Hardware Security Modules Market Size - Industry Analysis and Future Trends 2028

/EIN News/ -- Chicago, July 25, 2024 (GLOBE NEWSWIRE) -- The global hardware security modules market size was valued at USD 1.2 billion in 2023 and is estimated to reach USD 2.3 billion by 2028, registering a CAGR of 13.5% during the forecast period.

The growth of the hardware security modules market share is driven by increasing data breaches and cyberattacks, need to effectively manage cryptographic keys, and emergence of digital transactions, electronic payments leading to rise in the need for protecting sensitive financial data.

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Major Hardware Security Modules Companies Include:

• Thales (France),
• Utimaco (Germany),
• International Business Machines Corporation (IBM) (US),
• STMicroelectronics (Switzerland),
• Microchip Technology (US),
• Infineon Technologies (Germany),
• Swift (US),
• Futurex (US),
• Atos SE (France), and
• Yubico.

Hardware Security Modules Market Segmentation:

Medical & life sciences segment to exhibit the highest growth in hardware security modules market during the forecast period.

The medical & life sciences segment is expected to exhibit the second-highest growth for the hardware security modules market share during the forecast period. The growing need to protect patient identity, related data, and payment information is accelerating the market growth across this vertical. Stringent regulations such as HIPAA and cyber-attacks on medical institutions are driving the need for HSM solutions and services. medical & life sciences sector is witnessing rapid growth in the adoption of hardware security modules. These modules play a vital role in ensuring the security of telematics infrastructure, for example, the electronic health card (eGK) in Germany, facilitates the secure processing and transmission of patient data among trusted participants in the healthcare system, such as doctors, caregivers, hospitals, and pharmacies. HSMs are vital for ensuring the integrity and confidentiality of data on these cards. Additionally, pharmaceutical companies depend on strong security and privacy measures during the development of new medications, making hardware security modules an essential component of their operations.

The market for PKI and Credential Management application segment is expected to witness notable growth during the forecast period

The PKI and Credential Management segment is expected to exhibit notable growth during the forecast period. Hardware Security Modules (HSMs) play a crucial role in ensuring the security of cryptographic operations, especially in the context of Public Key Infrastructure (PKI) and Credential Management. HSMs generate, store, and protect the private keys associated with digital certificates in a PKI. This ensures that the private keys are never exposed outside the secure boundary of the HSM. HSMs can also be used to generate and safeguard encryption keys used for securing user credentials, ensuring that sensitive information remains confidential. HSMs can facilitate secure communication between different components of a PKI or credential management system. This ensures that sensitive information is exchanged in a protected manner.

On-premises segment to hold the larger share of the Hardware security modules market, by deployment type, in 2022

The on-premise segment dominated the hardware security modules industry size in 2022. Traditionally, HSMs were set up “on-premise” or within the enterprise data center. The prevalence of cloud computing, especially over the last few years, has seen the emergence of “Cloud based HSMs” or “HSM as a Service”. On-premise HSMs allow organizations to retain full control over their cryptographic keys and sensitive data. This is particularly important in regions where data sovereignty laws require organizations to store and manage their cryptographic keys within specific geographic boundaries. On-premise HSMs provide greater flexibility for customization and integration with existing infrastructure and security policies. Organizations can tailor the HSM environment to meet their specific needs, ensuring seamless integration with other on-premise systems. Some applications, particularly those with high-performance requirements, benefit from on-premise HSMs due to lower latency and faster access times.

Hardware security modules market in North America estimated to grow at the fastest rate during the forecast period

The hardware security modules market size , in North America is expected to grow at the highest CAGR during the forecast period. North America is expected to witness highest growth during the forecast period. Changing customer preferences toward the adoption of contactless cards and digital-first credit cards are also expected to fuel the growth of hardware security modules in North America. The surge in cyberattacks, especially payment frauds across industries, is expected to drive the need for HSM solutions and services across North America. HSMs are widely being adopted in the financial sector to secure financial transactions, protect sensitive customer information, and comply with regulatory standards such as the Gramm-Leach-Bliley Act (GLBA) and PCI DSS.

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