The Global Hardware Security Modules Market Is Projected To Reach 3.1 Billion By 2030, With A CAGR Of 14.4%.

Hardware Security Module (HSM) Market Overview:

A hardware security module (HSM) is a physical device that protects sensitive data from unauthorized access. It is used for database encryption, authentication, code and document signing, payment processing, decryption, and application-level encryption. It also handles cryptographic keys for various important operations such as authentication, decryption, and encryption. For example, businesses use hardware security modules to protect valuable trade secrets by ensuring that only authorized personnel have access to systems to conduct cryptographic key transactions. Demand for high security is expected to support the development of the global hardware security module market in the future.

For SSL connections, the hardware security module system acts as a hardware cryptographic accelerator, and the asymmetric key process can benefit from significant CPU offload. Elliptic Curve Cryptography (ECC) is also supported by most hardware security modules, allowing for better encryption despite shorter key lengths. These modules comply with globally recognized standards and certifications related to infrastructure and security for applications such as GIE CB, PCI-DSS, EU restrictions, eIDAS, ANSSI certification and FIPS 140, among others. Security Level 4 is the highest level of FIPS 140 certification that can be achieved. To prevent bus discovery and manipulation, hardware security modules are typically packaged in tamper-resistant, tamper-resistant, or tamper-evident packaging. Also includes modules containing one or more cryptographic processor chips or a mixture of chips. Growing demand for the product is expected to propel the development of the global hardware security module market in the near future.

Hardware Security Module (HSM) Market size, estimates, and forecasts are provided in terms of sales volume (K Units) and revenue (million USD), with historical and forecast data for the period 2017 to 2030, with 2022 being considered as the base year. This report segments the global Hardware Security Module (HSM) Market in detail. Regional market sizes related to products by type, by application, and by the player are also delivered. In estimating the size of the market, we took into account the impact of COVID-19 and the Russian-Ukraine war.

Key Market Updates:

• In February 2022, Securosys and Randtronics signed a strategic agreement to integrate the former CloudsHSM portfolio with Randtronics' Data Privacy Manager (DPM). Enterprises can use Securosys' hardware security modules with Randtronics' DPM to securely manage encryption keys across the organization.
• In August 2020, Cypress Semiconductor Corporation was acquired by Infineon Technologies. The acquisition will allow the two companies to offer clients a comprehensive portfolio to connect with and advance digitization in the digital world.

Major Market Segments Covered in Hardware Security Module (HSM) Market Industry Research:

Market Key Players:
IBM Corporation, Thales Group, Utimaco Safeware., Atos SE, STMicroelectronics, Microchip Technology Inc., Hewlett Packard Enterprise, Gemalto NV, QLogic Corporation, and Futurex LP, And Others.

By Type:

• Local Interface
• Remote Interface
• USB Token
• Smart Cards
• Other

By Application:

• Payment Processing
• Code and Document Signing
• SSL and TLS
• Authentication
• Database Encryption
• PKI or Credential Management
• Application-Level Encryption
• Other

• BFSI
• Healthcare & Life Sciences
• Manufacturing
• Retail & CPG
• Government & Defense
• Energy & Utilities
• Others

By Region:

Japan is expected to see high demand for hardware security modules due to the urgent need for data protection. Growing use of HSMs by organizations across the country for encryption, decryption and key management applications will also drive growth.

Most small and medium-sized enterprises in Japan are moving towards cloud-based hardware security modules as deployment of these modules is considered more realistic and cost-effective. As a result of the factors mentioned above, sales in Japan are estimated to grow at a CAGR of 21.6% in East Asia during the forecast period.

Demand for hardware security modules in the US is expected to grow at a CAGR of 15.5% over the forecast period 2022-2032. This growth is due to the presence of many major hardware security module manufacturers in Korea, such as Entrust Corporation and IBM.

Major players are focusing on new product development and expansion to gain a competitive edge in the US. Additionally, pharmaceutical companies are expected to see a surge in deployment of HSM solutions that help reduce shipping costs and accelerate drug development through code and document signing capabilities. .

For example, in December 2021, US-based technology company Entrust Corporation announced the geographic expansion of its nShield as a Service hardware security module (HSM) product. The company has opened two new data centers in Australia to meet high demand for its cloud services. These expansion plans carried out by well-known players across the US are estimated to drive the market.

Businesses in the UK are moving towards digital transformation as strong levels of security and advanced fraud prevention systems become increasingly important. The retail banking industry is in charge of vast amounts of data, including customer personal information and bank information. Therefore, sophisticated security measures are required to protect sensitive data.

In 2021, the UK accounted for nearly 18.8% of the European hardware security module market share. Retail banks in the country are increasing their investments in hardware security modules to cryptographically protect confidential information.

These modules also allow customers to conduct secure transactions using their preferred payment method while protecting their business from security breaches. Therefore, rising demand for hardware security modules in retail banking will fuel growth in the UK.

Significant Market Dynamics:

Drivers:

The growing popularity of the Internet of Things (IoT) has driven the growth of the global hardware security module market. This includes Alexa, a popular and sought-after device. The advent of the internet also brought about the emergence of the darknet. This allows many people to hack the network, compromising the security of many organizations.

Demand for devices and technologies capable of stopping cyberattacks, data breaches, online banking, digital payments (e.g. PayPal), telecommunications, healthcare, life sciences, cloud-based services and cryptocurrencies has surged in recent years. This has increased the demand for hardware security modules capable of generating online security mechanisms such as cryptographic keys, applications and data.

Opportunities:

Many companies in the global hardware security module market know that they can make big bucks. That's why they're investing millions of dollars to develop next-generation modules that can generate keys and devices/applications that will better protect your data and information online.

Restraints:

Hardware security modules are expensive. It is currently only available to very large companies, which hinders the growth of the hardware security module market.

Challenges:

There is no standardization in the industry. This is especially true in developing countries. However, people in developed countries have more standard modules that can create more standardized and homogenized modules, keys, devices and applications.

Hardware Security Module (HSM) Market report scope:

Crucial Points from this Hardware Security Module (HSM) Market Report

• Estimate Hardware Security Module (HSM) Market potential through analyzing growth rates (CAGR %), Volume (Units) and Value ($M) data given at country level - for product types, applications and by different industry verticals.
• Understand the supply chain in depth on the value growth at each step, in order to optimize value and bring effectiveness in your processes.
• Know the different dynamics affecting the market - challenges, key driving factors and opportunities.
• Get a quick viewpoint on the Hardware Security Module (HSM) Market entropy - M&A's, deals, partnerships, product launches of all key companies for the historical 5 years.
• Estimate the supply-demand gaps, import-export data and regulatory landscape for more than top 20 countries worldwide for the market.
• Get complete insights on your competitor performance - market shares, strategies, financial benchmarking, product benchmarking, SWOT and more.
• Study the sales and distribution channels over key geographies to improve top-line revenues.