Hardware Security Modules Market - Global Industry Analysis, Size, Share, Trends, Analysis, Growth, and Forecast 2017 - 2025

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Hardware Security Modules Market - Global Industry Analysis, Size, Share, Trends, Analysis, Growth, and Forecast 2017 - 2025

Status : July, 2020 | Technology & Media | PPT format

Report Digest


Global Hardware Security Modules Market - Snapshot

One of the key factors driving the growth of the global Hardware security models Market is the increasing incidences of data breaches, cyber-attacks, and hacking which have resulted in the mandates for HSM manufacturers to comply with external and internal data security regulations and privacy regulations. It has also increased the importance of effective management cryptographic keys.

On the basis of application, it is the payment processing application which is leading in the market on account of the rising number of a digital transactions, electronic payments and online shopping as a result of which it is very important to safeguard credit card details and other Financial later. Hardware security module search that the internal processes and systems can be flexible and scalable so as to meet the regulatory requirements and Industry standards with regards to payment processing.

One of the key opportunities within the global Hardware security module Market is the rising demand for data security within the cloud environment. Today Cloud technology has become extremely popular and organizations both big and small art extensively adopting Cloud for storage, infrastructure, and virtual resources. The growing use of cloud is expected to drive the growth opportunities of the Hardware security models Market. Another important Trend that is influencing the growth of this Market is the achievement of point-to-point encryption by complying with PCI standards. On the other hand, the market faces challenges in the form of high costs associated with Hardware security models, the inability to control the key management from outside Hardware security module physical protection boundary, and lack of  understanding the importance of protecting data by organizations.

Global Hardware Security Modules Market: Overview 

A hardware security module (HSM) is a physical, tamper-resistant computing device that performs several cryptographic processes and help organizations manage keys associated with these processes. These devices can protect several critical data processing activities related with server-based applications and provide robust authentication and dedicated crypto processing. HSMs are extensively used by organizations to implement their security policies and effectively manage their access controls. Most commonly, enterprises around the world deploy these modules for the purposes of authentication, application level encryption, payment processing, and Secure Sockets Layer (SSL). Mounting concerns related to privacy of payment processes and security of enterprise data have resulted in the evolution of the hardware security module market. Furthermore, the rise in mobile payment schemes and stringent data security standards are expected to drive the HSMs market. 

Global Hardware Security Modules Market: Key Trends 

A surge in data security breaches in organizations and the increasing number of cyber-attacks are the key factors driving the hardware security modules market. Intensifying regulatory requirement compelling enterprises to comply with various proprietary information security standards has propelled the global HSMs market. For instance, the contractual enforcement of Payment Card Industry Data Security Standard (PCI DSS) in major countries such as the U.S., Canada, and Australia is expected to boost the deployment of HSMs in organizations across the world.  

The rapidly growing need for effective management of cryptographic keys among organizations has spurred the demand for HSMs. In addition, the development of cost-effective and customized solutions is anticipated to create lucrative avenues for the market over the forecast period. Usually, these solutions also enable better interoperability with other encryption management solutions bolstering its implementation. 

Global Hardware Security Modules Market: Market Potential

The deployment of HSMs has become an integral part of cryptographic key management policies for a large number of organizations, particularly in the financial services industry. Thales, a leading provider of cybersecurity and data security solutions based in France, announced in April, 2017 that it has integrated its prominent solution nShield HSMs with Chain, a major provider of enterprise-grade blockchain infrastructure. The integration that includes its Chain Core, its key enterprise software, will help the company’s major strategic partners—Nasdaq, Citigroup, and Visa—to benefit from blockchain networks and build modern financial products and services. The integrated nShield HSMs will enable numerous companies in the financial sector to implement secure models for payment transactions among organizations and will facilitate the safe use of the blockchain technology. 

The technology company, Chain, believes that significant cost savings, speedy transactions, and enhanced data quality are some of the several benefits of an integrated HSM. An effective management of cryptographic keys is critical to blockchain technology and Chain will use the Thales nShield HSM to generate new set of one-time keys for every transaction, along with securing these keys. Chain has developed the Chain Key Derivation algorithm using CodeSafe technology from Thales to provide improved capability to manage more sensitive applications across blockchain platform. Such developments bode well for the growth of the global HSMs market.

Global Hardware Security Modules Market: Regional Outlook 

Latin America is a prominent market for hardware security modules. The increased demand is attributed to the advent of various regulatory compliances and increased adoption of advanced technologies such as cloud computing and the IoT. The upsurge in losses arising out of remediating customer frauds due to data breaches has encouraged numerous organizations in Latin American countries to deploy HSMs. 

Asia-Pacific is anticipated to offer lucrative opportunities for players in the HSMs market. Substantial investments in data security technologies by several companies in emerging markets like China and India have boosted the uptake of HSMs, thereby fuelling the Asia Pacific market for HSMs. 

Global Hardware Security Modules Market: Competitive Analysis 

Several vendors are actively offering customized HSM solutions, mainly focused on cloud-based applications and blockchain technology, to gain a competitive edge over others. Key players vying for a sustained share in the hardware security modules market include Gemalto NV, Thales e-Security, Inc., Utimaco GmbH, International Business Machines Corporation, Hewlett Packard Enterprise, FutureX, SWIFT, Atos SE, Ultra-Electronics, and Yubico.

The study presents a granular assessment and quantitative evaluation of:

  • Key growth factors and prominent trends
  • Size and share of key segments in overall market
  • Key challenges and winning imperatives
  • Factors shaping competitive landscape
  • Insights into how contours of market will change in coming years
  • Technological advances
  • New avenues and imminent investment pockets
  • Regulatory landscape shaping current and future strategies of companies

The region-wise assessment includes market dynamics in:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The study is prepared with the help of an extensive primary and secondary research. Primary research includes but not limited to interactions, interviews, surveys, and events. Opinions of policy makers and industry experts are carefully integrated into the insights to complement primary research. Volumes of secondary data gleaned through renowned paid sources, annual statements, reputed journals, and government documents offer insights into current dynamics and key evolution trajectories the market is likely to assume. The research employs various industry-wide analytics methods and well-established methodologies to ascertain the attractiveness of key segments. Further, it evaluates the lucrativeness of key regions and factors underlying their maturity. The insights notably include a detailed analysis of forces behind vendor differentiation and offers insight into investment-decision making by prominent players.

The report strives to enlighten businesses and industry stakeholders on multiple facets of the growth dynamic of the market, the key of which include answers to:

  • Which key factors will shape the competitive landscape?
  • Which trends will stimulate research and development activities in different geographies?
  • Which are the lucrative growth areas and what is the size of potential they are likely contribute to the overall market?
  • Which disruptions in market growth are likely to come with the new business models?
  • Which are some of the recent overhauls in policies that may change the course of the market significantly?
  • Which are the geographies that will form sizable sources of new streams to new and established players alike?
  • How are top players likely to realign their strategy to counter the forces of competition?
  • Which key strategies emerging players are likely to focus on to consolidate their position?
  • Which changes in end-user preferences might affect the status quo held by the leading players?
  • Which are some of the game-changing innovations influencing the projected share and revenue of the market and its segments?

Note: Utmost care has invariably been taken to present data and arrive at statistics at all the TMR Research reports. Meanwhile, some recent developments and new industry trends may take time to be included in the reports.