Hardware Security Module (HSM) Market By Deployment type (On-premise, Cloud) By Type (LAN Based/ Network Attached, PCI-Based/ Embedded Pluggins, USB Based/ Portable, Smart Cards) By Application(Payment Processing, Code and Document Signin By Type (Network-Attached HSM, Embedded Plugins HSM, USB-Based HSM), By End-User (Retail, Government, IT & Telecommunication, Healthcare, Transportation, Energy & Utility, Manufacturing, Others) - Growth, Future Prospects And Competitive Analysis, 2016 - 2028

What are the qualities of a Hardware Security Module (HSM)?

A hardware security module (HSM) is a device that adds additional protection to private data. It controls cryptographic keys for critical operations like decryption, encryption, and authentication. Also, it's used in various applications like decryption, application-level encryption, payment processing, document and code signing, database encryption, and authentication. For instance, companies use a hardware security module to secure valuable trade secrets by ensuring that only authorized individuals can approach the HSM to accomplish key cryptography activities.

What is the Market Size of the Hardware Security Module (HSM) in terms of value?

Global Hardware Security Module (HSM) Market is projected to increase at a significant CAGR of 11.30% in the coming years. In 2021, the global hardware security module (HSM) market was valued at USD 1026.4 million and was projected to reach USD 1951.13 million by 2028. The demand for hardware security modules (HSM) is projected to increase substantially in the coming years. It is presumed to generate revenue opportunities for the key industry players worth USD 924.73 million during the forecast period between 2022 and 2028.

What is the recent development of the Hardware Security Module (HSM)?

The developments in hardware security modules (HSM) immensely increased in the past few years, including partnerships, product launches, product development, and others. For instance, in March 2022, IBM launched a service to help manage digital security keys across multi-cloud environments. Similarly, in June 2020, Futurex launched the VirtuCrypt financial cloud HSM service. It is a financial cloud hardware security module service that aids financial services organizations' cryptography for payment systems and key management requirements in the cloud. Furthermore, in March 2019, Three new cloud-based Hardware Security Module (HSM) services were made available by Gemalto: HSM On Demand for Oracle TDE, HSM On Demand for Hyperledger, and HSM On Demand for CyberArk. In addition, the SafeNet Data Protection on Demand platform, a global market for cloud-based HSM, offers several services. Therefore, the development of HSM by market players worldwide will aid the market growth during the coming years. 

Interesting Facts about Hardware Security Module (HSM) Industry

• The top 5 hardware security modules (HSM) countries are the United States, the United Kingdom, China, India, and China.
• The increased concern about data security in all data-sensitive companies and its cost, especially for medium and small businesses, are the major factors driving the growth of the hardware security module (HSM) market.
• The high cost of deployment and updating software is projected to hinder the growth of the hardware security module (HSM) market during the forecast period. 
• The Europe region had a major share in volume and value in the global hardware security module (HSM) market in 2021 and is also expected to continue its dominance during the forecast years.
• Cloud-based hardware security module (HSM) is to witness high growth during the forecast period due to increasing digitalization and urbanization worldwide.

Who are the Top 10 players/companies in the Hardware Security Module (HSM) Market in terms of value and volume?

In value and volume, the key players in the global hardware security module (HSM) market include Thales, Hewlett Packard Enterprise Development LP, Utimaco, Microchip Technology, International Business Machines Corporation, Security, Infineon Technologies, Spyrus, Futurex, Atos SE, SWIFT, and Yubico. These key players are focusing on new product development as well as technological innovation to improve their hardware security module (HSM) productivity and gain a competitive market share on a global scale. Furthermore, regional and national players are investing heavily to expand their product portfolios and increase sales. For instance, in October 2021, Atos and DuoKey announced the launch of a joint encryption offering that provides companies using Office 365, and more specifically, its Double Key Encryption feature, which is used to protect sensitive data from being accessed by Microsoft or any other external individual or organization. This offering ensures that customers have complete control over the privacy and security of their data and meets a real requirement for control expressed by many public, healthcare, and energy organizations.

Who are the Top 10 Countries in the Hardware Security Module (HSM) Market?

In the global hardware security module (HSM) market, the major countries are China, India, the U.S., Canada, the U.K., Germany, France, Russia, Japan, South Korea, and Brazil. The U.K. is the major producer and consumer of hardware security modules (HSM), with a significant volume share in the global market in 2021. Furthermore, the market in developed countries is primarily driven by increased demand for hardware security modules (HSM) and consumer awareness of digital payments. Furthermore, the hardware security module (HSM) terminals market in emerging economies such as India is expected to grow during the forecast period due to increased smartphone penetration among teenagers. 

Which is the Key Vertical Area in the Hardware Security Module (HSM) Market?

The key verticals of hardware security module (HSM) include consumer goods & retail, banking, financial services, and insurance, aerospace and defense, public sector/government, energy & power, industrial manufacturing, medical & life science, and transportation. In addition, HSM is important in healthcare, particularly for telematics infrastructure (TI), like the electronic health card (eGK) in Germany. In addition, the primary goal of eGK was to allow processing, cross-system registration, and data transmission for the patient within a secure network between trusted participants such as hospitals, care providers, pharmacies, physicians, health insurers, and medical practices. 

Moreover, pharmaceutical companies developing medicines must adhere to privacy and security standards. These businesses are also audited regularly. The cloud-based solutions for secure remote access allow pharmaceutical companies to stop paperwork, easily share documents, automatic document handling, and record regulatory-compliant sign on smart electronic devices such as Smartphones and tablets. In addition, cloud signing systems allow pharmaceutical companies to reduce shipping costs while propelling supply chain efficiency. The increased demand for HSM in the coming years is expected to support the growth of the hardware security module (HSM) market.

What are the Major Driving Factors for Hardware Security Module (HSM) Market?

The increased demand for IoT (Internet of Things) based medical devices, including cardiac monitors, diagnostic imaging devices, hemodynamic monitors, respiratory monitors, and implant dynamics, will aid the market growth in the coming years. Furthermore, the increasing geriatric population, rising life expectancy, and growing healthcare expenditure throughout the world have increased the demand for hardware security modules (HSM) is presumed to further drive the market demand in the coming years. Moreover, rising needs for effective management of cryptographic keys are other major factors to propel market growth in the coming years.

What are the Major Restraints for Hardware Security Module (HSM) Market?

The key restraint of the global hardware security module (HSM) market, projected to restrain the market growth, includes the high-cost requirement for hardware security modules (HSM). The other key factor hampering the market's growth is consumers' inclination toward adopting hardware security modules on a rental basis. This is due to the lack of infrastructure in countries, which can hamper the market growth of hardware security modules (HSM).

Which Region Dominated the World Hardware Security Module (HSM) Market?

In 2021, Europe dominated the global hardware security module (HSM) market and accounted for a significant amount of the market revenue share in terms of value and volume. This is majorly due to the high utilization of hardware security modules (HSM) in the regional market on account of the presence of a large number of hardware security module (HSM) companies with vendors, which raises the demand for HSM. Moreover, the rising demand for HSM in the BFSI, IT and Telecommunications, medical and life sciences, and automotive industry verticals are rising. Furthermore, the rise in the development of 4G LTE technology also supports the growth of the European hardware security modules (HSM) market during the forecast period. On the other hand, the U.K. accounted for the fastest growing region during the forecast period due to many market players in the country. 

Moreover, North America and the Asia Pacific are expected to see significant growth in the coming years due to increased demand for hardware security modules (HSM) and digital infrastructure for data safety and security in this region. Furthermore, the growing demand for hardware security modules (HSM) among customers to reduce cyber attacks and safely secure data is driving the growth of the hardware security module (HSM) market in North America and the Asia Pacific.

Segmentation of Global Hardware Security Module (HSM) Market-

Global Hardware Security Module (HSM) Market – By Deployment type

• On-premise
• Cloud

 Global Hardware Security Module (HSM) Market – By Type

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

Global Hardware Security Module (HSM) Market – 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)

Global Hardware Security Module (HSM) Market – By Vertical

•    Consumer Goods & Retail
•    Banking, Financial Services, and Insurance
•    Aerospace & Defense
•    Public Sector/ Government
•    Energy and Power
•    Industrial Manufacturing
•    Medical and Life Sciences    
•    Transportation

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