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

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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 reliable qualitative and quantitative insights into:

  • Market segments and sub-segments
  • Market trends and dynamics
  • Supply and demand chain of the market
  • Market valuation (revenue and/or volume)
  • Key trends/opportunities/challenges
  • Forces defining present and estimated future state of the competitive landscape
  • Technological developments
  • Value chain and stakeholder analysis

The regional analysis covers:

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

The vast market research data included in the study is the result of extensive primary and secondary research activities. Surveys, personal interviews, and inputs from industry experts form the crux of primary research activities and data collected from trade journals, industry databases, and reputable paid sources form the basis of secondary research. The report also includes a detailed qualitative and quantitative analysis of the market, with the help of information collected from market participants operating across key sectors of the market value chain. A separate analysis of macro- and micro-economic aspects, regulations, and trends influencing the overall development of the market is also included in the report.

Highlights of the report:

  • A detailed analysis of key segments of the market
  • Recent developments in the market’s competitive landscape
  • Detailed analysis of market segments up to second or third level of segmentation
  • Historical, current, and projected future valuation of the market in terms of revenue and/or volume
  • Key business strategies adopted by influential market vendors
  • Outline of the regulatory framework surrounding and governing numerous aspects of the market
  • Growth opportunities in emerging and established markets
  • Recommendations to market players to stay ahead of the competition

Note: Immense care has been taken to present data with the highest levels of accuracy in all TMRResearch reports. Nevertheless, recent developments related to market/vendor landscape may take time to reflect in the analysis.

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