Hardware Security Module Market

Hardware Security Module Market: Considerable Increase in Cyber-attacks Is Compelling Procurement of Efficient Security Modules at Enterprise Level: Global Industry Analysis 2013-2017 and Forecast 2018-2028

2019-03-29
REP-GB-9275
31 Tables
117 Figures
222 pages

An Incisive, In-depth Analysis on the Hardware Security Module Market

This study offers a comprehensive, 360 degree analysis on the Hardware Security Module market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Hardware Security Module market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.

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Hardware Security Module Market - Key Research Findings

Global hardware security module market size in 2017 – nearly US$ 659 Mn.

The hardware security module market is expected to grow at a CAGR of approximately 10.9% during the forecast period of 2018 to 2028.

Some of the key regulations in the global hardware security module market include Cyber Security Legislations in the US and Canada Cyber Security Strategy.

Europe, North America, and APEJ are estimated to remain the largest regional hardware security module markets.

The ever-rising threat of data breaches and cyber-attacks is among the key factors driving the global hardware security module market.

The hardware security module market in APEJ is estimated to register the highest CAGR during the forecast period.

Various companies in the Asia Pacific region are strongly formulating encryption or key management strategies. This factor is expected to boost the deployment of hardware security modules in the Asia Pacific region.

LAN-based hardware security module type is estimated to continue to hold the largest share of the global hardware security module market throughout the forecast period. The PCIe-based hardware security module type is expected to hold the second-largest market share throughout the forecast period.

Growing usage of smart cards and USB token hardware security modules is estimated to boost the global hardware security module market during the forecast period.

Top Factors Shaping the Global Hardware Security Module Market

Increase in data breaches and cyberattacks

Cyberattacks are significantly increasing across the globe. Attackers are increasingly targeting banks, financial institutions, and large companies, thereby raising cyber threats. Several cyberattacks took place in 2014 and 2015, which include the cyberattack on Sony Picture Entertainment (2014), that on the US.

Central Command (2015), and the Yahoo Inc. data breach (2014). The continuous threats of such types of data breaches and cyberattacks are estimated to motivate enterprises to procure efficient hardware security modules, thus driving the global hardware security module market during the forecast period.

In May 2017, a cyberattack caused by WannaCry ransomware struck several banks, financial institutions, and hospitals. More than 200,000 computers around the world were hacked in this attack.

High cost of implementation and upgrades

Hardware security modules are among the most secure options for ensuring security of data, devices, and applications. However, hardware security modules are likely to be difficult to implement due to their high costs.

The cost of hardware security module is a major concern for organisations that are concerned about their overall expenditure, especially small- & medium-sized organizations and enterprises. As a result, majority of small- and medium-sized organisations are still using software-based security solutions.

Moreover, the up-gradation of hardware-based security solutions is a complex process and is mostly possible through device substitution, which further adds to the security spending of an organisation. These factors are restraining the growth of the global hardware security module market.

However, with technological advancements in the field of security, the cost of hardware security modules is expected to decrease in the next few years. This is likely to reduce the restraining impact of cost on the global hardware security module market during the forecast period.

Hardware Security Module Market Structure Analysis

Among the key players in the global hardware security module market, Gemalto NV and IBM Corporation are focusing on entering into partnerships to increase their share in the hardware security module market.
Thales E-Security, Inc. and Ultra Electronics, among other hardware security module vendors, are focusing on improving their market shares by launching new products.
Some of the key developments in the global hardware security module market include:
Gemalto NV acquired SafeNet. Gemalto NV has integrated the data and software protection tools from SafeNet into its payment & identity business segment to enhance its enterprise and cloud-based security solutions and services.
More recently, Gemalto NV acquired 3M Cogent Inc. This move reinforced Gemalto’s portfolio of identity management solutions with 3M’s biometric technology. This helped the company strengthen its position in the government sector.

Hardware Security Module Market Background

The market study offers an elaborate analysis of the global hardware security module market and features market-related insights on the macro-economic and forecasting factors influencing the adoption of hardware security module technology and its practicality for modern applications. The hardware security module market study includes an exhaustive analysis of the key market drivers, market challenges, and the overall market structure.

Hardware Security Module Market Introduction

This section offers a detailed definition of the hardware security module platform. This section also offers the hardware security module market taxonomy showcasing the various market segments. By type, the global hardware security module market has been segmented into USB-based hardware security modules, PCIe-based hardware security modules, and LAN-based hardware security modules.

With regards to the applications of hardware security modules, the global market has been segmented into payment processing, code & document signing, SSL & TLS, authentication, database encryption, PKI or credential management, and app-level encryption. By industry vertical, the global hardware security module market has been segregated into BFSI, discrete manufacturing, process manufacturing, media, professional services, retail, healthcare, and energy & utility, among other industry verticals.

A market snapshot featuring the global hardware security module market value for the period of 2017 to 2028 has also been added to this section, along with the global market share analysis by segments. In addition, this section of the global hardware security module market study offers an analysis of the incremental opportunity of the market with regards to the platform, end-user, application, and region.

Hardware Security Module Market Report: Executive Summary

The executive summary consists of a comprehensive summary of the global hardware security module market. This comprehensive summary includes the overall global hardware security module market outlook, and the various trends in the supply and demand sides of the market.

In addition, this section offers business growth-related recommendations and opportunities to look forward to in the global hardware security module market. A wheel of fortune depicting sub-segmental growth is provided at the end of this section.

Hardware Security Module Market Forecast and Analysis

An elaborate market analysis has been performed for each hardware security module market segment with regards to the market size in the hardware security module market in every region. This chapter also offers an exhaustive analysis that discusses the current nature of the trends in the global hardware security module market.

The next chapter in the hardware security module market study showcases a detailed analysis of the market across specific countries in different regions. It offers an estimated market viewpoint for the forecast duration of 2018 to 2028. The estimation includes the trending technological innovations and product offerings in the hardware security module market.

The chapter offers an impact analysis that discusses the degree at which market dynamics are influencing the growth of the global hardware security module market in every region. Market forecasts and analysis for key emerging countries (Turkey, Indonesia, and Thailand) based on key market segments has been provided in the hardware security module market report, as an extension to this section.

This global hardware security module market report showcases the present scenario as well as the future prospects of growth in the global hardware security module market across all the business regions for the forecast period of 2018 to 2028. The year 2017 has been considered as the base market year, and the market size has been provided for the next twelve months.

Hardware Security Module Market - Competitive Landscape

The final chapter of the global hardware security module market research report includes a competitive landscape that provides a dashboard view of the key competitors operating in the hardware security module market. The hardware security module market players profiled in this section include Gemalto NV; Thales E-Security Inc.; Utimaco GmbH; IBM Corporation; Futurex; Hewlett Packard Enterprise Company; ATOS SE; Yubico; Ultra Electronics; Swift; Ledger; and Spyrus, Inc.

Hardware Security Module Market Report - Research Methodology

To reach a precise forecast, the market study was started by deducing the existing market size, which formed a platform that enabled us to understand the future prospects of the growth of the hardware security module market. We have deduced the overall growth trend using different methods of market analysis and as per the technological advancements in the global hardware security module market.

As highlighted previously, the global hardware security module market is segregated into different market segments. Analysis has been performed in terms of the segmental Basis Points System (BPS) to feature the distinct contributions made by individual segments to the growth of the global hardware security module market. This data plays an important role in identifying various trends in the global hardware security module market.

After detailed secondary and primary research of the global hardware security module market, the scope of the research study was restricted to the major application segments and the regional markets within the global hardware security module market. The hardware security module market forecast and projections have been determined assuming the fact that there would be no major environmental factors responsible for a sudden shift during the forecast period.

The market estimation and forecast for the hardware security module market has been determined considering the average pricing of major products across geographies. In our global hardware security module market report, we have considered a minimal change in the regulatory requirements during the forecast period.