Report Code: 12359 | Available Format: PDF | Pages: 230
The global embedded security market size was $6,140.8 million in 2021, and the market size will advance at a 6.1% CAGR during the forecast period, to reach $10,470.0 million by 2030. The growth of the industry is attributed to the increasing number of cyber-attacks and security breaches in smart wearable devices, consumer electronics, and IoT devices. The proliferation of digital payments has further propagated the market growth, as they are sensitive events, which need to be guarded against hackers. However, the U.S.–China trade war has resulted in the imposition of multiple restrictions, tariffs, and duties on both countries, thus hampering the industry growth to some extent.
The development of smartphones and smart wearables, near-field communication technology, and mobile internet has allowed for the integration of payment services into existing mobile devices. Convenience and the elimination of the requirement for carrying cash have been the driving forces for cashless and contactless payment methods, while the internet has played an integral role in enabling online commerce. The coronavirus pandemic has further fueled the trend of cashless and contactless payments, thus strengthening the need for stronger cybersecurity measures.
With the continuous evolution in and adoption of wearable technology in multiple applications and the integration of payment apps in smart phones and watches, while ensuring the encryption of data, embedded security companies are exploring new solutions to cater to users. For instance, in March 2021, India-based Axis Bank collaborated with Thales Group and launched wearable contactless payment devices, called Wear ‘N’ Pay.
APAC holds the largest embedded security market share globally, and the regional market is expected to generate revenue of around $6.0 billion in 2030, registering a CAGR of 6.5% from 2021 to 2030. With the increasing degree of interconnection between billions of devices through IoT, stronger IT security is the need of the hour. Cybersecurity concerns are growing in many developing countries in the region, including Singapore, China, and India. As per reports, in 2021, Asia experienced over 25% of the cybercrimes across the globe, making it the most-attacked region by cybercriminals. Further, more than 85 million accounts were breached in India.
The recent outbreak of COVID-19 is expected to fuel the growth of the market, in terms of the software demand. The adoption of remote work environments has led to an increase in the number of cyber-attacks, including those involving malware and ransomware. This has led organizations to equip themselves with stringent security measures, and this trend is likely to continue in the forecast period.
However, COVID-19 had a negative impact on the market in the context of hardware sales. The sales of security products, such as security tokens and microchips, were massively affected. Major producers of semiconductors, such as China, witnessed a sharp slump in production.
The deployment of IoT will continue to grow during the forecast period. IoT-integrated devices are digitally connected and now common in every aspect of the human life, including homes, offices, and cars. The technology enables speedier and better monitoring, processing, and control, as and when needed. Some decision-making can be even pre-programmed/automated. However, a major issue faced by IoT is that it generates too much data, which makes the devices vulnerable and prone to cyber-attacks.
Therefore, security is critical to the success of the internet of things market. Attacks on industrial machine-to-machine networks have highlighted several dangers of cyber-attacks, such as operational disruptions, dents in customer relationship, and devaluation of the brand. With the increasing number of devices being integrated with IoT, the requirement for security will grow during the forecast period.
For instance, Infineon’s product OPTIGA TPM stores sensitive information in much the same way as if it were in a vault, thus providing high levels of protection against cyber-attacks. The trusted platform module (TPM) secures all the major communication channels in a car, such as the central gateway, telematics unit, and infotainment system.
Report Attribute | Details |
Historical Years |
2017-2021 |
Forecast Years |
2022-2030 |
Market Size in 2021 |
$6,140.8 Million |
Revenue Forecast in 2030 |
$10,470 Million |
Growth Rate |
6.1% CAGR |
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
Segments Covered |
By Offering; By Application; By End User; By Region |
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The automotive category is expected to witness the fastest growth in the embedded security market demand, advancing at a CAGR of around 7.0%, during 2021–2030. Electric vehicles are the major drivers of this category; as of 2021, over 6.5 million electric cars have been sold. However, this growing trend might lead to a higher probability of data theft. As per reports, the automotive industry is likely to lose over $500 billion by 2024 to cyber-attacks. Moreover, more than 80% of the cyber-attacks in 2021 were carried out remotely.
Moreover, the automobile sector is immensely dependent on software and electronics. With the growth in the sale of connected cars and increase in the attention on autonomous driving, security becomes paramount in connected car systems, such as sensors, car access systems, secure gateways, powertrains, and chassis. With the security threats continuing to rise, deeper integration of the software with vehicles is required for the latter’s protection from unauthorized access to systems and software manipulation, thus improving the growth of the embedded security market outlook in the forecast period.
Furthermore, the requirement for security in the healthcare system is gaining traction. The Health Insurance Portability and Accountability Act (HIPAA) of 1996, along with the American Recovery and Reinvestment Act of 2009, have legislated investments in electronic health records (EHRs). These systems contain sensitive information and are of tremendous value, which makes them a favorite target of cyber-criminals.
Substituting private/standalone systems with cloud operations offers rewards, but risks at the same time, with the escalation in the frequency of ransomware and other attacks, which are, additionally, becoming more sophisticated. Hence, security solutions that can protect the data from cyber-attacks will be in demand. Such software would be required to be tailored with application whitelisting, antivirus and anti-malware protection, device management, encryption, and risk and compliance, in order to meet specific design requirements.
The market is fragmented in nature with the presence of several major players. In recent years, they have been involved in product launches in order to stay ahead of their competitors. For instance:
The study offers comprehensive market segmentation analysis along with market estimation for the period 2017–2030.
Based on Offering
Based on Application
Based on End User
Geographical Analysis
The market for embedded security solutions valued $6,140.8 million in 2021.
The COVID-19 impact on the embedded security industry was positive in the context of software demand and negative in the context of hardware sales.
The market for embedded security solutions is driven by the inherent cyber risks in making payments digitally, via tablets, smartphones, laptops, and desktop computers.
Payment is the key application in the embedded security industry.
The shift to cloud-based payment and cybersecurity software offers opportunities to the players in the market for embedded security solutions.
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