Hardware Security Modules Market By Application (Payment Processing, Code and Document Signing, Authentication, Application-level Encryption, Database Encryption, PKI and Credential Management, Security Sockets Layer and Transport Security Layer); By Industry Vertical (Consumer Goods & Retail, BFSI, Aerospace & Defense, Public Sector/Government, Energy & Power, Industrial Manufacturing, Medical & Life Science, Transportation, IT and Telecommunication) - Global Forecasts 2021 to 2027

Market Overview:

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 at 11.5% during the forecast period.

The hardware security module is a cryptographic processor that manages and safeguards digital keys. The hardware security module is a standards-compliant cryptographic device that is used for physical security measures, logical security controls, and solid encryption to ensure sensitive data is on the way, being used, and at rest. It is also known as a Secure Application Module (SAM), Personal Computer Security Module (PCSM), or a Hardware Cryptographic Module. The hardware security module performs various types of cryptographic operations, such as key exchange, key management, and encryption.

The driving factor influencing the growth of the global hardware security modules market is growing incidents of data security theft. 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. Moreover, the manufacturers focused to launch new and upgraded products to provide better safety and security. For instance, in 2019, Yubico, the global supplier of encryption hardware devices and authentication for the advanced web, launched their new hardware devices "YubiHSM 2", this device is a cost-effective Hardware Security Module (HSM) for servers and IoT gateways principally engaged to convey the most significant levels of security for storage and management, cryptographic digital key generation with supporting a broad scope of enterprises and application. Thus, a similar type of product launch is considered to boost the demand of the global hardware security modules market.

In addition, the growing adoption of IoT and cloud computing significantly drives the growth of the global hardware security module market. With the use of IoT (Internet of Things), the protection of authenticity, customer privacy and data, and communication become the main area to focus on, thus, the hardware security module is used across industries such as BFSI, consumer goods & retail, and others. For instance, in 2019 ATOS SE launched a new Horus hardware security modules device, a highly performed security device, invent to secure the IoT ecosystem by using cryptographic features.

The Global Hardware Security Modules Market Segmentation:

By Deployment Type

• Cloud
• On-premises

By Type

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

By Application

• 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)

By Industry Vertical

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

By Region

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

Based on deployment, the cloud in a hardware security modules market is expected to be the fastest-growing segment over the forecast period owing to its characteristics such as it easily generates encryption keys to the cloud

The cloud in hardware security modules market is the fastest-growing segment and registered a significant market share of over 16% in 2020 owing to the advantages such as cloud-based hardware security modules can easily generate their encryption keys on the cloud. Moreover, it also offers the flexibility to be attached to different applications such as APIs, java cryptographic extensions, and others. For instance, in January 2021, Futurex LP launched the Industry’s first web API for payment hardware security modules. The web API is mainly designed to integrate payment applications with Futurex enterprise encryption and key management technology, known as Futurex’s VirtuCrypt cloud payment HSM.

Based on the industry vertical, the BFSI industry segment in a hardware security modules market held a major market share close to 28.2% in 2020 due to the rising adoption of digital payment platforms across the globe

The BFSI segment in the hardware security modules market captures the major market share and is expected to witness significant demand for hardware security modules during the forecast period. The increasing adoption of internet banking, mobile & e-wallet payment, and 3D secure payment, across the globe, which will significantly boost the growth of the hardware security modules market. For instance, In September 2019, Utimaco GmbH, a worldwide supplier of IT security solutions launched AT1000, a PCI 3.0 (PCI PTS HSM v3.0), a hardware security module (HSM) is utilized to secure sensitive data and related keys for non-cash retail payment settlement and cryptographic keys.

Based on regions, North America dominated the global hardware security modules market and is expected to show its dominance over the forecast period owing to the presence of major players in the region

North America dominated the global hardware security modules market and held the largest 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 high spending by the regulatory authority for the development of the hardware security modules market in the region. For instance, according to Statista, in 2021, the U.S government announced a cybersecurity budget of USD 18.78 Bn.

The report also provides an in-depth analysis of global hardware security modules market dynamics such as drivers, restraints, opportunities, and challenges

Drivers

• Increasing need for effective management of cryptographic keys
• Rising adoption of IoT and cloud-based services
• Increasing usage of digital payments and internet banking

Restraints

• High cost of hardware security modules

Opportunities

• Increasing demand for data security in a cloud environment
• Technological advancements in hardware security modules

Challenges

• Lack of standardization in hardware security modules
• Inability to control the key management from outside HSM physical protection boundary

COVID-19 Impact on the Hardware Security Modules Market Analysis

The COVID-19 pandemic has significantly affected the major industries such as manufacturing, oil & gas, and others due to the strict lockdown imposed by governments across the globe. The hardware security modules market was significantly impacted by the COVID-19 pandemic. New projects throughout the world have stalled, thus, this led to a decrease in demand for analogue semiconductors. The manufacturers have struggled to integrate new hardware security modules as the workers have stayed in their homes due to the lockdown, which disrupted the global supply chains. However, in 2021, the governments partially open the economy due to which the hardware security modules market recover slowly. Moreover, the global trend for digital payments, which in turn, the surge in demand for hardware security modules, thus it will accelerate the growth of the hardware security modules market. A more detailed analysis specific to this industry will be provided in the report.

The report also provides an in-depth analysis of key trends in the hardware security modules market

• The increase in digital payments methods across the globe
• The increase in demand for cybersecurity solutions

The report also provides an in-depth analysis of recent news developments and investments

• In February 2020, Thales collaborated with Fujitsu to utilize Thales’ Cloud Hardware Security Modules (HSM) and Data Protection on Demand to provide a highly secure and convenient end-to-end service for enterprise public key infrastructure. Moreover, Fujitsu integrated Thales’ Key Management platform with its new enterprise data encryption service to offer secure lifecycle management of cryptographic keys of customers. The partnership strengthens security, compliance, and a cost-effective encryption solution for clients.
• In March 2021, FutureX, a global leader in hardened enterprise-class data security solutions, proclaimed that the integration of payment HSM with jPOS. This integration boost jPOS based payment by enlarging their capabilities in the hardware security modules market.

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

The unique insights provided by this report also include the following:

• In-depth Value Chain Analysis
• Opportunity Mapping
• Sector Snapshot
• Key Players Positioning Matrix
• Regulatory Scenario
• Strategies Adopted-Benchmarking Heat Map
• Market Trends
• Covid-19 Impact Analysis
• Product Comparison
• Pre & Post COVID 19 Impact on the Hardware Security Modules Market
• Competitive Landscape

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