Hardware Security Modules Market Size & Share, by Deployment (On-Premises, Cloud), End-user (BFSI, Healthcare, Government) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 5119
  • Published Date: Jul 31, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Hardware Security Modules Market size is anticipated to reach USD 8 billion by the end of 2035, growing at a CAGR of 13% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of hardware security modules was over USD 2 billion. The market is propelled to expand as HSMs offer secure key generation, storage, and lifecycle management. They provide robust key protection mechanisms, including key backup and recovery, key replication, and key destruction. HSMs accelerate cryptographic operations by offloading the processing from the main CPU to dedicated hardware. This enhances performance while maintaining the confidentiality and integrity of sensitive data.

HSMs are typically used in industries and applications where the security and integrity of data are critical, such as financial institutions, government agencies, healthcare organizations, cloud service providers, and e-commerce platforms. They provide a high level of security by storing cryptographic keys and performing cryptographic operations within a tamper-resistant hardware environment.


Hardware Security Modules Market
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Hardware Security Modules Sector: Growth Drivers and Challenges

Growth Drivers

  • Increasing Cybersecurity Threats: Cybersecurity threats continue to rise globally, with the frequency and sophistication of attacks increasing. According to a report, cybercrime is predicted to cost the world USD 10.5 trillion annually by 2025. The growing awareness of the need for robust home security systems measures, including HSMs, to protect sensitive data and cryptographic keys drives the demand for HSMs in the hardware security modules market.
  • Regulatory Compliance Requirements: Various industry regulations and data protection laws mandate the use of strong security measures to safeguard sensitive information. For instance, the General Data Protection Regulation (GDPR) in the European Union and the Health Insurance Portability and Accountability Act (HIPAA) in the United States.
  • Increasing Adoption of Cloud Computing: Cloud computing adoption is on the rise across industries, driven by benefits such as scalability, cost-efficiency, and accessibility.

Challenges

  • Complexity of Implementation and Integration: HSMs are complex security devices that require expertise for proper implementation and integration into existing systems. Integration challenges may arise due to compatibility issues with different platforms, operating systems, and applications, requiring specialized knowledge and resources.
  • Performance Impact
  • Cost Considerations

Hardware Security Modules: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~13%

Base Year Market Size (2022)

~ USD 2 Billion

Forecast Year Market Size (2035)

~ USD 8 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of Middle East and Africa)
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Hardware Security Modules Segmentation

Deployment (On-Premises, Cloud)

The cloud segment in the hardware security modules market is estimated to gain the largest revenue share of about 60% in the year 2035. The rapid adoption of cloud computing by organizations across industries is driving the demand for cloud-based security solutions, including cloud HSMs, to protect sensitive data and cryptographic keys.

Cloud-based HSM solutions offer cost savings and scalability advantages over traditional on-premises HSMs. Organizations can leverage the cloud to access HSM capabilities as a service, eliminating the need for upfront infrastructure investments and allowing flexible scaling based on demand. Various industry and government regulations, such as GDPR, PCI DSS, and HIPAA, require organizations to implement strong security measures for protecting sensitive data in the cloud.

End User (BFSI, Healthcare, Government)

Hardware security modules market from the healthcare segment is expected to garner a significant share in the year 2035. Healthcare organizations are subject to strict data privacy regulations such as the Health Insurance Portability and Accountability Act (HIPAA) in the United States and the General Data Protection Regulation (GDPR) in the European Union. Compliance with these regulations drives the demand for HSMs to ensure secure storage and management of cryptographic keys and protected health information. The healthcare industry has become a prime target for cyberattacks due to the high value of medical records and sensitive patient information. According to a report, there was a 55.1% increase in healthcare data breaches in 2020 compared to the previous year.

Our in-depth analysis of the global market includes the following segments:

           Deployment

  • On-Premises
  • Cloud

             End User

  • BFSI
  • Healthcare
  • Government

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Hardware Security Modules Industry – Regional Synopsis

APAC Market Forecast

The hardware security modules market in the Asia Pacific region is projected to hold the largest market share of 38% by the end of 2035. The APAC region has experienced a significant rise in cyberattacks and data breaches. According to a report, the number of reported cybersecurity incidents in the APAC region increased by 45.3% in 2020 compared to the previous year.

The growing cybersecurity concerns and the need for robust data protection drive the demand for HSMs as a security solution. Governments in the APAC region are actively promoting cybersecurity measures and implementing regulations to protect sensitive data. These initiatives encourage organizations to adopt advanced security technologies like HSMs, leading to market growth.

North American Market Statistics

The hardware security modules market in North America is projected to hold the second-largest share during the forecast period. North America has implemented robust data security and privacy regulations, including the Health Insurance Portability and Accountability Act (HIPAA) and the Payment Card Industry Data Security Standard (PCI DSS). Compliance with these regulations requires organizations to implement strong security measures, including the use of HSMs for secure key management and encryption.

North America experiences a significant number of cyberattacks and data breaches, affecting various industries. The growing cybersecurity concerns drive the demand for HSMs as organizations strive to protect sensitive data and cryptographic keys. North America has been at the forefront of cloud computing adoption, with organizations leveraging cloud services for scalability, flexibility, and cost savings. Cloud environments often require robust security measures, including the use of cloud-based HSMs for secure key management and encryption.

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Hardware Security Modules Market Size
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Companies Dominating the Hardware Security Modules Landscape

top-features-companies
    • Thales Group
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Gemalto NV
    • Utimaco GmbH
    • International Business Machines Corporation (IBM)
    • Futurex
    • Micro Focus International plc
    • Yubico
    • ATOS SE
    • Broadcom Inc.
    • OneSpan Inc.

In-the-news

In The News

  • Thales announced the launch of its new nShield XC High-Performance HSMs. The nShield XC series offers enhanced performance and scalability to address the growing demand for secure key management and cryptographic operations in cloud and hybrid environments.
  • Utimaco announced the expansion of its partnership with IBM Security. The collaboration aims to deliver secure cryptographic key management solutions to help organizations protect sensitive data and achieve compliance with regulatory requirements, leveraging Utimaco's HSM technology.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 5119
  • Published Date: Jul 31, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing demand for healthcare security is the major factor driving the market growth.

The market size of hardware security modules is anticipated to attain a CAGR of 13% over the forecast period, i.e., 2023 – 2035.

The major players in the market are Thales Group, Gemalto NV, Utimaco GmbH, International Business Machines Corporation (IBM), Futurex, Micro Focus International plc, Yubico, ATOS SE, Broadcom Inc., and OneSpan Inc., and others.

The healthcare segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Hardware Security Modules Market Report Scope
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