Hardware Security Module Market Size, Share, Industry Analysis, Future Growth, Key Trends and Forecast 2022 to 2032

The global hardware security module (HSM) market revenue totaled US$ 1.2 Bn in 2021. The market is expected to reach US$ 6.6 Bn by 2032, exhibiting growth at a 16.2% CAGR between 2022 and 2032.

A hardware security module is also referred to as Secure Application Module (SAM), Personal Computer Security Module (PCSM), Tamper Resistance Security Module (TRSM), Secure Signature Creation Device (SSCD), hardware cryptographic device, or cryptographic module.

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Security Applications Spreading Roots Fast, in the IoT Space

The rising adoption of next-generation security solutions, which is a remarkable trend in the market, aids in improving the products as well as the operational efficiency of enterprises. Existing security solutions are evolving towards context-aware computing technology, which enables enterprises to detect advanced threats in a drastically changing environment. This factor is expected to create potential opportunities in the global cyber security market over the forecast period.

Enterprises are progressively implementing Internet of Things (IoT)-based solutions. IoT solution providers are integrating cyber security solutions to reduce cyber-attacks on connected devices to identify threats and to resolve susceptibilities before launching their products in the market. With growing applications of security solutions in the IoT space, the demand for hardware security modules is expected to rise significantly over the next few years.

Key Vendors Prioritize Competitive Pricing to Assure Security of Enterprise Ecosystem

Manufacturers are currently offering hardware security module systems that have the means to securely back up the keys that they handle in a wrapped form. Other hardware security modules back up keys via the operating system of computers or by using a smart card or some other externally usable security token.

Hardware security modules can make an organization achieve peak security standards for applications ranging from key management to data encryption and authentication. Hardware security modules play a vital role in an enterprise’s security ecosystem.

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However, the cost-per-unit factor of hardware security modules is significantly higher than their software-based counterparts. Moreover, Hardware Security Module-as-a-Service (HSMaaS) solutions offered by some vendors in the market are expensive. Though hardware security modules offer reliable security, cost is a major factor to be taken care of to capture the market as well as achieve market growth.

Several hardware security module vendors are making efforts to make hardware security module services available at reduced costs by means of cloudHSM. However, the incorporation of cloud in critical applications, such as key management and key storage, through HSM induces problems common to cloud infrastructures. As a result, cloud hardware security module services are still expensive and are required to be further enhanced.

SMEs have been known to ignore cyber threats. Such enterprises consider cyber security solutions as a non-priority investment, which is why several start-ups and SMEs incur high losses following ransomware attacks.

National governments across the globe have also started taking initiatives to improve their ICT infrastructure to facilitate digitisation in their respective economies. A major part of the ICT investment is diverted towards cyber security.

Some of the key players in the global hardware security module market research report 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.

Competitive landscape

Many key players in hardware security module market are focusing on investing heavily on innovation, research, and development practices to offer different solution for various industry applications. For enhancing the presence, customer base and solution offering market players are undergoing various strategies such as partnerships, collaborations and acquisitions.

  • For instance, in November 2018, Utimaco GmbH acquired Atalla Hardware Security Module (HSM) and Enterprise Secure Key Manager (ESKM) product lines from Micro Focus International plc. This acquisition strengthened Utimaco’s position in the payment and banking industry as banks and financial services look to embrace innovative and secure solutions.
  • Also, in November 2018, Yubico announced a new open-source hardware security module, i.e. the YubiHSM 2 Software Development Kit (SDK), which is available for developers and engineers to easily implement the YubiHSM 2 for an unlimited number of use cases.

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Hardware Security Module Market Outlook By Category

By Type:

  • LAN-Based HSM/Network-Attached HSM
  • PCIe-Based/Embedded Plugins HSM
  • USB-Based/Portable HSM

By Applications:

  • Payment Processing
  • Code and Document Signing
  • Secure Sockets Layer (SSL) and Transport Layer Security (TLS)
  • Authentication
  • Database Encryption
  • PKI or Credential Management
  • Application-Level Encryption

By Industry Vertical:

  • BFSI
  • Discrete Manufacturing
  • Process Manufacturing
  • Media
  • Professional Services
  • Retail
  • Healthcare
  • Energy & Utility
  • Others


  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • APEJ
  • Japan
  • MEA

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