Embedded Security Market To Generate $10,470 Million Revenue by 2030
- Published: June 2022
The global embedded security market size is projected to be $10,470.0 million by 2030, advancing at a CAGR of 6.1% during 2021–2030. The growth of the industry revenue is attributed to the increasing incidence of cyber-attacks and unauthorized access in consumer electronics, smart wearable devices, and IoT devices. The growing volume of digital payments will further enhance the market growth potential.
The production and sale of security solution hardware, such as security tokens and microchips, were massively affected during the COVID-19 pandemic. The production of semiconductors in China, a major producer, had collapsed, which further restrained the market growth.
Payment Holds Largest Share in Application Segment
The payment category dominates the application segment of the embedded security market, and this category is expected to generate revenue of around $4.5 billion in 2030. The coronavirus pandemic has fueled the trend of contactless and cashless payments. Digital payments are expected to grow further in popularity owing to the rising internet penetration in developing countries and extensive usage of smartphones for e-commerce purchases.
However, cyberattacks, thefts, and frauds are the major roadblocks in the market growth of digital payment solutions. The integration of online payment technologies in businesses has led to a bigger risk associated with regulatory and privacy noncompliance. As per reports, in 2021, about $6 trillion annually were expected to be lost due to cyber-attacks, up by around $3 trillion in 2015 while about 75% of the organizations were predicted to be targets of payment fraud in 2020. This impels organizations to create software that can provide multiple authentication layers without affecting the user experience.
Moreover, authentication holds a considerable share in the application segment. The increase in the number of hacking attacks has necessitated security checks and other appropriate precautions. To secure electronic systems, only authorized and authenticated devices must be connected, to enhance protection against manipulation and cyberattacks. These security technologies make it possible to authenticate people and machines, protect confidential data, and detect unauthorized changes to networked machines and devices. With the increase in data generation due to the extensive usage of IoT devices, this category will continue to grow during the forecast period.
Product Launches Are Most-Effective Strategic Measures
Players in the embedded security industry have been involved in product launches to remain competitive. For instance, in January 2022, Thales Group introduced SafeNet MobilePASS+ 2.2, which is a mobile authenticator for android and windows. Users can generate secure one-time passcodes and approve push authentication requests with a single swipe. Authenticators can be unlocked via face recognition or fingerprints.
Moreover, in February 2021, NXP introduced EdgeLock 2GO, a flexible IoT cloud platform, to securely connect and manage edge devices. This IoT service platform offers zero-touch solutions for the security maintenance and secure deployment of IoT devices. It helps minimize the costs incurred for credential and device management, while offering advanced device security.
Major players operating in the embedded security market include Infineon Technologies AG, STMicroelectronics, NXP Semiconductors, Microchip Technology Inc., Samsung Electronics Co. Ltd., Texas Instruments Incorporated, Qualcomm Technologies Inc., Thales, and Renesas Electronics Corporation.