The hardware security module market size is projected to reach US$ 3.85 billion by 2031 from US$ 1.36 billion in 2023. The market is estimated to record a CAGR of 13.9% during 2023-2031. The rising adoption of the 5G network is likely to remain one of the key trends in the market.
Many large-sized businesses and corporations work with a huge volume of sensitive and confidential data. The demand for HSM has grown in response to enhanced data protection as a result of rising cases of cyberattacks. Thus, the growth in data breaches and cyberattacks propels the hardware security module market growth. Moreover, the growing adoption of cloud-based HSMs is expected to create an opportunity for market growth in the coming years. HSMs using cloud-based technologies offer physical data access protection, generation of keys, secure management of key material, and a secure execution environment for cloud applications.
A hardware security module (HSM) is a dedicated crypto processor that is specifically built for crypto key lifecycle protection. Hardware security modules securely manage, process, and store cryptographic keys within a hardened, tamper-resistant device, acting as trust anchors to safeguard the cryptographic infrastructure of the most security-conscious enterprises across the globe. It helps reduce risk and satisfy compliance requirements using PKI, blockchain, code signing, document signing, database encryption, eIDAS, GDPR, DNSSEC, PCI DSS, and other solutions. Also, it helps safeguard cryptographic keys wherever the companies' applications and workloads operate at scale, providing more flexibility. Furthermore, HSM protects digital transition with equipment built for modern data centers.
Many large-sized businesses and corporations work with a huge volume of sensitive and confidential data. The rise in digitalization has encouraged several businesses across various industry verticals to digitalize their business to gain competitive advantage, enhance operational workflow, and reach more targeted audiences. However, the adoption of digital solutions makes critical data vulnerable and accessible to hackers, leading to the loss of critical information, financial losses, and loss of customer trust, among others. The rise in the number of data breach cases affects the overall business performance. A few of the data breach incidents are mentioned below:
To protect data and boost their network security, businesses are using hardware security module (HSM) solutions. Thus, the rise in the number of data breach cases generates the demand for enhanced security solutions, such as hardware security modules, which drives the hardware security module market.
HSMs using cloud-based technologies offer physical data access protection, generation of keys, secure management of key material, and a secure execution environment for cloud applications. A few of the major market players are focusing on developing advanced hardware security modules for cloud-based applications. For instance, in September 2022, Marvell unveiled its LiquidSecurity 2 (LS2) hardware security module adapter, an advanced solution that offers encryption, key management, authentication, and other hardware security module services in the cloud. Furthermore, LS2 is a converged security platform for payment, privacy compliance, and general-purpose applications. It is powered by Marvell OCTEON, a cloud-optimized data processing unit (DPU), which is proven at scale across the world as the largest hyperscale cloud. The new adapter offers the highest-performing cryptographic acceleration and processing, as well as hardware-secured storage of up to one million keys for AES, RSA, and ECC encryption algorithms and 45 partitions for robust multi-tenant use cases. Also, in August 2023, Thales announced the launch of its new payShield Cloud HSM service, aimed to boost the adoption of cloud payments infrastructure. The solution, built on its payShield 10k Payment Hardware Security Module (HSM), focuses on providing clients with improved flexibility, scalability, and speed-to-market solutions. Thus, the growing adoption of cloud-based HSMs is expected to create lucrative opportunities for the hardware security module market growth during the forecast period.
Key segments that contributed to the derivation of the hardware security module market analysis are type, application, and industry.
The geographic scope of the hardware security module market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
Europe held the largest hardware security module market share in 2022. The Europe market is expected to grow during the forecast period due to the rising awareness about the data security benefits provided by HSMs. The growing BFSI, IT & telecommunication, healthcare, and other industries in the region are raising the need for hardware security modules to protect their business information. Furthermore, the increasing digital advancements in Germany, the UK, and other European countries and the growing adoption of cloud based HSMs are creating an opportunity for the hardware security module market growth in Europe.
The regional trends and factors influencing the Hardware Security Module Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Hardware Security Module Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 1.36 Billion |
| Market Size by 2031 | US$ 3.85 Billion |
| Global CAGR (2023 - 2031) | 13.9% |
| Historical Data | 2021-2022 |
| Forecast period | 2023-2031 |
| Segments Covered |
By Component
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Hardware Security Module Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Hardware Security Module Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The hardware security module market has been evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the hardware security module market are listed below:
The market report "Hardware Security Module Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas:
The List of Companies - Hardware Security Module Market
The hardware security module market is expected to register a CAGR of 19.5% from 2023 to 2031.
Rising cases of data breaches and growing adoption of HSM for retail payment transactions are the major drivers of the market.
The rising adoption of the 5G network is expected to be a key trend in the market.
The hardware security module market is expected to be valued at US$ 318.13 million by 2031
Thales, STMicroelectronics, Utimaco Management GmbH, Atos SE, IBM Corporation, Futurex, SWIFT, Ultra Electronics Holdings plc, Infineon Technologies AG, and Hewlett Packard Enterprise Development LP are the major players operating in the market.