Hardware Security Modules Market is expected to Reach USD 2.5 Billions by 2027

The Global Hardware Security Modules Market was valued at USD 1.2 Bn in 2020 and is expected to reach USD 2.5 Bn by 2027, growing CAGR of 11.5% during the forecast period.

The rising demand for hardware security modules owing to the increasing incidents of data security theft is among the considerable factors that influence the growth of the hardware security modules market. The hardware security module provides safety and security of the data. It is used to protect user personal information, digital transactions, and the organization's valuable digital assets from exposure.

The prominent global hardware security modules market players are focused on launching new and upgraded products to provide better safety and security. For instance, in 2019, Yubico, the global provider of encryption hardware devices and authentication for the modern web, launched the brand new product YubiHSM 2, it is a cost-effective Hardware Security Module (HSM) for servers and IoT gateways.

Based on deployment type, the cloud segment is the fastest-growing segment in the hardware security modules market and registering a significant market share of over 16% in 2020. The cloud segment is expected to show significant market growth over the forecast period. The cloud-based hardware security modules can easily generate their encryption keys on the cloud. It is also utilized with the different applications platform such as APIs, java cryptographic extensions, and others.

The lack of standardization in hardware security modules is hampering the growth of the hardware security modules market. However, the growing adoption of IoT in the industries and the increasing uses of digital payment platforms across the globe is a lucrative opportunity for the hardware security modules market.

Global Hardware Security Modules Market by Region Outlook (Revenue, USD Million, 2021-2027)

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

In terms of geography, North America dominated the global hardware security modules market and held a market share of over 37.2% in 2020. The growth in the region is mainly attributed to the early adoption of advanced security modules and the presence of key players in the region. Moreover, the increasing expenditure by the governments for the development of the hardware security modules market is due to increasing threats of cybersecurity.

The Global Hardware Security Modules Industry Segmentation:

Global Hardware Security Modules Market by Deployment Type Outlook (Revenue, USD Million, 2021-2027)

• Cloud
• On-premises

Global Hardware Security Modules Market by Type Outlook (Revenue, USD Million, 2021-2027)

• LAN Based/Network Attached
• PCI-Based/Embedded Plugins
• USB Based/Portable
• Smart Cards

Global Hardware Security Modules Market by Application Outlook (Revenue, USD Million, 2021-2027)

• Payment Processing
• Code and Document Signing
• Authentication
• Application-level Encryption
• Database Encryption
• PKI and Credential Management
• Security Sockets Layer (SSL) and Transport Security Layer (TSL)

Global Hardware Security Modules Market by Industry Vertical Outlook (Revenue, USD Million, 2021-2027)

• Consumer Goods & Retail
• BFSI
• Aerospace & Defense
• Public Sector/Government
• Energy & Power
• Industrial Manufacturing
• Medical & Life Science
• Transportation
• IT and Telecommunication

Key Findings:

• Based on the deployment type, the cloud in the hardware security modules market is expected to be the fastest-growing segment during the forecast period
• Based on industry vertical, the BFSI segment in the hardware security modules market held a major market share of over 28.2% in 2020
• Based on regions, North America dominated the hardware security modules market and is expected to show its dominance over the forecast period

Company Profiles and Competitive Intelligence

The key players operating in the hardware security modules market are:

• Hewlett Packard Enterprise Development LP
• Thales Group
• Utimaco Inc.
• IBM Corporation
• Microchip Technology Inc.
• Infineon Technologies AG
• Securosys SA.
• SPYRUS
• Futurex
• SWIFT
• Atos SE
• Yubico
• Ultra-Electronics
• Securosys SA.
• CardContact Systems GmbH

Recent News:

• In December 2020, Securosys, the leading provider of cybersecurity, encryption, and digital identity protection partnered with RIDDLE&CODE, an innovative supplier of secure infrastructure and technology in Europe. This strategic partnership added the advantages of Securosys, HSM technologies on the RIDDLE&CODE's Token Management Platform (TPM).
• In April 2021, Entrust, a global leader in trusted identity, payments, and data protection, launched the Public Key Infrastructure (PKI) as-a-Service. It is a next-generation high-assurance PKI, which is secure, quick to deploy, scales on-demand, and runs in the cloud. This service minimizes the complexity and increases the security of an enterprise cloud application.