Hardware Security Modules Global Market Report 2024

The hardware security modules market size has grown rapidly in recent years. It will grow from $1.53 billion in 2023 to $1.74 billion in 2024 at a compound annual growth rate (CAGR) of 13.9%. The growth observed in the historic period can be attributed to several factors, including the rise in cybersecurity threats, the need for regulatory compliance, efforts towards encryption standardization, growing sensitivity of data, and heightened concerns related to national security.

The hardware security modules market size is expected to see rapid growth in the next few years. It will grow to $3.06 billion in 2028 at a compound annual growth rate (CAGR) of 15.1%. The anticipated growth in the forecast period can be attributed to factors such as the enforcement of stricter data privacy regulations, a rise in the utilization of biometric data, an increase in remote work practices, demand from emerging markets, and a shift towards as-a-service models. Key trends expected in the forecast period include a focus on digital identity protection, the expansion of 5G networks, integration with blockchain technology, an emphasis on user-friendly interfaces, increased partnerships and collaborations, and the adoption of hybrid and multi-cloud environments.

The hardware security module market is poised for growth due to the anticipated increase in data breaches and cyberattacks. Cyberattacks involve unauthorized attempts to access computer systems, while data breaches result in the theft or extraction of data without the owner's authorization. Hardware security modules (HSMs) are physical devices designed to protect data from both logical and inherent security threats, providing built-in vulnerability protection. The rising acceptance of digital payments has led to a surge in cyberattacks and data breaches, creating a heightened demand for HSMs. For example, Positive Technologies reported a 17% increase in cyberattacks in Q1 of 2021 compared to Q1 2020, and Forbes noted a 15.1% rise in the average frequency of data breaches and cyberattacks in 2021 compared to 2020. Consequently, the growth of data breaches and cyberattacks is a key driver of the hardware security module market.

The hardware security module market is expected to experience growth due to the increasing adoption of cloud-based services. Cloud-based services involve the delivery of computer services over the Internet, covering servers, storage, databases, networking, software, analytics, and intelligence. HSMs are commonly used in conjunction with cloud-based services to provide an additional layer of security for sensitive data. Eurostat reported that 41% of EU enterprises utilized cloud computing in 2021, particularly for hosting e-mail systems and storing electronic files. The adoption of cloud computing was notably high among large enterprises, with a 7% increase from 2020 to 72% in 2021. Thus, the growing adoption of cloud-based services is a significant driver of the hardware security module market.

In the hardware security module market, product innovation is a prominent trend as major companies focus on developing innovative solutions to strengthen their market position. Thales Group, a France-based technology company, introduced the IoT connection solution ELS62 in February 2022. This solution enhances reliability and security for smart devices, simplifying the digital transition for enterprises. It offers diverse connectivity options, high cybersecurity for IoT devices, and security measures to safeguard devices and data against cyberattacks through features such as strong device authentication and data encryption.

Major players in the hardware security module market are concentrating on developing innovative products, including plug-and-play security solutions, to gain a competitive advantage. Infineon Technologies AG, a Germany-based semiconductor manufacturer, launched the SLS37 V2X hardware security module (HSM) in October 2021. This plug-and-play security solution is designed for vehicle-to-everything (V2X) communication, ensuring the integrity and authenticity of messages as well as sender privacy. This innovation reflects the industry's commitment to user-friendly and effective cybersecurity solutions.

In January 2021, Utimaco GmbH, a Germany-based provider of trusted cybersecurity and compliance solutions, acquired MYHSM Ltd. to strengthen its cloud and as-a-service offerings. The acquisition focuses on accelerating Utimaco's services for the retail, banking, and financial sectors, minimizing hardware requirements, secure facilities, administration, and compliance audits for clients. MYHSM, a UK-based provider of payment hardware security modules (HSM) as a service, aligns with Utimaco's strategic goals in the cybersecurity market.

Major companies operating in the hardware security modules market report are 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, Gemalto N.V., Micro Focus International plc, Google LLC, Dell Technologies Inc., Microchip Technology Inc., Broadcom Inc., Amazon Web Services Inc., WIBU-SYSTEMS AG, Quantum Corporation, Winbond Electronics Corporation, Lattice Semiconductor, Trustwave Holdings.

Europe was the largest region in the hardware security module market in 2023. The regions covered in the hardware security modules market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hardware security modules market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The main types of hardware security modules include LAN-based or network-attached modules, PCI-based or embedded plugins, USB-based or portable modules, and smart cards. LAN-based modules operate within a local area network (LAN), connecting devices in a single physical location, such as a building or business. These modules can be deployed on-premises or in the cloud, serving various applications such as SSL (Secure Sockets Layer), TLS (Transport Layer Security), authentication, payment processing, code and document signing, application-level encryption, database encryption, public key infrastructure (PKI), and credential management. HSMs find applications across diverse industries, including banking and financial services, energy and utilities, retail and consumer products, government technology and communication, industrial and manufacturing, healthcare, and life sciences.

The hardware security modules market research report is one of a series of new reports that provides hardware security modules optical components market statistics, including hardware security modules optical components industry global market size, regional shares, competitors with a hardware security modules optical components market share, detailed hardware security modules optical components market segments, market trends and opportunities, and any further data you may need to thrive in the hardware security modules optical components industry. This hardware security modules optical components market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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