Hardware Security Module Market Size, Share, Growth & Trends Analysis Report By Component, Deployment, Type, and Technology, and End User: Global Opportunity Analysis and Industry Forecast 2028

Hardware Security Module (HSM) Market Forecast - 2028

The global Hardware Security Modules market size is projected to reach USD 2208.3 million by 2028, from USD 1089 million in 2021, at a CAGR of 10.5% during 2022-2028. Key drives of the hardware security module market include the rising cybersecurity threats and the need for confidentiality in the BFSI industry.

The urgent need for securing cryptographic keys will fuel the growth of the Hardware Security Module market during the forecast period. 

Cloud adoption is on a rise in various industry verticals which makes it the prime target for data breaches. This is expected to propel the market forward in the coming years.

Hardware Security Modules (HSM)

A hardware security module (HSM) is a physical computing device that safeguards and manages digital keys for strong authentication and provides crypto processing. These modules traditionally come in the form of a plug-in card or an external device that attaches directly to a computer or network server. Hardware Security Modules (HSM) are devices specifically built to create a tamper-resistant environment in which to perform cryptographic processes (e.g. encryption or digital signing) and to manage keys associated with those processes. HSMs often provide cryptographic acceleration that is measured in terms of operations. These devices are used to protect critical data processing activities associated with server based applications and can be used to strongly enforce security policies and access controls. These modules are physical devices that traditionally come in the form of a plug-in card or an external network connected appliance and are often validated against security standards such as FIPS.

Hardware Security Module (HSM) Market Trends

Need for curbing online threats in the BFSI industry

As digital banking rises and people transact more online the payment details get exposed to a variety of threats and hacking issues. Payment HSMs secure the entire network infrastructure. It helps in PIN generation, management, and validation. The switching of networks during ATM or POS transactions is seamless. HSMs provide cryptogram validation, payment credential, and point-to-point encryption along with sharing digital keys securely with third-party facilitators. Online threats are becoming sophisticated as people move extensively to the virtual world. This will spur the growth of the hardware security module market during the forecast period. 

Securing cryptographic keys

HSMs are hardcore cryptographic processors. They provide a tamper-resistant hardened environment for storing encrypted digital keys that are duly authenticated. These devices are externally plugged in directly to the network server or computer. Strong key management is achieved through multiple generations and the use of digital keys. This will drive the demand for the hardware security module market in the coming years. 

Cloud protection and management

Hardware security modules are offered as subscription-based models to access, generate, and protect key materials on the go. As cloud deployment gains pace in various industry verticals a secure infrastructure is a must. These platforms offer flexibility and provide enhanced protection levels to digital keys stored in clouds. The cybersecurity threats are real which is going to augment the growth of the hardware security module market in the subsequent years. They also simplify containerized applications, address inside-level threats and strictly implement a regulated key management policy in the cloud interface.

Cost inefficiency

HSMs are too costly. There are outright investments in hardware, security, and maintenance. A single deployment can deter many organizations from adopting these devices. This is going to hamper the growth of the hardware security module market in the upcoming years.

Hardware Security Module (HSM) Market Size and Share

Based on application, the BFSI segment is expected to maintain the lead in the hardware security module market share as retail banking regularly uses HSMs to maintain the protection of customer PINS, magnetic stripes, EMV chips, etc, 

Based on region, North America is expected to witness significant growth in the hardware security module market share due to rapid adoption by businesses and well-developed cybersecurity laws. 

Based on type, The segmentations are General Purpose HSMs, payment HSMs, and HSMaaS. General Purpose HSMs are hard tamper-resistant devices that encrypt digital keys and verify digital signatures. Payment HSMs are used in the BFSI industry to protect customer payment details and data. While HSMaaS is a software as a service model required in key management for organizations operating on multiple cloud environments.

Hardware Security Module (HSM) Market Segment and Scope

Hardware Security Modules market is segmented by players, region (country), by Type and by Application. Players, stakeholders, and other participants in the global Hardware Security Modules (HSM) market will be able to gain the upper hand as they use the report as a powerful resource. The segmental analysis focuses on revenue and forecast by Type and by Application for the period 2017-2028.

Hardware Security Module (HSM) Market Segment By Type

• General Purpose HSMs
• Payment HSMs
• HSMaaS

Hardware Security Module (HSM) Market Segment By Application

• Industrial and Manufacturing
• BFSI
• Government
• Others

By Company

• Thales
• Entrust Datacard
• Utimaco
• ATOS SE
• Marvell Technology Group
• Westone Information Industry Inc
• Ultra Electronics
• Synopsys, Inc
• Futurex
• Keyou
• Exceet Secure Solutions GmbH
• Beijing Dean information technology
• Securosys
• Yubico
• Sansec

By Region

• North America
• United States
• Canada
• Europe
• Germany
• France
• UK
• Italy
• Russia
• Nordic Countries
• Rest of Europe
• Asia-Pacific
• China
• Japan
• South Korea
• Southeast Asia
• India
• Australia
• Rest of Asia
• Latin America
• Mexico
• Brazil
• Rest of Latin America
• Middle East & Africa
• Turkey
• Saudi Arabia
• UAE
• Rest of MEA