Global Hardware Security Modules Market Forecast to 2028: Increasing Deployment of Connected Devices and IoT Technology in Smart Cities Creates Market Opportunities

DUBLIN, Jan. 5, 2024 /PRNewswire/ — The “Global Hardware Security Modules Market by Deployment Type (Cloud, On-premise), Type (LAN Based /Network Attached, PCI Based/Embedded Plugins, USB Based/Portable, Smart Cards), Application, Vertical and Region – Forecast to 2028” report has been added to ResearchAndMarkets.com’s offering.

The global hardware security modules market is projected to grow from USD 1.2 billion in 2023 and is projected to reach USD 2.3 billion by 2028; it is expected to grow at a CAGR of 13.5% from 2023 to 2028.

The growth of the hardware security modules market is driven by increasing data breaches and cyberattacks, need to follow stringent data security compliances, and emergence of digital transactions, electronic payments leading to rise in the need for protecting sensitive financial data. However, high ownership costs associated with hardware security modules is limiting the growth of the hardware security modules market.

USB-based/portable HSMs to witness highest growth during the forecast period

The USB-based/portable hardware security modules segment is expected to witness the highest growth in the hardware security modules during the forecast period. This can be attributed to the rising demand for USB based HSMs among users due to its lower cost, compact size and portability features. The USB based modules are small and portable, therefore can be deployed for various functions including coding and signing, digital signatures, and secure key storage. It is capable of encryption and key protection and is ideally suited for off-line key generation for certificate authorities as well as development and Bring Your Own Device (BYOD) environments. These modules are preferred by all the industries as they offer superior security, cost-efficiency, and ease of deployment. Hence, HSMs with USBs are widely used by governments and financial institutions to secure data, applications, and identities to reduce the chances of risk, and ensure regulatory compliance. Furthermore, USB connectivity makes such modules suitable for use with laptops, desktops and workstations. With the use of an integrated reader, these modules become ideal for situations with limited space or where they must be frequently used.

Cloud deployment expected to exhibit higher growth compared to the on-premise segment during the forecast period

The cloud deployment segment is expected to exhibit higher growth compared to the on-premise segment during the forecast period. This mode has the ability to perform cryptographic operations and render absolute control over keys to customers through separation of duties. Moreover, the cloud-based HSMs allow users quick scalability by adding and removing hardware security module capacity on-demand, with no up-front costs. These HSMs are capable of generating their own encryption keys on the cloud. Cloud HSMs also provide flexibility to integrate with applications such as APIs, Java Cryptographic Extension and so on.

Secure Sockets Layer (SSL) and Transport Layer Security (TLS) application segment to exhibit highest growth for the hardware security modules market during forecast period

The Secure Sockets Layer (SSL) and Transport Layer Security (TLS) application segment is projected to grow at the highest CAGR of (15.7%) during the forecast period. HSMs are designed to create a secure boundary for cryptographic operations and communications. So, this feature is very useful in Secure On-board communication where communication between different components within an embedded system takes place (e.g., communication between sensors/actuators and Microprocessor). Majorly used Secure Communication Protocols: Secure Sockets Layer/Transport Layer Security (SSL/TLS), Internet Protocol Security (IPsec), Secure Shell (SSH), Secure/Multipurpose Internet Mail Extensions (S/MIME), Wi-Fi Protected Access 3 (WAP3). HSMs store and manage cryptographic keys used in SSL/TLS protocols. This includes private keys used for server authentication and digital signatures. The keys never leave the HSM, ensuring they are protected from unauthorized access. HSMs are designed to accelerate cryptographic operations, including the SSL/TLS handshake process. This can improve the overall performance of SSL/TLS connections.

Asia Pacific to witness significant growth for the hardware security modules market during the forecast period

Asia Pacific is expected to exhibit significant growth for the hardware security modules market during the forecast period. The presence of three of the top 10 largest economies in the world – China, India, and Japan, offers a high potential for market growth. There is an increasing demand for hardware security modules on account of rise in the number of manufacturers that have diversified business units. The countries in this region are notably contributing toward the growth of the market, as there is rapid adoption of hardware security modules by enterprises in the region. Thus, technology vendors across the region are coming up with HSM solutions for stopping card skimming and stealing identity activities. The continuously growing customer base of organizations in the region is fueling the growth of the Asia Pacific hardware security modules market. Countries in Asia Pacific are considerably contributing toward the growth of the market, owing to the rapid adoption of hardware security modules by enterprises in the region.

The report provides insights on the following pointers:

Analysis of key drivers (Increasing data breaches and cyberattacks, Need to follow stringent data security compliances, Need to effectively manage cryptographic keys, Emergence of digital transactions, electronic payments leading to rise in the need for protecting sensitive financial data), restraints (High ownership costs associated with hardware security modules, Susceptibility to cyberattacks and security breaches), opportunities (Augmented demand for data security in cloud environments, Increased adoption of connected devices and Internet of Things (IoT) technologies in smart cities, Proliferation of 5G networks worldwide, Rising adoption in the healthcare industry, Adoption of blockchain and cryptocurrencies) influencing the growth of the hardware security modules market.Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the hardware security modules market.Market Development: Comprehensive information about lucrative markets – the report analyses the hardware security modules market across varied regions.Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the hardware security modules market.Competitive Assessment: In-depth assessment of market shares, growth strategies and service offerings of leading players like Thales (France Utimaco (Germany), International Business Machines Corporation (IBM) (US), Futurex (US), Infineon Technologies (Germany), among others in the hardware security modules.

Key Topics Covered:

Executive Summary

Lan-based/Network-Attached Segment to Lead Market from 2023 to 2028Cloud Segment to Account for Larger Share During Forecast PeriodPayment Processing Segment to Account for Largest Market Share in 2028BFSI Segment to Dominate Market During Forecast PeriodEurope Accounted for Largest Market Share in 2022

Premium Insights

Attractive Opportunities for Players in Hardware Security Modules Market – Rising Demand for Cloud-based Hardware Security Modules due to Digitization of Banking ProcessesHardware Security Modules Market, by Deployment Type – Cloud Segment to Account for Largest Market Share in 2028Hardware Security Modules Market, by Application – Payment Processing Application to Lead Market During Forecast PeriodHardware Security Modules Market, by Vertical – Medical & Life Sciences Vertical to Grow at Highest CAGR During Forecast PeriodHardware Security Modules Market, by Type – USB-based/Portable Segment to Record Highest Growth During Forecast PeriodHardware Security Modules Market, by Vertical and Region – BFSI Segment and Europe Accounted for Largest Market Shares in 2022Hardware Security Modules Market, by Region – North America to Register Highest CAGR During Forecast PeriodHardware Security Modules Market, by Key Country – Italy to Dominate Market During Forecast Period

Market Dynamics

Drivers

Increased Frequency of Data Breaches and CyberattacksStringent Data Security CompliancesAdoption of Holistic Approach for Effective Management of Cryptographic KeysWidespread Adoption of Digital Payment Methods

Restraints

High Ownership Costs Associated with Hardware Security Modules

Opportunities

Surging Demand for Cloud Data SecurityIncreasing Deployment of Connected Devices and Internet of Things (IoT) Technology in Smart CitiesProliferation of 5G Networks WorldwideRising Implementation of Security Modules in Healthcare IndustryGrowing Adoption of Blockchain and Cryptocurrencies

Challenges

Identification and Protection of Sensitive DataComplexities Associated with the HSM Integration ProcessNeed to Incorporate Advanced Technologies to Mitigate Cyber Threats and Protect Sensitive Data

Technology Analysis

Key Technology Trends

Virtualization of HSMSIncorporation of AI and ML Technologies into HSMS Integration of Hardware Security Modules into Contactless Smart Cards

Adjacent Technology Trends

Commercialization of the Internet of Things (IoT)Utilization of Blockchain and Distributed Ledger TechnologiesTrend of Digital Signature

For more information about this report visit https://www.researchandmarkets.com/r/x5ergm

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