The Global Embedded Security Market Size Was Valued At USD 8.04 Billion In 2021. The Market Is Projected To Grow From USD 8.23 Billion In 2022 To USD 17.03 Billion By 2030, Exhibiting A CAGR Of 10.9% During The Forecast Period.

Embedded Security Market Overview:

The global COVID-19 pandemic has been unprecedented and shocking, and demand for embedded security is lower than expected in all regions compared to levels before the pandemic. Based on our research, the global market dropped by 9.2% between 2019 and 2020.

Embedded security is a way to protect software that runs on embedded systems in a strategic way. It is a piece of hardware that is used to work with software. The systems are set up this way so that they can do specific security tasks. It is mostly used in process control units, aircraft, consumer electronics, hybrid cars, and other appliances. It is an extremely reliable system that can deal with all kinds of security system uncertainty. It is hard to change or update the firmware inside the security system. But most of the time, the systems are made to last longer than 15 years. With the rise of the Internet of Things (IoT) and industrial automation, the capacity of embedded platform security systems is changing as the number of cyberattacks grows quickly. With the rise of connected devices, embedded device security has become more important.

In the last few decades, the global connected security market has grown a lot, and it is expected to keep growing slowly over the next few years. However, a rise in COVID-19 cases forces all countries to lock down. This caused factories to stop making things and messed up the supply chains for raw materials in many countries. Also, the growing digital revolution and advanced technology, like IoT and connected technology, in developing countries are expected to drive the growth of the embedded security market over the next few years.

Market Dynamics:

Latest Trends:

IoT applications are increasing, which is driving up the demand for embedded security.

Technology is growing faster than ever before right now. Every day, technology changes and brings us new tools and ways of doing things. It's not just about computers and apps on phones. It's all about AI and Internet of Things (IoT) devices, which are used a lot in people's daily lives. IoT is becoming more and more important in every industry. It is used in industrial automation, medical devices, aeroplanes, smart home units, cars, and many other places. Authentication and managing who has access have become very important for a smart home. This growing use of IoT makes it more likely that connected devices will have security problems. This also makes it more likely that cyber threats from the outside will attack running systems, which will hurt the way the device works and cause data loss. In order to avoid this, more and more embedded security devices are being used.

Driving Factors:

Market Value to Surge Due to more people wanting security to be built into electric and hybrid vehicles,

The market for electric cars keeps growing and getting more mature every day. People are actively looking for cars that don't use traditional fossil fuels. These cars should be easy on both your wallet and the environment. To meet all of these needs, more and more places to charge electric cars must be set up at homes and on roads. To protect their critical infrastructure, it is important that this charging point is safe. It's hard to handle all of the security problems in the system because the electric vehicle and charging point have complicated designs and pose different safety risks. This problem can be fixed with the help of an embedded device security system. With more embedded and connected software in cars, it's important to make sure that electric vehicles are safe. The need for embedded device security hardware in electric vehicles grows as the number of electric vehicles and connected devices in smart and hybrid cars goes up.

Restraining Factors:

Industry growth will be slowed down Due to the lack of skilled workers and the high cost of starting up,

In recent years, this system has grown in popularity. But the basic price of a single physical security device and a single communication security device is higher than the price of a standard security system. The internal parts of a security system, like the transmitters, receivers, and sensors, are more expensive, which directly affects the main retail price of the system. Also, SME industries and individual users can't afford to update their security systems or use the new embedded technology because it's too expensive. Also, the lack of skilled workers who are needed to make embedded devices could slow the growth of the market over the next five years.

Segmentation Analysis:

By Component Analysis:

Because advanced security technology for connected devices is being used more and more in the automotive industry, the hardware segment had the most sales and revenue in 2021, and this trend is expected to continue for the rest of the forecast period. It's because more and more connected and embedded devices are being used in aerospace, defence, and services, which offers the best growth prospects with the highest CAGR over the forecast period.

By Application Analysis:

In 2021, the payment segment made the most money. This is because more and more people want secure payment systems in banking and finance systems. In developing countries like India, more money is being sent online through mobile devices. With more people paying for things online, there will likely be more demand for payment security. The authentication segment will come after this. This will keep happening during the time frame predicted. Due to the growing use of social media and online content creation for digital marketing, the content protection segment will have the highest CAGR over the next five years.

By End-user Analysis:

Based on the end user, the market is split into automotive, healthcare, consumer electronics, telecommunications, aerospace and defence, and other.

Because this security technology has many benefits for aerospace and defence security processes, the aerospace and defence segment led the market in 2021. For hardware security and protection in defence equipment, many aerospace and defence companies are choosing embedded device security systems. This is what drives the global market. The automotive segment is expected to follow the same path as the aerospace and defence segment, which is expected to help it reach the highest CAGR over the next few years. Also, the consumer electronics and telecommunications segment makes a lot of money because it uses a lot of authentication devices, which makes it a good place to make money on the global market. But the healthcare segment is expected to grow slowly over the next few years.

Regional Insights:

In 2021, the Asia-Pacific market was worth $4.35 billion USD, and it is expected to keep growing because it is the largest market in the world. The market in the Asia-Pacific region is being driven by the growing use of embedded device security and critical infrastructure protection devices in the aerospace and defence sector and the auto industry. Also, the best companies are using business strategies like growing their businesses, working together, and making new products, which is helping to move the market in the Asia-Pacific region.

China ruled the Asia-Pacific region in 2021 because IoT was used more and more in China.

China makes the most money in the Asia-Pacific region. According to an analysis by Fortune Business Insights, China will keep doing this over the next few years. China is in the lead because it has a lot of factories that make sensors and semiconductors. It is also quickly adopting cutting-edge technologies, like connected device security and end-to-end IoT security, in its day-to-day manufacturing operations, which is helping to grow the market.

Some of the best companies are supporting different business strategies, such as partnerships, mergers, and business growth. China is a centre for making sensors for embedded devices around the world, which is driving the growth of the market in China.

During the period covered by the forecast, Asia-Pacific is expected to grow the most. It's because China and Japan are home to some of the best companies in the world. Also, there are more and more SMEs and companies that make security equipment in developing countries like Japan, South Korea, and Singapore. The market in the region is being driven by the growing use of IoT in the power, energy, and utility industries. Some local government agencies have been working on embedded and Internet of Things (IoT) security in order to drive the market in the area.

In North America, the U.S. market will grow a lot over the next few years because defence, aerospace, and manufacturing in both Canada and the U.S. are using more modern technology.

In Europe, Germany dominated the market in 2021 and will continue to do so over the next few years. This is because Germany is the centre of the manufacturing industry and has a lot of IoT and connected devices, which is driving the use of connected security in the country. Also, the country is expected to have the highest CAGR during the period of the forecast. This is because it has a lot of R&D and manufacturing facilities.

The growth of the markets in South America, the Middle East, and Africa is moderate because people don't use modern technology as much and there aren't enough skilled workers to develop and make security systems.

Scope Analysis

Recent Development:

• May 2022 - STMicroelectronics, which provides embedded and cybersecurity services and a range of semiconductor products for the automotive and aerospace sectors, has partnered with Microsoft Corporation. The partnership integrates Microsoft Azure RTOS and IoT middleware with ST's ultra-low-power STM32U5 microcontroller (MCU) and provides a reliable platform module to protect the embedded architecture of IoT systems.
• May 2022 – Advantech, a provider of automation and Internet of Things (IoT) technology, launches the UNO embedded automation computer platform. This newly launched platform comes pre-installed with Canonical's Ubuntu operating system (OS) with enhanced security and edge features for IoT systems.
• November 2021 - STMicroelectronics, a provider of embedded and cybersecurity services, has introduced a next-generation secure microcontroller for biometric system-on-card (BSoC) and dynamic card verification (dCVV) solutions. This solution enhances the security of various banking and finance-related services. This circuit of additional connectivity and energy harvesting is utilized by biometric and dCVV systems.
• February 2021 - Secure IC, a provider of end-to-end cybersecurity solutions and a trusted platform for connected objects and embedded systems, has partnered with MosChip Technologies, a provider of semiconductor and system design services. This strategic move provides turnkey ASIC solutions and expands global IC security solutions in India.
• February 2021 - NXP Semiconductor, providing semiconductor and IoT-based services to a wide range of industries, has launched a new comprehensive EdgeLock 2GO IoT Services Platform designed for the deployment and maintenance of IoT devices. We help our customers safely manage all their embedded systems.

Market Segmentation

By Component:

• Hardware
• Service
• Others

By Application:

• Payment
• Authentication
• Content Protection
• Others

By End-user:

• Automotive
• Healthcare
• Consumer Electronics
• Telecommunications
• Aerospace & Defense
• Others

By Companies:

• ADVANTECH CO. LTD. (Taiwan)
• ANALOG DEVICES INC (U.S.)
• BAE SYSTEMS PLC (U.K.)
• BROADCOM INC (U.S.)
• CISCO System (U.S.)
• Infineon Technologies AG (Germany)
• STMicroelectronics (Switzerland)
• NXP Semiconductors (Netherlands)
• IBM Corporation (U.S.)
• MCAFEE LLC (U.S.)
• Microchip Technology (U.S.)
• Others