The Global Embedded Security Market size is expected to reach $9.3 billion by 2028, rising at a market growth of 6.0% CAGR during the forecast period.
An embedded system is a piece of programmable hardware that has software or an operating system built-in or linked to it. Consumer electronics, smart devices, IoT devices, cars, and other products use the system. Many embedded system software programs are vulnerable to external threats. Embedded security solutions safeguard embedded system software against a variety of threats.
Body electronics, steering and braking systems, navigation systems, traffic control, powertrain, chassis management, and mobile and e-Com access applications are examples of embedded security in the automotive industry. In some unique cases, such as decreasing IoT attack risks and security posture evaluation, embedded security plays a vital role in robotics for enhancing reliability and performance. In addition, embedded security solutions for automotive sector applications include immobilizer systems, increased vehicle safety, component identification, telematics, guard sensors, infotainment systems, and enhanced automotive reliability.
Manufacturers can use embedded security solutions to ensure that their products and gadgets are safe from cyber threats. In defense, a multi-layer security method is used to align security-based distinction in their offering. When the technology is mission-critical, the device must work with constant reliability and predictability, and data or security on the end-user system cannot be compromised. In the defense sector, various market players are focusing on an open source-based hypervisor, integrating Linux, and a secure boot solution. For example, In January 2020, a company called Wind River announced the acquisition of Star Lab. The acquisition expands Wind River's comprehensive offering in the defense sector by adding virtualization, software for Linux cybersecurity and anti-tamper, and cyber resiliency.
The COVID-19 pandemic caused a severe impact on various economies all over the world. Several businesses were significantly devastated as a result of the outbreak of the COVID-19 infection. In addition, the governments of several countries were forced to impose lockdowns in their nations. As a result, the manufacturing units of numerous goods were temporarily shut down. Moreover, these lockdowns also caused a major disruption in the supply chain of various goods. Further, the COVID-19 led the worldwide healthcare industry to a significant failure due to the shortage of beds and oxygen in hospitals. The COVID-19 pandemic has boosted the demand for embedded security. Due to the enforcement of lockdowns around the world, the pandemic has had an influence on the market due to remote working activities in almost all workplaces around the world.
Clothing, smart glasses, jewelry, and virtual reality (VR) equipment are a few of the examples of wearable technology that are evolving and developing. Fitness tracking, health monitoring, and navigation are some of the possibilities for smart wearable technologies. Several of these applications, like smart home control and payments, require user consent to avoid misuse. To suit this niche market, a number of embedded security solution providers are introducing new embedded security solutions. For example, STMicroelectronics provides secure wearable solutions for a number of applications such as payment, transit, and contactless transactions.
Many automotive advancement are currently reliant on electronics and software, and IT is expected to account for a significant portion of the overall manufacturing cost. Because it has advantages over various other types of vehicles, electric vehicles are becoming highly demanded all over the world. EV charging, on the other hand, is far more than a one-step, plug-and-go process in terms of charging infrastructure. A significant amount of interaction between the charging point, the car, and the utility supplier is required to ensure that each and every electric vehicle on the grid receives the requisite amount of electrical and energy flow. In some cases, financial transactions, as well as personal data, should be handled responsibly and securely, especially when remote EV charging is provided for a fee.
Embedded systems require a considerable number of semiconductors. Semiconductors are crucial components of embedded security solutions. In the past few years, there is a shortage in the supply of semiconductors all over the world. In addition, the inadequate supply of semiconductors is majorly affecting the deployment of embedded security solutions all over the world. The trade war between China and the United States has majorly disrupted the global supply chain of semiconductors. Both of the countries imposed tariffs and limitations on each other, which is generating various kinds of demand and supply problems across the world.
Based on Application, the market is segmented into Payment Processing & Card, Smart Identity Cards, Industrial, Smartphones, Wearables, Automotive, and Others. In 2021, the smartphone segment garnered a promising revenue share in the embedded security market. The constantly accelerating growth of this segment is due to the increasing penetration of smartphones all over the world. There is a significant number of people that are using smartphones across the world. Moreover, smartphones comprise a big amount of sensitive data related to the user. Therefore, in order to protect this data from any kind of unauthorized accesses, the deployment of embedded security solution is rising. This factor is augmenting the growth of this segment.
Based on Offering, the market is segmented into Software, Hardware, and Services. In 2021, the software segment acquired the largest revenue share of the embedded security market. The increasing growth of this segment is owing to the rising number of technological developments that are rapidly being introduced all over the world. Software plays a crucial role in the operation of embedded security devices as it works as a link among embedded systems. Hence, the growth of the segment is being augmented.
Based on Security Type, the market is segmented into Payment, Authentication & Access Management, and Content Protection. In 2021, the payment segment procured the largest revenue share of the embedded security market. The increasing growth of the segment is owing to the constantly increasing digitalization all over the world. In the modern era, people are increasingly adopting various digital technologies, including digital payments. These digital payment platforms are usually third-party platforms, which redirect a user’s payment to the receiver. In order to prevent privacy and safety related risks, the demand for embedded security solution is rising in the payment segment. Therefore, the growth of this segment is rapidly accelerating.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 6.1 Billion |
| Market size forecast in 2028 | USD 9.3 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 6% from 2022 to 2028 |
| Number of Pages | 260 |
| Number of Tables | 393 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Security Type, Offering, Application, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. Asia Pacific procured the largest revenue share in the embedded security market in 2021. Many of the emerging economies across the region, such as India, Singapore, China, and Japan, are concerned about cybersecurity. India holds a significant position in the world for overall DNS hijackings, with a rapid increase in cybercrime registrations. Moreover, in this region, where highly sensitive data along with a considerable number of devices are connected to the Internet of Things, security is a huge problem. Further, there is a rising tendency of cyber-attacks through ransomware and malware in the context of the COVID-19 outbreak, forcing organizations to adopt cybersecurity solutions while numerous have already shifted to remote working environments during the lockdown in various countries. These factors would drive the adoption of embedded security solutions across the region and the regional market would observe significant growth over the forecast period.
Free Valuable Insights: Global Embedded Security Market size to reach USD 9.3 Billion by 2028
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Samsung Electronics Co., Ltd. are the forerunners in the Embedded Security Market. Companies such as Qualcomm, Inc., Texas Instruments, Inc., NXP Semiconductors N.V. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Renesas Electronics Corporation, STMicroelectronics N.V., Infineon Technologies AG, NXP Semiconductors N.V., Texas Instruments, Inc., Samsung Electronics Co., Ltd. (Samsung Group), Thales Group S.A., IDEMIA SAS (Advent International, Inc.), Qualcomm, Inc., and Microchip Technology, Inc.
By Application
By Offering
By Security Type
By Geography
The embedded security market size is projected to reach USD 9.3 billion by 2028.
Rising demand from the electric vehicles sector are increasing are driving the market in coming years, however, the shortage of semiconductors growth of the market.
Renesas Electronics Corporation, STMicroelectronics N.V., Infineon Technologies AG, NXP Semiconductors N.V., Texas Instruments, Inc., Samsung Electronics Co., Ltd. (Samsung Group), Thales Group S.A., IDEMIA SAS (Advent International, Inc.), Qualcomm, Inc., and Microchip Technology, Inc.
Yes, COVID-19 pandemic has boosted the demand for embedded security. Due to the enforcement of lockdowns around the world, the pandemic has had an influence on the market due to remote working activities in almost all workplaces around the world.
The Payment Processing & Card segment acquired maximum revenue share in the Global Embedded Security Market by Application in 2021, thereby, achieving a market value of $3.3 billion by 2028.
The Asia Pacific is the fastest growing region in the Global Embedded Security Market by Region in 2021, and would continue to be a dominant market till 2028.
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