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

Hardware Security Module Market - Key Research Findings

  1. Global hardware security module market size in 2017 – nearly US$ 659 Mn.
  2. The hardware security module market is expected to grow at a CAGR of approximately 10.9% during the forecast period of 2018 to 2028.
  3. Some of the key regulations in the global hardware security module market include Cyber Security Legislations in the US and Canada Cyber Security Strategy.
  4. 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.
  1. 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.
  2. 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.

Key Segment

Based on By type

  • USB-based hardware security modules
  • PCIe-based hardware security modules
  • LAN-based hardware security modules

Based on applications

Based on industry vertical

  • BFSI
  • discrete manufacturing
  • process manufacturing
  • media
  • professional services
  • retail
  • healthcare
  • energy & utility
  • among other industry verticals

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Hardware Security Module Market