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Embedded Security Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 120 Pages
  • April 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 5025963
The Embedded Security Market is expected to register a CAGR of 9.7% over the forecasted period. The increasing need for embedded security solutions in various applications such as wearables, smartphones and tablets, automotive, smart identity cards, industrial, payment processing and cards, and computers are driving the growth of this market. Furthermore, the burgeoning Bring Your Own Device (BYOD) trend is boosting global demand for embedded security solutions.

Key Highlights

  • Further, to safeguard the processing and cardholder data, embedded security is implemented. The usage of embedded security serves to reduce the danger of data breaches, which can result in financial losses and reputational damage. It also aids in meeting the criteria of the Payment Card Industry Data Security Standard (PCI DSS). Secure elements, Trusted Execution Environment (TEE), and tamper-resistant hardware is examples of embedded security used in payment processing and cards. These embedded security solutions prevent cardholder data from being compromised by attackers, among other things.
  • Technology is advancing faster than ever before. Every day, technology advances and introduces new approaches and functions. It is not just about computers and mobile applications. It is all about artificial intelligence and Internet of Things-based gadgets, widely employed in everyday human life. The rise of IoT is spreading across all industry sectors. It is utilized in various applications, including industrial automation, healthcare equipment, aviation, wearable technologies, smart home units, automobiles, and others. The growing use of IoT raises the possibility of different security vulnerabilities with connected devices. This also raises the likelihood of external cyber threats attacking running systems, causing the device to malfunction and cause harm. Also, embedded security devices are on the rise to avoid this condition.
  • The market for electric vehicles is constantly evolving and maturing. Customers are aggressively seeking vehicles that do not use traditional fossil fuels. These vehicles should be both cost-effective and environmentally beneficial. Also, to meet these needs, an increasing number of electric charging stations must be established in homes and roadways. This charging station's security is vital to protect its critical infrastructure. The complicated design and multiple safety concerns in electric vehicles and charging points make managing all security challenges in the system tough. Embedded device security systems help with this problem. Electric vehicle security is critical due to cars' rising quantity of embedded and connected software.
  • Furthermore, the Mastercard New Payments Index report indicated that 94% of Saudi Arabian consumers would consider using at least one emerging payment method, such as cryptocurrency, biometrics, contactless, or QR code, in the last year. Furthermore, 68% of respondents reported trying a new payment method, which they wouldn't have under normal circumstances. The COVID-19 pandemic has pushed the country's population to try alternative payment methods and reap the benefits of timeliness and convenience. This would have affected the studied market positively.
  • This system has gained popularity in recent years. However, the basic cost of a single physical security device plus a communication security device is more than the cost of a traditional security system. Internal components like transmitters, receivers, and sensors utilized in security systems are more expensive, directly impacting the system's primary selling price. Furthermore, renewing existing security systems and adopting new integrated technology is not cost-viable for SME enterprises and individual users.

Embedded Security Market Trends

Adoption of Wearable Devices in Healthcare is Expected to Drive the Market

  • According to Gallup's annual Health and Healthcare survey, 90% of American consumers said they are currently using a wearable fitness tracker, and the same percentage stated that they currently use a mobile health application. By combining the present use with the percentages of Americans that claim, in the past, they have used such devices, it becomes clear that at some point, one in three Americans use a fitness tracker such as a wristband or smartwatch (34%) or tracked their health statistics on the phone or tablet application (32%).
  • According to a study published in Nature Medicine, Wearable fitness trackers were designed to detect COVID by building a system that detects 80% of pre-symptomatic and asymptomatic infections. The study involved more than 3,300 adults ages 18-80 who installed the researchers' app, called MyPHD, on their Android or Apple devices. The app collected data from the wearables they already had and transferred it to a secure cloud server where the researchers could analyze the data. The wearables included Fitbits, Apple Watches, Garmin devices, and other gadgets compatible with either Apple's HealthKit or the Google Fit platforms.
  • Further, technology services firm Vee Technologies and Sona Group of educational institutions recently signed an agreement with Toronto-based University Health Network (UHN) to develop smart fabric-based wearables. This initiative will help develop smart textiles and garments that can support the growing needs of the healthcare sector in Canada. The collaboration agreement seeks to contribute to FIBRE, a research initiative by The University Health Network (UHN), a public research and teaching hospital.
  • In April last year, Vuzix Corporation announced its collaboration with Ohana One, a global surgical training nonprofit organization that aims to cultivate high-quality surgical and anesthesia programs in developing areas worldwide, and TeleVU, an Ontario-based technology company, offering innovative AR, AI, and IoT solutions focussing specifically on healthcare, and provide critical support to healthcare personnel in war-torn Ukraine. For its part, Vuzix also mentioned donating several M400 smart glasses, running TeleVU software, and being administered through Ohana One's ongoing borderless mentor/mentee effort.
  • According to the Cisco system, the global number of linked wearable gadgets has more than doubled in three years, rising from 325 million in 2016 to one billion in the last year. Such an increase in wearable devices is expected to drive the market.

North America Accounted for Significant Share

  • North America accounts for a significant share as the growing concern for protecting critical infrastructure, and sensitive data has increased government intervention in recent years. Thus, government initiatives, such as specific budget allocations and mandated security policies, are expected to drive the market of embedded security in North America.
  • In March last year, Aware, Inc., a biometric authentication firm that uses proven and trusted adaptive authentication to solve everyday business difficulties, announced cooperation with MIRACL, a cybersecurity software company specializing in single-step, secure multi-factor authentication. Aware anticipates that this collaboration would allow it to expand its cloud-based biometric authentication system to protect against data breaches and ransomware, which are ongoing concerns in many industries, including financial services.
  • Similarly, To protect their system from intrusions, dealerships, and Cars.com implemented a two-step login process. According to Helion Technologies, several insurers need it as a requirement for dealership cybersecurity coverage. Further, the new budget spending for Canadian infrastructure protection is marked at USD 144.9 million over five years, including Canada's critical cyber systems, including sectors in the finance, telecommunications, energy, and transport sectors, which further drives the demand for embedded security solutions.
  • In December last year, Apple launched three enhanced security features to secure user data in the cloud, marking the latest step in the company's continuous endeavor to give users even more robust solutions to protect their data. Users can utilize iMessage Contact Key Verification to ensure they are connecting only with the people they want to. Users can use Security Keys for Apple ID to require a physical security key to sign in to their Apple ID account.
  • The Health Insurance Portability and Accountability Act, a federal statute of the United States, reported the increase of breaches by 25% year-over-year in the Healthcare Data Breach Report, with 29,298,012 healthcare records breached. Such an increase in data breaches would drive the studied market.

Embedded Security Market Competitor Analysis

The embedded security market is highly fragmented, and the major players have used various strategies such as new product launches, expansions, agreements, partnerships, acquisitions, and others to increase their footprints in this market, which caters to an intense rivalry in the market. Key players are Infineon Technologies AG, STMicroelectronics N.V., etc. Recent developments in the market are seen. In August 2022, ForgeRock established a strategic alliance with Secret Double Octopus (SDO) to bring ForgeRock's robust passwordless and Multi-factor Authentication (MFA) features to enterprise workstations and infrastructure. For the time being, ForgeRock will use SDO technology to provide a uniform MFA experience for workers, contractors, and vendors. ForgeRock Enterprise Connect, the new solution, connects effortlessly with any ForgeRock deployment option, allowing organizations to gain increased security for workstations, databases, VPNs, and servers.

In April 2022, Friend MTS, a global content protection company, has announced several new technology agreements as it expands its range of complementary, best-in-class anti-piracy and content security products. These collaborations will enable Friend MTS and its partners to provide fully integrated, end-to-end content protection solutions to present and future customers. Friend MTS collaborates with industry experts to provide customers with the best technical and commercial solutions worldwide. Axinom and castLabs are the newest companies to join the Friend MTS partnership program.

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Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growing IoT Applications Increases the Need for IoT Security
4.2.2 Adoption of Wearable Devices in Healthcare
4.3 Market Restraints
4.3.1 Low Demand Due to Impact of COVID-19
4.3.2 Non-Adherence to Government Regulations Due to Lack of Auditing
4.4 Industry Value Chain Analysis?
4.5 Industry Attractiveness - Porter Five Forces
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
5.1 Component Type
5.1.1 Hardware
5.1.2 Software
5.1.3 Service
5.2 Application
5.2.1 Payment
5.2.2 Authentication
5.2.3 Content Protection
5.2.4 Other Applications
5.3 End-User
5.3.1 Automotive
5.3.2 Healthcare
5.3.3 Consumer Electronics
5.3.4 Telecommunications
5.3.5 Aerospace & Defence
5.3.6 Other End-Users
5.4 Geography
5.4.1 North America United States Canada
5.4.2 Europe Germany United Kingdom France Rest of Europe
5.4.3 Asia-Pacific India China Japan Rest of Asia-Pacific
5.4.4 Rest of the World Latin America Middle East and Africa
6.1 Company Profiles
6.1.1 Infineon Technologies AG
6.1.2 STMicroelectronics N.V.
6.1.3 Texas Instruments Inc.
6.1.4 McAfee, LLC
6.1.5 Microchip Technology Inc.
6.1.6 Intellias Ltd.
6.1.7 Karamba Security Ltd.
6.1.8 Samsung Electronics Co.
6.1.9 Idemia Group
6.1.10 Rambus Incorporated

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Infineon Technologies AG
  • STMicroelectronics N.V.

  • Texas Instruments Inc.
  • McAfee, LLC
  • Microchip Technology Inc.
  • Intellias Ltd.
  • Karamba Security Ltd.
  • Samsung Electronics Co.,
  • Idemia Group
  • Rambus Incorporated