The Global Hardware Secure Module (HSM) Adapters Market size is expected to reach $2.4 billion by 2028, rising at a market growth of 11.7% CAGR during the forecast period.
Hardware security modules (HSMs) adapters allow a system or application to use an external HSM. An HSM is a hardware device that performs cryptographic computation and preserves digital keys for secure authentication. To offload security-critical operations like decryption, encryption, and signing, an external HSM is connected to the application or system by an HSM adapter.
This can help to ensure the confidentiality and integrity of sensitive data and defend against assaults on the application or system. In financial, governmental, and other organizations that deal with sensitive data, HSMs are frequently employed to safeguard transactions and communications. In addition to other security measures like intrusion detection systems and firewalls, HSM adapters are frequently employed.
They can be implemented as a standalone piece of hardware or as a software component. The market for hardware secure module (HSM) adapters is anticipated to expand significantly throughout the forecast period due to the rise in cyberattacks, rising use of cloud-based services, and increasing preference for electronic payments. Additionally, as 5G becomes more prevalent, technological developments in the internet of things (IoT) and an increase in demand for hardware security modules are predicted to offer attractive prospects for expanding the market.
The HSM adapter claims to provide the fastest acceleration and processing for cryptography, as well as hardware-secured key storage of up to one million keys. These gadgets may come in plugin cards or be built into other hardware, such as smart cards, home appliances, and other extraneous gadgets. They can be also be in conjunction with a network server or can be provided as cloud services.
The COVID-19 outbreak significantly negatively affected the growth of the hardware security module (HSM) adapters market due to its major effects on key companies in the supply chain. The pandemic primarily caused several challenges for the market, including a shortage of skilled labor and project delays or cancellations due to a partial or total lockdown around the world. Because of lockdowns imposed by the government to control the spread of the infection, manufacturers worldwide were unable to add new hardware security modules due to the government's implementation of strict regulations, which disrupted supply chains.
Sensitive data is consistently protected across on-premises, cloud, and hybrid storage using encryption and crypto key management. These technologies meet the performance, flexibility, and scalability requirements for subscriber privacy and authentication security from the data center to the periphery. Hardware security modules further secure cryptographic infrastructures, such as digital certificate management for mobile towers. The demand for data security is projected to rise in the upcoming years, raising the need for hardware security modules (HSM) adapters.
Strong security systems are necessary to secure people's identities, applications, cryptographic keys, data, and other sensitive information because of the rise in internet banking, communications, health care, digital payments, and life sciences. This procedure increases the growth factor for HSM solutions. The market is steadily expanding as more and more cloud computing, and internet of things (IoT) technologies are being adopted. Thus, using HSMs to safeguard sensitive information and the keys that go with it in non-cash commercial payment transactions is anticipated to increase demand for HSM adapters and thus propel the growth of the market.
A remote, unauthorized attacker can take complete control of the vendor's hardware security module because of the weaknesses. Remote access to all HSM credentials, including administrator credentials and cryptographic keys, is made available by these attacks. Attackers can upload modified firmware to the hardware security module by taking advantage of a cryptographic hole in the firmware signature verification. Businesses are therefore required to regularly maintain and upgrade HSMs, which comes at a high expense, in order to avoid these issues. The market for hardware security modules (HSM) adapters is being restricted by this aspect.
Based on type, the hardware secure module (HSM) adapters market is categorized into LAN based/network attached, PCI based, USB based, and smart cards. The USB based segment procured a considerable growth rate in the hardware secure module (HSM) adapters market in 2021. In addition to other uses, USB-based HSM is utilized for code & document signing, digital signature, and secure key storage. These modules are best suited for offline applications where the module must be portable or kept in a physical safe while not in use.
By industry, the hardware secure module (HSM) adapters market is divided into aerospace & defense, banking financial services & insurance, transportation, retail, and others. The banking financial services and insurance (BFSI) segment acquired the largest revenue share in the hardware secure module (HSM) adapters market in 2021. HSM adapters are essential for protecting the private keys and safely storing encryption keys in a hardware-based back-end framework. This is necessary to verify security in banking facilities, banking card personalization systems, online banking, trade finance, foreign exchange, international payments, bank guarantee, as well as other related applications associated in the BFSI vertical.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 1.1 Billion |
| Market size forecast in 2028 | USD 2.4 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 11.7% from 2022 to 2028 |
| Number of Pages | 190 |
| Number of Table | 290 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling |
| Segments covered | Industry, Type, 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 region, the hardware secure module (HSM) adapters market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment procured the highest revenue share in the hardware secure module (HSM) adapters market in 2021. Hardware security modules have a huge, unrealized potential in the Europe region. The trusted platform module (TPM) and secure hardware extension (SHE) specifications have various capabilities that are shared by the three HSM security levels (full, light, and medium). In the coming years, the regional governments' biometric initiatives and national ID card contracts will increase the demand for HSM adapters used for authentication in the region.
Free Valuable Insights: Global Hardware Secure Module (HSM) Adapters Market size to reach USD 2.4 Billion by 2028
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Thales Group S.A., Microchip Technology, Inc., Infineon Technologies AG, Atos Group, Hewlett Packard Enterprise Company (HP Development Company L.P.), IBM Corporation, Futurex LP, STMicroelectronics N.V., Utimaco Management GmbH (SGT Capital), and Securosys SA.
By Industry
By Type
By Geography
The global Hardware Secure Module (HSM) Adapters Market size is expected to reach $2.4 billion by 2028.
Rapid implementation and development of 5G networks are driving the market in coming years, however, Frequent upkeep and upgrading requirements restraints the growth of the market.
Thales Group S.A., Microchip Technology, Inc., Infineon Technologies AG, Atos Group, Hewlett Packard Enterprise Company (HP Development Company L.P.), IBM Corporation, Futurex LP, STMicroelectronics N.V., Utimaco Management GmbH (SGT Capital), and Securosys SA.
The LAN Based / Network Attached segment is generating highest revenue share in the Global Hardware Secure Module (HSM) Adapters Market by Type in 2021 thereby, achieving a market value of $810.7 Million by 2028.
The Asia Pacific market dominated the Global Hardware Secure Module (HSM) Adapters Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $937.9 Million by 2028.
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