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  • Hardware Security Module Market Analysis | 2023-2028

    Hardware Security Module Market Analysis | 2023-2028

    Hardware Security Module Market Analysis | 2023-2028
    Report code - SR2736 Published On : Oct,2023 No. of Pages: 155
    Hardware Security Module Market Size, Share, Trend, Forecast, Competitive Analysis, and Gr See more...

    Market Insights

    "The hardware security module market is likely to grow at a promising CAGR of 9.5% in the long run to reach US$ 1.6 billion by 2028."

    A hardware security module (HSM) is designed to provide a high level of security for cryptographic operations and key management. It is used to safeguard and manage cryptographic keys, perform encryption and decryption operations, and protect sensitive data. It is commonly used in various industries, including finance, healthcare, government, and cloud computing, where data security is of paramount importance. Many industries and government regulations require the use of HSM to mecet security and compliance requirements. For example, the Payment Card Industry Data Security Standard (PCI DSS), Health Insurance Portability and Accountability Act (HIPAA), and General Data Protection Regulation (GDPR) mandate the use of HSM for protecting sensitive data.

    HSM devices are designed to be tamper-resistant and physically secure. They are typically housed in hardened enclosures and include features like secure boot, tamper detection, and self-destruct mechanisms. This makes it extremely difficult for attackers to gain physical access to the keys stored within the HSM. On the contrary, HSM as a Service (HSMaaS) allows organizations to access HSM functionality in the cloud, eliminating the need to manage and maintain physical HSM devices on-premises.

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    Increasing cyber threats and attacks, including data breaches, ransomware, and hacking attempts, have raised the importance of securing sensitive data and cryptographic keys. Moreover, the adoption of cloud services and IoT devices has increased the demand for secure communication and data storage.  HSM provides a high level of security for these critical assets. In addition, the financial sector heavily relies on HSM to secure transactions, ATM networks, payment processing, and electronic fund transfers. Furthermore, with the expansion of e-commerce, online banking, and digital payments, there is a growing need for secure online transactions. HSM also plays a crucial role in securing the encryption and decryption processes involved in these transactions.

    Segment Analysis

    Segmentations

    List of Sub-Segments

    Dominant and Fastest-Growing Segments

    Type Analysis

    HSM Hardware and HSMaaS

    HSM Hardware is expected to be the dominant segment whereas HSMaaS is estimated to witness the faster growth in the years to come.

    Regional Analysis

    North America, Europe, Asia-Pacific, and The Rest of the World

    Europe is expected to remain the largest market over the next five years, whereas North America is likely to grow at the fastest rate.

     

    By Type

    "HSM hardware is expected to maintain its market dominance during the forecast period."

    On the basis of type, the HSM market is segmented into HSM hardware and HSM as a Service (HSMaaS). HSM hardware is expected to maintain its market dominance during the forecast period. Many organizations, especially those dealing with highly sensitive data and compliance requirements, prefer to have physical control over their security infrastructure. HSM hardware allows them to store cryptographic keys and perform critical operations within their own data centers, reducing the perceived risk of relying on external service providers, owing to which HSM hardware is expected to generate a larger demand in the years to come. On the other hand, the HSMaaS is estimated to witness the fastest market growth in the coming years owing to its scalability and flexibility, cost-efficiency, integration with cloud services, reduced management overhead, and global reach.

    Regional Insights

    "Europe is expected to remain the largest HSM market during the forecast period."

    In terms of regions, Europe is expected to remain the largest HSM market during the forecast period. This region has a significant and highly developed financial sector, including major financial centers like London, Frankfurt, and Zurich, and is also home to major companies, such as Thales Group, Atos SE, Utimaco GmbH, and Securosys SA. The region has also been proactive in addressing cybersecurity threats and promoting awareness. This focus on security has led to an increased adoption of HSMs as a best practice for safeguarding critical data and systems. Concurrently, North America is expected to be the fastest-growing region and is likely to create sizeable market opportunities in the coming five years. The USA, in particular, is the growth engine of the region’s market, as the Department of Defense (DoD) and several government agencies rely on HSM for securing classified information, communications, and critical infrastructure.

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    Key Players

    The market is dynamic and concentrated, with the presence of several regional and global players. The leading market players compete on various factors, such as industry demand, price, product offerings, quality, regional presence, etc. Several of these players hold distinct capabilities and offer both HSM hardware as well as HSM services.

    The following are key players in the global HSM market:

    Report Features

    This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market.

    What deliverables will you get in this report?

    Key questions this report answers

    Relevant contents in the report

    How big is the sales opportunity?

    In-depth analysis of the Hardware Security Module Market

    How lucrative is the future?

    Market forecast and trend data and emerging trends

    Which regions offer the best sales opportunities?

    Global, regional and country level historical data and forecasts

    Which are the most attractive market segments?

    Market segment analysis and forecast

    Which are the top players and their market positioning?

    Competitive landscape analysis, Market share analysis

    How complex is the business environment?

    Porter’s five forces analysis, PEST analysis, Life cycle analysis

    What are the factors affecting the market?

    Drivers & challenges

    Will I get the information on my specific requirement?

    10% free customization

     

    Target Audience

    Here is the list of the group of customers that the market hopes to have the greatest opportunity to convert:

    • Distributors
    • Suppliers
    • Manufacturers
    • Logistics organizations
    • Government bodies

    Research Methodology

    This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s hardware security module market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

    This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

    Customization Options

    With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

    Company Profiling

    • Detailed profiling of additional market players (up to three players)
    • SWOT analysis of key players (up to three players)

    Competitive Benchmarking

    • Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

    Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com

    Recent Market News & Developments

    Converged HSM is a relatively recent development in the field of HSM and cybersecurity. It is an evolution of traditional HSMs to meet the demands of modern, cloud-centric, and hybrid computing environments by integrating the capabilities of traditional HSMs with features like cloud integration, software-based cryptographic processing, and the ability to secure data and keys across both on-premises and cloud infrastructures. Utimaco GmbH developed its first converged HSM, u.trust Anchor, designed for both payments as well as general-purpose use cases.

    Recent Market JVs and Acquisitions: Over the past few years, there have been a fair number of strategic alliances, including M&As, JVs, etc., across the globe. Some of them have been mentioned below:

    • In April 2019, Thales Group completed the acquisition of Gemalto, a leading global provider of digital security solutions, including products and services related to secure authentication, encryption, and data protection. This acquisition resulted in the creation of a world leader with an unrivaled portfolio of digital security and protection solutions.
    • In June 2019, Entrust Corporation completed the acquisition of the global general-purpose HSM (GP HSM) business of the Thales Group. This acquisition followed the commitments made by the Thales Group to divest its GP HSM business, to ensure a strongly competitive market for GP HSM solutions, which allowed the company to finalize the acquisition of Gemalto.
    • In November 2018, Utimaco GmbH completed the acquisition of the Atalla HSM and Enterprise Secure Key Manager (ESKM) product lines from Micro Focus International plc. The acquisition strengthened the overall offering and market presence of Utimaco GmbH.
    • In July 2018, Marvell Technology, Inc. completed the acquisition of Cavium, Inc., a company known for its security and cryptography solutions. With the acquisition, Marvell Technology, Inc. increased its overall portfolio of storage, processing, networking, wireless connectivity, and security solutions.

    Frequently Asked Questions (FAQs)

    A hardware security module (HSM) is designed to provide a high level of security for cryptographic operations and key management. It is used to safeguard and manage cryptographic keys, perform encryption and decryption operations, and protect sensitive data. It is commonly used in various industries, including finance, healthcare, government, and cloud computing, where data security is of paramount importance.

    The HSM market is estimated to grow at a CAGR of 9.5% in the coming five years, as the HSM is increasingly being used in various industries, including finance, healthcare, government, and cloud computing, where data security is of paramount importance.

    Europe is estimated to be dominant in the market in the coming years. The key economies driving the demand for the HSM market are Germany, the UK, Russia, and France. The region has a vast and well-established financial sector and is also home to major companies, such as Thales Group, Atos SE, Utimaco GmbH, and Securosys SA.

    North America is estimated to witness the fastest market growth in the coming years. The USA, in particular, is the growth engine of the regions market, as the Department of Defense (DoD) and several government agencies rely on HSM for securing classified information, communications, and critical infrastructure.

    Thales Group, Entrust Corporation, Atos SE, Utimaco GmbH, Marvell Technology, Inc., Ultra Intelligence & Communications, Securosys SA, Futurex, Kryptus S.A., and PROCENNE are the leading players in the hardware security module market. Several of the players engage in the provision of both, HSM hardware and HSMaaS.