Hardware Security Modules (HSM) Market Research Report- Forecast 2027

Hardware Security Modules (HSM) Market, By Type (LAN-Based HSM, PCIe-Based, USB-Based), By Application (Payment Processing, Code and Document Signing, Authentication), By End-users (Government, Energy and Utilities, Healthcare) - Forecast 2027

ID: MRFR/SEM/1780-HCR | February 2021 | Region: Global | 100 pages

Hardware Security Module (HSM) Market Overview



The global hardware security modules market is projected to have a CAGR of 13% until next year. It is currently worth USD 1.1 billion.


The hardware security module (HSM) market is growing rapidly because it’s secure. Therefore, companies prefer to use it because it makes their transactions, applications, and identities. These can make secure cryptographic keys, digital signing services, and applications.


COVID-19 Analysis


COVID-19 is to the 21st century what the Bubonic Plague was to the 5th century and the Black Death was to the 14th century - a global destiny changer. COVID-19 is as dangerous of a virus as those pathogens were to the populations who lived in those particular points in history. Governments around the world realized this early on and that’s why they decided to impose quarantines and lockdowns. These were temporary because they were not very successful. In any case, many businesses suffered because they were forced to either shut their operations down temporarily or dramatically slow production down.


Governments sought to stop the spread of this virus early on by imposing lockdowns and quarantines. This had a limited effect so they were temporary. In any case, many companies in many markets and industries suffered because they were forced to either dramatically scale back operations or temporarily shut down operations. The companies in the global hardware security modules market were one of the markets that were badly affected because of COVID-19. Many companies were forced to stop projects because the companies that they sold to were forced to either shut down or halt operations.


Market Dynamics


Drivers


What’s been driving growth in the global hardware security modules market has been the growing popularity of the Internet of Things (IoT). This includes the popular and much sought-after device, Alexa. Also, the rise of the Internet also brought about the rise of the darknet. This has allowed many to be able to compromise the security of many organizations by hacking into their networks.


The demand for devices and technologies that can stop cyber attacks, data breaches, online banking, digital payments (like PayPal), communications, healthcare, life sciences, cloud-based services, and cryptocurrency has skyrocketed in recent years. This has increased the demand for hardware security modules that can produce online security mechanisms like cryptographic keys, applications, and data!


Opportunities


Many companies in the global hardware security modules market are seeing that there is big money to be made. That’s why they’re investing millions to develop a new generation of modules that can produce keys and devices/applications that will do a better job of protecting data and information online.


Restraints


Hardware security modules are expensive. This is holding back growth in the hardware security modules market because currently, only very large companies can afford to use them.


Challenges


There is no standardization in the industry. This is especially true in developing nations. However, those in developed nations have more standard modules that can produce more standardized and homogenized modules, keys, devices, and applications.


Technology Analysis


Thales e-Security Inc is a major American player in the global hardware security modules market. It has managed to become an industry leader by investing heavily in new technologies. This allowed it to develop hardware security modules that could produce keys, devices, and applications that could keep information and data even more secure online.


Also, the need for hardware security modules is increasing around the world as the world becomes more digital in nature. This has increased the demand for mechanisms that are more effective and better in terms of keeping information and data secure.


Segment overview


By Type


The global hardware security modules market can be grouped into the following sub-segments based on type:



  • LAN-based

  • HSM network attached

  • HSM

  • PCEI based/embedded plugins HSM

  • USB Based portable HSM


LAN-based HSM is projected to have the highest market share during the forecasted time period. USB-based HSM is expected to have the highest CAGR. It is also expected to have a relatively high market share.


By Application


The global hardware security modules market can be grouped into the following sub-segments based on application



  • SSL

  • TSL

  • Authentication

  • Payment processing

  • Code and document signing

  • Application-level encryption

  • Database encryption

  • PKI

  • Credential management


The authentication sub-segment is projected to have the highest market share until 2022. It will also have the highest CAGR. There are many reasons for this. One is the fact that different pieces of data and information online need different levels of authentication to be considered secure.


By End-User


The global hardware security modules market can be grouped into the following sub-segments based on type:



  • Banking and financial services

  • Energy and utility

  • Retail and consumer products

  • Government technology and communication

  • Industrial and manufacturing

  • Healthcare

  • Life sciences


By Region


The global hardware security modules market can be grouped into the following sub-segments based on region:



  • North America

  • The European Union

  • Asia-Pacific

  • The rest of the world


Regional analysis


The North American region had the highest hardware security modules market share of all of the regions in the world. This is expected to continue for the forecasted period that the report covers because Canada and America have better-developed Internet infrastructure. They also have a higher prevalence of digital companies that need to use various hardware security module services.


The Latin American region had the largest CAGR in terms of the HSM market. There are many reasons for this. A few are that the Latin American region is adopting modern technologies like the Internet of Things (IoT) and cloud computing. Since it’s not that hard to hack into the websites that store this information and data, access it, and corrupt it, the demand for devices that can keep this data and information safe is growing exponentially, especially during the forecast time period.


Competitive Analysis


The global hardware security modules market remains fairly competitive. There are many reasons for this. The first is that there is a lot of money to be made in this market. Most companies can see that. The second is that there are few barriers for entry. Thus, many larger companies with significant manpower and financial resources/reserves are entering the hardware security modules market at breakneck speed!


That said, the pandemic did hit most companies hard. Many of these are staging a comeback by investing heavily in research and development. This is allowing them to develop and market a new generation of more effective devices, keys, and applications. Incidentally, it also allows them to justify charging more for these.


Companies across the global hardware security modules market are finding that they can survive and remain financially viable only if they invest heavily in research and development. This expands their future horizons because it allows them to develop and market newer products with more innovative applications. These products also tend to be superior in comparison to the previous generation of products. They can also justify charging much more for these products.


Companies are also entering into strategic partnerships with other successful companies. They find that the increase in manpower and financial resources allows them to solidify their position in existing markets and enter new markets easily.


Mergers and acquisitions do the same thing for companies that joint ventures (another name for strategic partnerships) do.


Ultra Electronics is a major British player. It has managed to become an industry leader worldwide by investing heavily in research and development. This has allowed it to develop a new generation of products that do a much better job of protecting information and data online than the previous generations did. It has allowed the company to develop a sustainable competitive advantage.


List of Companies



  • Gemalto NV (Amsterdam)

  • Thales e-Security, Inc. (U.S.)

  • Utimaco GmbH (Germany)

  • International Business Machines Corporation (U.S.)

  • FutureX (U.S.)

  • Hewlett-Packard Enterprise Development LP (U.S.) SWIFT (Belgium)

  • Atos SE (France)

  • Ultra-Electronics (U.K.)

  • Yubico (U.S.) and others


Recent Developments



  • Utimaco introduced a new patented security server a few years back


Report Overview


The CAGR for the global hardware security modules market is projected to be 13% until 2022. The Internet of Things and the increased usage of cloud computing are largely what’s driving growth in the market. The North American region may have the largest market share largely because Internet usage is high there but the Latin American region has the highest CAGR (along with the Asia-Pacific region) because Internet use is growing there.




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Frequently Asked Questions (FAQ) :


Regionally, Latin-America accounted for the largest market share in the global hardware security module market

Global hardware security module market recorded USD 1115 million by the end of 2022.

2029-2027 is the assessment period for the global hardware security module market.

The top 4 key players actively functional are Gemalto NV (Amsterdam), Utimaco GmbH (Germany), Thales e-Security, Inc. (U.S.), International Business Machines Corporation (U.S.),

The increase in data breaches & cyber-attacks is the grossing factor influencing the market to expand more than the present time.