Hardware Security Module Market is expected to reach US$ 3.85 Billion by 2031

Emergence of 5G to Provide Opportunities for Hardware Security Module Market During 2021-2031

According to our latest market study on "Hardware Security Module Market Size and Forecast (2021-2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Type, Application, and Industry," the market was valued at US$ 1.36 billion in 2023 and is expected to reach US$ 3.85 billion by 2031; it is estimated to record a CAGR of 13.9% from 2023 to 2031. 

The 5G network is ∼100 times faster than the 4G network, making real-time data acquisition easier. As the 5G network provides strong connectivity and high-speed data transfer, its demand is increasing across the world. According to the Groupe Speciale Mobile Association (GSMA), 5G penetration across the world is expected to reach 54% by 2030 from 17% in 2022. North America has the highest 5G penetration, with 39% in 2022; it is expected to reach 91% by 2030. 5G penetration in Asia Pacific (except China) is expected to increase from 4% in 2022 to 41% by 2030, while in Europe, it is projected to increase from 11% in 2022 to 87% by 2030. As 5G is the critical new-generation network technology that can enable innovation and support digital transformation, its demand is increasing across the world. Therefore, the governments of various countries are investing in 5G infrastructure. For instance, in July 2021, the government of France announced its plan to invest ~US$ 2.06 billion (EUR 1.7 billion) in its 5G market by 2025 via public and private investments. Through this, the government aims to accelerate the development of 5G in the country. Similarly, in January 2021, the government of South Korea announced that they would increase the coverage of the next-generation mobile networks, particularly 5G, to 85 cities this year from the current seven major cities. It invested ~US$ 115.89 million (127.9 billion won) in 2021 to encourage the use of private 5G networks. Hence, the rising adoption of 5G networks for critical infrastructure has surged the need for more secure solutions, which is expected to bring new hardware security module market trends in the coming years. Various governments are also imposing strict laws and regulations to control network access and protect user data. Thus, the emergence of the 5G network plays an important role in determining the hardware security module market forecast. 

Hardware Security Module Market Analysis — by Geography, 2023

Source: The Insight Partners Analysis

According to the report of IBM in 2022, the impacts of cyberattacks were felt in almost all industries of the global economy. The leading industries that were attacked include manufacturing (25%), finance & insurance (19%), and professional, business, and consumer (PBC) services (15%). APAC was the most targeted region, finding itself subject to 31% of attacks. This increasing number of cyberattacks in APAC is facilitating the expansion of the hardware security module market share. Also, according to the report of Positive Technologies, cyber espionage is a major threat to organizations and states in Asia. As many as 49% of successful attacks on organizations resulted in compromise of sensitive information.

According to NetScout Systems, Inc.’s DDoS threat intelligence report, 1.5 million DDoS attacks were recorded in Asia Pacific in 2023, 16% higher as compared to 2022. The maximum bandwidth of the attacks is 632 Gbps, and the maximum throughput is 316 Mpps. Thus, the increase in cyberattacks in the region propels the adoption of hardware security modules, further fueling the growth of the hardware security module market.

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 among the key players profiled in the hardware security module market report. Several other major players were also studied and analyzed during this market research study to get a holistic view of the market and its ecosystem. The hardware security module market report provides detailed market insights, which help the key players strategize their growth.

In Europe, Germany dominated the hardware security module market share, followed by the UK and France. The UK is witnessing an increase in cyberattacks. According to the report by the American Association of Geographers (AAG), 32% of UK businesses stated suffering a breach between 2022 and 2023. For medium businesses, breaches rose to 59%, whereas for large businesses, it went up to 69%. The average cost of such a breach against medium and large businesses was US$ 4,960. The most usual cyber threat faced by businesses in the UK in 2022 was phishing. 82% of board management in UK businesses find cybersecurity a high priority. Hence, as the frequency and severity of data breaches and cyberattacks continue to escalate, organizations are becoming more worried about the security of their digital assets and customer data, raising the need for advanced security solutions, which is further propelling the hardware security module market growth in the UK.

Similarly, the increasing number of cyberattacks in France is one of the major factors boosting the growth of the market. For instance, in April 2022, cybersecurity researchers identified a new campaign by Russian-linked hackers that targeted diplomats and embassy officials from France, which started in January 2022. The hacks began with a phishing email to deliver a malware-laden file. Also, these linked hackers leveraged the networks of businesses, healthcare organizations, and critical infrastructures across France and other countries to attack targets. The primary motive of the hackers was information stealing and disruption. Thus, such increasing cyberattacks are raising the need for hardware security modules to protect sensitive and confidential data, fueling the hardware security module market growth in France. 

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