players that are driving the global hardware security module (HSM) market.

Report Scope:

In this report, the global hardware security module (HSM) market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Hardware Security Module (HSM) Market, By Type:

• LAN Based/Network Attached
• PCI-Based/Embedded Plugins
• USB-Based/Portable
• Smart Cards

Hardware Security Module (HSM) Market, By Deployment Mode:

• On-premise
• Cloud

Hardware Security Module (HSM) Market, By Application:

• Payment Processing
• Code & Document Signing
• Authentication
• Application-Level Encryption
• Database Encryption
• PKI & Credential Management
• Security Sockets Layer (SSL) & Transport Security Layer (TSL)

Hardware Security Module (HSM) Market, By Industry Vertical:

• Consumer Goods & Retail
• Banking Financial Services & Insurance (BFSI)
• Aerospace & Defense
• Public Sector/ Government
• Energy & Power
• Industrial Manufacturing
• Medical & Life Sciences
• Transportation
• IT & Telecommunications

Hardware Security Module (HSM) Market, By Region:

• Asia-Pacific
• China
• Japan
• India
• Australia
• South Korea
• North America
• United States
• Canada
• Mexico
• Europe
• United Kingdom
• Germany
• France
• Spain
• Italy
• Middle East & Africa
• Israel
• Turkey
• Saudi Arabia
• UAE
• South America
• Brazil
• Argentina
• Colombia

Competitive Landscape

• Company Profiles: Detailed analysis of the major companies present in the global hardware security module (HSM) market.

Available Customizations:

• With the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).