DUBLIN–(BUSINESS WIRE)–The “Global Hardware Security Modules Market by Deployment Type (On-premises, Cloud Based), Type (LAN Based/Network Attached, PCI Based, USB Based, Smart Cards ), Applications, Verticals and Region (North America, Europe, APAC, RoW) – Forecast to 2027” report has been added to ResearchAndMarkets.com’s offering.
The hardware security module market size is valued at USD 1.1 Billion in 2022 and is anticipated to be USD 2.0 Billion by 2027; growing at a CAGR of 13.1% from 2022 to 2027.
Lawmakers and regulators worldwide are improving the existing data security compliances implementing new legal frameworks, and defining new data security regulations to respond to the increasing internal and external risks, e.g., members of the IT team with knowledge of and access to networks, data centers, and admin accounts, which can lead to data security risks.
As requirements for data protection compliance are becoming stringent, the use of point solutions to patch holes in data security compliance requirements is also increasing, resulting in rising demand for hardware security modules.
These modules provide a common, extensible implementation infrastructure that supports compliance regimes with protection for data-at-rest using encryption, enterprise key management, and access control and security intelligence across enterprises. Regulations such as FIPS 140-2 Level 3, PCI DSS, NIST, and ANSI must be followed by the manufacturers of hardware security modules.
Growing preference for digital payments
As cash usage is declining globally, digital payments are gaining popularity. While digital products such as payment apps, digital wallets, buy now pay later, and account-to-account (A2A) payments are gaining popularity, card payments continue to rule in markets with a significant incumbent advantage.
The transition to frictionless, embedded banking journeys is driven by shifting consumer behaviors and reinvented customer experiences. Customers now demand simple, invisible, and embedded payment methods that guarantee secure and quick transactions.
As consumers are becoming used to digital payments, payment service providers and merchants will need to keep up with technological advancements and consistently rising expectations to attract customers. Companies may keep up with the rapidly evolving innovations in the market by adopting an agile payment strategy. Due to the growing usage of digital payments, the need for hardware security modules for protecting critical user data is also expected to rise.
Asia Pacific is the second fastest-growing region in the hardware security module market
Asia Pacific is projected to be a high-growth market for hardware security modules during the forecast period. With three of the top 10 largest economies in the world – China, India, and Japan – the region presents a high potential for market growth. In this report, Asia Pacific constitutes Japan, China, India, South Korea, Australia, and the Rest of APAC.
The growing demand for hardware security modules is attributed to the increasing number of manufacturers that require secure networks to enable internal and external communication across geographically diversified business units.
Market Dynamics
Drivers
- Increasing Data Breaches and Cyberattacks
- Need to Follow Stringent Data Security Compliances
- Requirement for Effective Management of Cryptographic Keys
- Growing Preference for Digital Payments
Restraints
- High Ownership Costs Associated with Hardware Security Modules
- Vulnerability to Cyberattacks and Security Breaches
Opportunities
- Rising Demand for Data Security in Cloud Environments
- Increased Adoption of Connected Devices and Internet of Things (Iot) Technologies in Smart Cities
- Increased Demand for Hardware Security Modules with Advent of 5G
Challenges
- Discovering and Protecting Sensitive Data
- Inability to Control Key Management from Outside Physical Protection Boundary of Hardware Security Modules
- Complex Integration Process
Companies Mentioned
- Adwebtech
- Amazon Inc.
- Atos Se
- Efficient India
- Ellipticsecure
- Entrust Security
- Escrypt
- Fortanix
- Futurex
- Ibm
- Infineon Technologies
- Jisa Softech
- Lattice Semiconductors
- Ledger
- Microchip Technology
- Microsoft
- Sansec Technology
- Securosys
- Spyrus
- Stmicroelectronics
- Swift
- Thales
- Ultra Electronics
- Utimaco
- Yubico
For more information about this report visit https://www.researchandmarkets.com/r/3642jk
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