Hardware Security Modules Market Size to Surpass USD 5.03 Billion by 2032 Owing to Escalating Cybersecurity Threats and Regulatory Compliance | SNS Insider
The Hardware Security Modules Market is experiencing significant growth, driven by the increasing need for robust data protection solutions across various industries.
Pune, March 07, 2025 (GLOBE NEWSWIRE) — Hardware Security Modules Market Size Analysis:
“The Hardware Security Modules Market size was USD 1.41 billion in 2023 and is expected to reach USD 5.03 billion by 2032, growing at a CAGR of 15.2% over the forecast period of 2024-2032.”
Get a Sample Report of Hardware Security Modules Market@ https://www.snsinsider.com/sample-request/5896
Major Players Analysis Listed in this Report are:
- Thales (Luna HSM, payShield HSM)
- Utimaco Management Services GmbH (SecurityServer HSM, PaymentServer HSM)
- Futurex (Vormetric Data Security Manager, Excrypt SSP Enterprise v.2)
- Entrust Corporation (nShield Connect HSM, nShield Edge HSM)
- IBM (IBM Cloud HSM, IBM z16 Crypto Express HSM)
- Atos SE (Trustway HSM, Bull Hoox HSM)
- Infineon Technologies AG (OPTIGA TPM, SLE 97 Secure HSM)
- STMicroelectronics (STSAFE-A110, STM32Trust TEE Security Suite)
- Microchip Technology Inc. (CryptoAuthentication HSM, CryptoMemory Secure ICs)
- Yubico (YubiHSM 2, YubiKey 5 Series)
- DINAMO NETWORKS (DINAMO HSM, DINAMO Key Manager)
- Securosys (Primus HSM, CloudsHSM)
- Spyrus (Rosetta HSM, Secure Digital Identity HSM)
- Adweb Technologies (Adweb Cloud HSM, Adweb SecureKey HSM)
- Lattice Semiconductor (MachXO3D Secure Control HSM, ECP5 Cryptographic Security HSM)
- ellipticSecure (ellipticSecure Key Manager, ellipticSecure Encryption Engine)
- Amazon Web Services, Inc. (AWS CloudHSM, AWS Key Management Service)
- ETAS (ESCRYPT CycurHSM, ESCRYPT Key Management HSM)
Hardware Security Modules Market Report Scope:
| Report Attributes | Details |
| Market Size in 2023 | US$ 1.41 Billion |
| Market Size by 2032 | US$ 5.03 Billion |
| CAGR | CAGR of 15.2 % From 2024 to 2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2020-2022 |
| Key Regional Coverage | North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe [Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]). Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia Rest of Latin America) |
| Key Growth Drivers | Increasing Cybersecurity Threats and Regulatory Compliance Requirements Drive the Growth of the Hardware Security Modules Market |
Do you have any specific queries or need any customization research on Hardware Security Modules Market, Make an Enquiry Now@ https://www.snsinsider.com/enquiry/5896
Key Growth Drivers Fueling the Expansion of the HSM Market
The Hardware Security Modules Market growth is accelerated by rising cybersecurity threats, regulatory requirements, and the proliferation of digital transactions. Cloud-based HSMs are increasingly adopted, which allows for scalable and cost-effective security solutions to match the rising trend towards cloud environments. Further, advances in post-quantum cryptography and blockchain security open up new possibilities for market growth. Despite the challenges of high expense and integration complexity, increasing demand for reliable digital security solutions guarantees continued demand for HSMs in banking, healthcare, and government industries.
By Type, USB-Based HSMs Dominate Market, While Cloud-Based HSMs Lead in Growth
The USB-based Hardware Security Modules market dominated the market in 2023 with a 42% revenue share owing to its small form factor, simplicity of deployment, and robust cryptographic security. Top companies such as Thales, Yubico, and Utimaco launched sophisticated USB HSMs to address expanding demand. On the other hand, the cloud-based HSM market is witnessing the highest growth CAGR of 16.03% as a result of expanding cloud usage and the necessity for scalable security. Large cloud service providers such as AWS, Microsoft Azure, and Google Cloud have extended their HSM offerings to improve encryption, authentication, and key management, catering to business organizations shifting toward cloud environments.
By Application, Payment Processing Dominates HSM Market, While IoT Security Emerges as Fastest-Growing Segment
The Payment Processing segment dominated the Hardware Security Modules (HSM) market in 2023 with 42% of revenue because of increasing digital payments and stringent regulatory requirements. Leaders such as Thales, Entrust, and Utimaco upgraded payment HSM offerings to increase encryption, fraud protection, and transaction security. In contrast, the IoT security segment is expanding at the fastest rate (CAGR 16.5%), fueled by growing IoT ecosystems in smart homes, healthcare, and automotive markets. As cybersecurity threats are on the rise, businesses such as AWS, Microsoft, and Infineon Technologies have introduced new HSM solutions. AWS launched IoT Device Defender with CloudHSM in 2023 to protect large-scale IoT deployments.
By End-Use, BFSI Dominates HSM Market, While Retail Sector Sees Rapid Growth with Rising Digital Transactions
The BFSI industry dominated the Hardware Security Modules (HSM) market in 2023 due to digital banking expansion, escalating cyber attacks, and strict financial security laws. Banks are deploying HSM-based encryption to safeguard transactions and consumer information, with growing dependence on blockchain and real-time settlements. The Retail and Consumer Products industry is the quickest-growing, however, driven by e-commerce growth and digital payments. MNOs and retail banks are including HSMs for POS encryption and customer information protection. AWS, IBM, and Futurex have introduced modern HSM products, with AWS upgrading CloudHSM and IBM launching a retail-oriented HSM-as-a-service for secure transaction.
Hardware Security Modules Market Segmentation:
By Type
- LAN Based
- PCIE Based
- USB Based
- Cloud-Based HSMs
By Deployment
- Cloud
- On-premises
- By Application
- Payment Processing
- Authentication
- Public Key Infrastructure (PKI) Management
- Database Encryption
- IoT Security
- Others
By End Use
- BFSI
- Government
- Healthcare and Life Sciences
- Retail and Consumer Products
- Technology and Communication
- Industrial and Manufacturing
- Automotive
- Others
Buy an Enterprise-User PDF of Hardware Security Modules Market Analysis & Outlook 2024-2032@ https://www.snsinsider.com/checkout/5896
North America Dominates HSM Market, While Asia-Pacific Sees Fastest Growth Amid Rising Cybersecurity Needs
In 2023, North America dominated the HSM market with a market share of approximately 37%. This was due to stringent cybersecurity laws, high digital payment system adoption, and availability of main industry players. Data protection regulations like California Consumer Privacy Act (CCPA), PCI DSS, and FIPS 140-2 enforce organizations to adopt strong encryption and key management solutions with the help of HSMs.
The Asia-Pacific region is witnessing the highest growth rate in the HSM market at an estimated 16.4% CAGR. The growth is triggered by accelerated digitalization, rising cybersecurity attacks, and government sponsored data protection programs. Regions such as China, India, Japan, and South Korea are seeing a boost in digital banking, e-commerce, and cloud usage, which creates a need for strong cryptographic security solutions. The area’s drive for data sovereignty regulations, like China’s Cybersecurity Law and India’s Personal Data Protection Bill, is forcing companies to use HSMs to be compliant.
Recent Development
- In February 2025, Quantum Dice and Thales launched a Hardware Security Module (HSM) enhanced with a Quantum Random Number Generator (QRNG), integrating Thales’ Luna HSM with Quantum Dice’s Quantum Entropy-as-a-Service (QEaaS) and DISC™ protocol. This
Table of Contents – Major Key Points
1. Introduction
2. Executive Summary
3. Research Methodology
4. Market Dynamics Impact Analysis
5. Statistical Insights and Trends Reporting
6. Competitive Landscape
7. Hardware Security Modules Market Segmentation, By End-Use
8. Hardware Security Modules Market Segmentation, By Deployment
9. Hardware Security Modules Market Segmentation, By Application
10. Hardware Security Modules Market Segmentation, By Type
11. Regional Analysis
12. Company Profiles
13. Use Cases and Best Practices
14. Conclusion
Access Complete Report Details of Hardware Security Modules Market Analysis Report 2024-2032@ https://www.snsinsider.com/reports/hardware-security-modules-market-5896
[For more information or need any customization research mail us at info@snsinsider.com]
SNS Insider Offering/ Consulting Services:
Go To Market Assessment Service
Total Addressable Market (TAM) Assessment
Competitive Benchmarking and Market Share Gain
About Us:
SNS Insider is one of the leading market research and consulting agencies that dominates the market research industry globally. Our company’s aim is to give clients the knowledge they require in order to function in changing circumstances. In order to give you current, accurate market data, consumer insights, and opinions so that you can make decisions with confidence, we employ a variety of techniques, including surveys, video talks, and focus groups around the world.
CONTACT: Contact Us: Jagney Dave - Vice President of Client Engagement Phone: +1-315 636 4242 (US) | +44- 20 3290 5010 (UK)
Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. TheNewsHeadliner.com takes no editorial responsibility for the same.