The hardware security modules market size is expected to advance at a CAGR of 14.7% during 2022–2030, to reach USD 3,732 million by 2030.
The major growth factors for the market are the rise in the number of security breaches and cyberattacks, the adoption of contemporary technologies, such as IoT, cloud computing, and big data analytics, and the implementation of user-friendly interfaces to incorporate blockchain transaction security systems for customers.
HSMs are physical computing systems that secure, administer, and perform digital signature encryption, digital keys, fast authentication, decryption, and other cryptographic functions. They are manufactured in the build of an external unit or plug-in card that can be directed fixed to the motherboard computer or network server. Companies majorly require hardware security modules to gain and maintain customer satisfaction and encourage the general public to trust the digital world, by ensuring strong security. The adoption of hardware security modules began with the BFSI sector, to secure payment transactions made with the credit and debit cards issued by Mastercard, Visa, and all other major BFSI firms.
The payment processing category held the largest share in the hardware security modules market in 2022. ‘Payment processing’ is a service used to automate payment transactions between a merchant and shopkeeper. In this, a computer verifies and accepts the transactions of the merchant using a secure internet network connection.
With the rising penetration of e-commerce and mobile banking, all domains need secure methods for payment transactions. HSMs secure payment transactions via the validation of cards, the PIN entered in an ATM, magnetic strip data, EMV chips in card production and personalization processes, and during the processing of a payment made with debit and credit cards. Hence, with people preferring to purchase things and send and receive money online, the demand for these devices for protecting payments is rising.
5G is offering an exponential growth potential for organizations, as the majority of the consumers plan to adopt it eventually. However, these benefits are often marred by the threats to the confidentiality and integrity of vital data, if the security issues are not addressed with a modern trust model. From the network’s edge to its core, multiple kinds of data can be accessed anywhere with 5G. A range of industries, such as transportation, healthcare, and logistics, are being revolutionized by this latest communication technology, as different connected devices can interact with each other using it.
For 5G to be secure, sensitive data must be protected, which is why the requirement for security is growing beyond mobile broadband, to successfully cater to a rising number of consumer devices and applications across verticals. With 5G networks a crucial part of different countries’ critical infrastructure and the laws and regulations implemented to protect user data, by controlling access to networks becoming stricter, the demand for hardware security modules is surging as well.
The rise in the number of cyberattacks across the globe is leading to a high demand for cybersecurity services. Incidents of cybercrime have risen by almost 70% since 2015. With the increasing cases of data security thefts across various industries, companies are adopting HSM solutions. As HSMs are used to protect digital transactions, personal information, and an organization's important digital assets, semiconductor companies are focusing increasingly on technical advantages and making these solutions more secure.
Moreover, as the rate of digitalization is growing in the governmental sector, so is the integration of HDMs. Likewise, local and networked IIoT devices in factories now require high-level protection, including encryption and authentication, using HSM modules.
The biggest global hardware security modules market players are IBM Corporation, ATOS SE, Cavium Inc., Entrust Corporation, Exceet Secure Solutions GmbH, Futurex, Synopsys Inc., Thales Group, Ultra Electronics, Infineon Technologies, and ST Microelectronics.