While the worldwide hardware security module market surpassed the billion-dollar mark in revenue in 2021, Fairfield Market Research foresees promising growth for the market by 2027 end.
Use of Security Systems and the Internet of Things Uplifts Hardware Security Module Market
Modern businesses collect and store sensitive data of customers. This information is often stored in devices and on servers. And, there is a high risk of misuse of these hypersensitive data. Sometimes, even the encrypted data are leaked because the private key gets stolen or hacked. This is the reason why companies need hardware security modules (HSM) to make data invulnerable to leaks or tampering; a cryptographic hardware system designed to perform encryption and decryption operations in a highly secured environment. Ensuring data security has gone far beyond complying with government regulation and it has become the key to success, and even a robust marketing strategy for many companies. This is likely to elevate the growth prospects of hardware security module market.
Robust security systems are necessary to secure people's identities, cryptographic keys, applications, data, and other sensitive information because of the rise in cyberattacks and data breaches, Internet banking, digital payments, communications, health care, and life sciences. The growth factor for hardware security module solutions is increased by this procedure. The market for hardware security modules is steadily expanding as more and more IoT and cloud computing technologies are being adopted. Over 10 billion IoT devices were connected as of 2021according to DataProt. Additionally, the market expansion is driven by the demand for better market management of cryptographic keys. The ideal strategy for the expansion of hardware security module market in future is to offer the hardware protection module with effective and individualised functioning services to customer requirements.
The foundation of many processes' security, including document signature, authentication, and application-level encryption, is cryptography at the hardware level. These procedures can become complicated, pricey, and risky if they are not carefully controlled. Hardware security modules can handle the whole life cycle of keys. These modules are specialised hardware components for cryptography that establish an isolated area for cryptographic operations. An organization's IT infrastructure uses key management to control the variety and volume of keys. By using tamper-resistant hardware to secure keys and functions, hardware security modules give businesses the ability to increase the security of data encryption and digital signature procedures. The hardware security module market will thus be driven by these modules' capacity to facilitate the efficient management of cryptographic keys.
Telematics Infrastructure of Hardware Security Module Drives Hardware Security Module Market
The healthcare and life sciences are expected to be the fastest-growing segment for applying the Hardware Security Module market over the forecast period. Hardware security modules are essential in the healthcare industry, especially for telematics infrastructure (TI) like Germany's new electronic health card (eGK). The fundamental goal of eGK was to make it possible for trusted participants like doctors, caregivers, medical practices, hospitals, pharmacies, and health insurers to process and transmit patient data between systems while operating within a secure network. Pharmaceutical companies must adhere to security and privacy regulations when producing new medications. Additionally, these businesses are routinely audited. A cloud-based system for secure remote access enables pharmaceutical businesses to do away with paperwork, distribute documents effortlessly, automate document handling, and record regulatory-compliant signatures on mobile devices like tablets, and smartphones.
Expansion of 4G LTE to Drive Europe’s Hardware Security Module Market Ahead
The Netherlands, Germany, France, the United Kingdom, Italy, and the Rest of Europe make up the different regions of the European market for hardware security modules. The booming BFSI, IT & telecommunications, healthcare, and life sciences sectors in the area, coupled with the automobile industry, present opportunities to hardware security module market. The expansion of 4G LTE technology in the area, as well as continuing 5G infrastructure projects and small-scale deployments are anticipated to raise the demand for hardware security modules in the IT and telecommunications sectors. According to Ericsson, 5G will continue to promote the growth of IoT due to its quick deployment. By 2024, it is predicted that there will be 1.9 billion 5G cellular subscriptions, with 63 percent of those subscriptions coming from the European market.
Businesses in the UK are undergoing a digital revolution as sophisticated fraud protection measures and high levels of security become more crucial. The retail banking sector is in charge of enormous volumes of data, including consumer financial and personal information. Advanced security methods must therefore protect sensitive data. The retail banking sector is in order of massive volumes of data, including consumer financial and personal information. Advanced security methods must therefore safeguard sensitive data. Retail banks throughout the nation are increasing their expenditures on hardware security modules to encrypt sensitive data. Additionally, these modules protect organisations from security breaches while enabling clients to execute transactions safely using their preferred payment method. The UK's hardware security module will thus be largely influenced by the growing need for hardware security modules in retail banking.
Global Hardware Security Module Market: Competitive Landscape
In February 2020, through a partnership with Fujitsu (Japan), Thales was able to offer an extremely safe and practical end-to-end service for enterprise public critical infrastructure using its Cloud Hardware Security Modules (HSM) and Data Protection on Demand (PKI). Furthermore, Fujitsu combined its new enterprise data encryption service with Thales' Key Management platform to provide safe key management for customers. Clients will benefit from improved security, compliance, and an affordable encryption solution thanks to the alliance. On the other hand, in April 2020, the acquisition of Cypress Semiconductor by Infineon Technologies (US). With Cypress on board, Infineon is now better able to concentrate on structural growth drivers and a more comprehensive range of applications. This will quicken the company's profitable growth trajectory. Microcontrollers, networking components, software ecosystems, and high-performance memory are all added by Cypress in a unique portfolio. The leading power semiconductors, automotive microcontrollers, sensors, and security solutions from Infineon greatly benefit from all of this.
A few of the hardware security module market players include Thales Group (Gemalto), Utimaco GmbH, Adweb Technologies, Yubico, Futurex, Ultra Electronics, Securosys, Entrust Corporation, SPYRUS, Inc., Kryptoagile, Atos, Nitrokey, and IBM Corporation.
Global Hardware Security Module Market is segmented as Below:
By Sales Channel:
Key Elements Included In The Study: Global Hardware Security Module Market
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