Hardware Security Modules Market by Type (LAN Based, PCIE Based, USB Based), Application (Payment Processing, Authentication, PKI, Code and Document Signing, SSL), Deployment Type, Industry, and Geography - Global Forecast to 2022

The hardware security modules market was valued at USD 520.3 Million in 2016 and is expected to reach USD 1,101.2 Million by 2022, at a CAGR of 12.87% during the forecast period. The base year considered for the study is 2016, and the forecast for the market size is provided for the period between 2017 and 2022.

The main objectives of this study are as follows:

• To define, describe, and forecast the hardware security modules market, in terms of value, segmented on the basis of type, deployment type, application, industry, and geography
• To define, describe, and forecast the global hardware security modules market, in terms of volume, segmented on the basis of type
• To forecast the market size, in terms of value, for various segments with regard to five main regions—North America, Europe, Asia Pacific (APAC), the Middle East and Africa (MEA), and Latin America (LA)
• To provide detailed information regarding the factors affecting the market dynamics (drivers, restraints, opportunities, and challenges)
• To analyze opportunities in the market for stakeholders by identifying the high-growth segments of the hardware security modules market
• To provide a detailed overview of the hardware security modules market value chain and analyze the market trends using the Porter’s five forces analysis
• To analyze the competitive intelligence through company profiles, key player strategies, and significant developments in the hardware security modules market, such as new product launches, joint ventures, mergers and acquisitions, and research and development (R&D)
• To strategically profile the key players and comprehensively analyze their market ranking and core competencies along with detailing the competitive landscape for market leaders

The research methodology used to estimate and forecast the hardware security modules market includes the use of extensive primary research and secondary research. The secondary sources referred to for this study include directories; databases such as Hoovers, Bloomberg BusinessWeek, Factiva, and OneSource; and associations such as PCI security standard council. The vendor offerings have been taken into consideration to determine the market segmentation. The top-down procedure has been employed to arrive at the overall market size of the global hardware security modules market. After arriving at the overall market size, the total market has been split into several segments and subsegments, which have then been verified through primary research by conducting extensive interviews with key people such as CEOs, VPs, directors, and executives. This data triangulation and market breakdown procedures have been employed to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments.

To know about the assumptions considered for the study, download the pdf brochure

This report provides valuable insights into the hardware security modules market such as security solution providers, professional services related to the HSM, and end-user industry segments. The hardware security modules market comprises HSM providers such as Gemalto NV (Amsterdam), Thales e-Security, Inc. (U.S.), Utimaco GmbH (Germany), International Business Machines Corporation (U.S.), FutureX (U.S.), Hewlett-Packard Enterprise Development LP (U.S.) SWIFT (Belgium), Atos SE (France), Ultra-Electronics (U.K.), and Yubico (U.S.).

Target Audience:

• HSM original equipment manufacturers (OEMs)
• HSM component manufacturers
• HSM semiconductor device manufacturers
• Cloud service providers (CSPs)
• Distributors
• Organizations, alliances, forums, and associations
• Encryption platform technology developers
• Government organizations and regulatory authorities

Scope of the Report:

The global hardware security modules market, in this research report, has been segmented on the basis of type, application, industry, and geography.

Hardware Security Modules Market, by Type

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

Hardware Security Modules Market, by Deployment Type

• On-premise
• Cloud

Hardware Security Modules Market, by Application

• 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

Hardware Security Modules Market, by Industry

• Banking and Financial Services
• Government
• Technology and Communications
• Industrial and Manufacturing Industry
• Energy and Utilities
• Retail and Consumer Products
• Healthcare and Life Science
• Others (Entertainment and Media, Education, and Transportation)

Hardware Security Modules Market, by Geography

• North America
  • U.S.
  • Canada
• Rest of NA
  • Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Rest of Europe
• APAC
  • Japan
  • India
  • Australia
  • Rest of APAC
• Middle East and Africa
• Latin America

Available Customizations:

With the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for the report:

• Comprehensive coverage of regulations followed in each region (the North America, APAC, and Europe)

Company Information

• Detailed analysis and profiling of additional market players (up to five)

Table of Contents

1 Introduction (Page No. - 14)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Study Scope
           1.3.1 Markets Covered
           1.3.2 Years Considered for the Study
    1.4 Currency
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 18)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 Key Data From Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Key Data From Primary Sources
           2.1.3 Secondary and Primary Research
                    2.1.3.1 Key Industry Insights
                    2.1.3.2 Breakdown of Primaries
    2.2 Market Size Estimation
    2.3 Market Breakdown and Data Triangulation
    2.4 Research Assumptions

3 Executive Summary (Page No. - 26)

4 Premium Insights (Page No. - 30)
    4.1 Attractive Growth Opportunities in the Hardware Security Modules Market
    4.2 Hardware Security Modules Market, By Type
    4.3 Hardware Security Modules Market, By Application
    4.4 Hardware Security Modules Market in 2016
    4.5 Geographic Snapshot of the Hardware Security Modules Market, 2017–2022

5 Market Overview (Page No. - 33)
    5.1 Introduction
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 Increase in Data Breaches and Cyberattacks
                    5.2.1.2 Mandate for HSMs Manufacturers to Comply With Internal and External Privacy and Data Security Regulations
                    5.2.1.3 Effective Management of Cryptographic Keys
           5.2.2 Restraints
                    5.2.2.1 Cost Associated With Hardware Security Modules
           5.2.3 Opportunities
                    5.2.3.1 Demand for HSMs for Data Security in the Cloud Environment
                    5.2.3.2 Achieve Point-To-Point Encryption By Complying With Pci Standards
           5.2.4 Challenges
                    5.2.4.1 Discovering Sensitive Data and Understanding the Importance of Protecting This Data By Organizations
                    5.2.4.2 Inability to Control the Key Management From Outside HSM Physical Protection Boundary

6 Industry Trends (Page No. - 39)
    6.1 Introduction
    6.2 Value Chain Analysis
    6.3 Porter’s Five Forces Analysis
           6.3.1 Threat of New Entrants
           6.3.2 Threat of Substitutes
           6.3.3 Bargaining Power of Suppliers
           6.3.4 Bargaining Power of Buyers
           6.3.5 Intensity of Competitive Rivalry
    6.4 Regulatory Landscape
           6.4.1 Regulatory Compliances
           6.4.2 Certifications
    6.5 Emerging Technological Trends
           6.5.1 Cloud-Based HSM Deployments for High Security and High Performance
           6.5.2 Internet of Things (IoT) Empowers the Need for High Security

7 Hardware Security Modules Market, By Type (Page No. - 49)
    7.1 Introduction
    7.2 LAN-Based HSM/Network-Attached HSM
    7.3 Pcie-Based/Embedded Plugins HSM
    7.4 USB-Based/Portable HSM

8 Hardware Security Modules Market, By Deployment Type (Page No. - 57)
    8.1 Introduction
    8.2 On-Premise
    8.3 Cloud

9 Hardware Security Modules Market, By Application (Page No. - 60)
    9.1 Introduction
    9.2 Payment Processing
    9.3 Code and Document Signing
    9.4 Secure Sockets Layer (SSL) and Transport Layer Security (TLS)
    9.5 Authentication
    9.6 Database Encryption
    9.7 PKI Or Credential Management
    9.8 Application-Level Encryption

10 Hardware Security Modules Market, By Industry (Page No. - 72)
     10.1 Introduction
     10.2 Banking and Financial Services
     10.3 Government
     10.4 Technology and Communication
     10.5 Industrial and Manufacturing
     10.6 Energy and Utility
     10.7 Retail and Consumer Products
     10.8 Healthcare and Life Sciences
     10.9 Others

11 Geographical Analysis (Page No. - 86)
     11.1 Introduction
     11.2 North America
             11.2.1 U.S.
             11.2.2 Canada
             11.2.3 Rest of North America
     11.3 Europe
             11.3.1 Germany
             11.3.2 U.K.
             11.3.3 France
             11.3.4 Russia
             11.3.5 Rest of Europe
     11.4 Asia Pacific (APAC)
             11.4.1 Japan
             11.4.2 India
             11.4.3 Australia
             11.4.4 Rest of APAC
     11.5 Middle East and Africa (MEA)
     11.6 Latin America

12 Competitive Landscape (Page No. - 106)
     12.1 Overview
     12.2 Market Ranking Analysis
     12.3 Competitive Situations and Trends
             12.3.1 New Product Launches and Developments
             12.3.2 Contracts, Partnerships, and Agreements
             12.3.3 Expansions
             12.3.4 Mergers, Acquisitions, and Collaborations

13 Company Profile (Page No. - 113)
     13.1 Introduction
     13.2 Gemalto NV
     13.3 Thales E-Security Inc.
     13.4 Utimaco GmbH
     13.5 International Business Machines Corporation
     13.6 Futurex
     13.7 Hewlett Packard Enterprise Company
     13.8 ATOS SE
     13.9 Yubico
     13.10 Ultra Electronics
     13.11 Swift
     13.12 Key Innovators
             13.12.1 Securosys Sa
             13.12.2 Cardcontact Systems GmbH
             13.12.3 Ledger
             13.12.4 Spyrus, Inc.

14 Appendix (Page No. - 140)
     14.1 Insights of Industry Experts
     14.2 Discussion Guide
     14.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     14.4 Introducing RT: Real-Time Market Intelligence
     14.5 Available Customizations
     14.6 Related Reports
     14.7 Author Details

List of Tables (69 Tables)

Table 1 Porter’s Five Forces Analysis
Table 2 Rules and Regulations for Players in the Hardware Security Module Market
Table 3 Certifications Required in the Hardware Security Modules Market
Table 4 HSM Market, By Type, 2014–2022 (USD Million)
Table 5 HSM Market, By Type, 2014–2022 (Thousand Units )
Table 6 HSM Market for LAN-Based HSM/Network-Attached HSM, By Region, 2014–2022 (USD Million)
Table 7 HSM Market for LAN-Based HSM/Network-Attached HSM, By Application, 2014–2022 (USD Million)
Table 8 HSM Market for Pcie-Based/Embedded Plugins HSM, By Region, 2014–2022 (USD Million)
Table 9 HSM Market for Pcie-Based/Embedded Plugins HSM, By Application, 2014–2022 (USD Million)
Table 10 HSM Market for USB-Based/Portable HSM, By Region, 2014–2022 (USD Million)
Table 11 HSM Market for USB-Based/Portable HSM, By Application, 2014–2022 (USD Million)
Table 12 HSM Market, By Deployment Type, 2016–2022 (USD Million)
Table 13 HSM Market, By Application, 2014–2022 (USD Million)
Table 14 HSM Market for Payment Processing, By Region, 2014–2022 (USD Million)
Table 15 HSM Market for Payment Processing, By Type, 2014–2022 (USD Million)
Table 16 HSM Market for Code and Document Signing, By Region, 2014–2022 (USD Million)
Table 17 HSM Market for Code and Document Signing, By Type, 2014–2022 (USD Million)
Table 18 HSM Market for SSL , By Region, 2014–2022 (USD Million)
Table 19 HSM Market for SSL , By Type, 2014–2022 (USD Million)
Table 20 HSM Market for Authentication, By Region, 2014–2022 (USD Million)
Table 21 HSM Market for Authentication, By Type, 2014–2022 (USD Million)
Table 22 HSM Market for Database Encryption, By Region, 2014–2022 (USD Million)
Table 23 HSM Market for Database Encryption, By Type, 2014–2022 (USD Million)
Table 24 HSM Market for PKI Or Credential Management, By Region, 2014–2022 (USD Million)
Table 25 HSM Market for PKI Or Credential Management, By Type, 2014–2022 (USD Million)
Table 26 HSM Market for Application-Level Encryption, By Region, 2014–2022 (USD Million)
Table 27 HSM Market for Application-Level Encryption, By Type, 2014–2022 (USD Million)
Table 28 HSM Market, By Industry, 2014–2022 (USD Million)
Table 29 HSM Market for Banking and Financial Services, By Region, 2014–2022 (USD Million)
Table 30 HSM Market for Banking and Financial Services, By Type, 2014–2022 (USD Million)
Table 31 HSM Market for Government, By Region, 2014–2022 (USD Million)
Table 32 HSM Market for Government, By Region, 2014–2022 (USD Million)
Table 33 HSM Market for Technology and Communication, By Region, 2014–2022 (USD Million)
Table 34 HSM Market for Technology and Communication, By Type, 2014–2022 (USD Million)
Table 35 HSM Market for Industrial and Manufacturing, By Region, 2014–2022 (USD Million)
Table 36 HSM Market for Industrial and Manufacturing, By Type, 2014–2022 (USD Million)
Table 37 HSM Market for Energy and Utility, By Region, 2014–2022 (USD Million)
Table 38 HSM Market for Energy and Utility, By Type, 2014–2022 (USD Million)
Table 39 HSM Market for Retail and Consumer Products, By Region, 2014–2022 (USD Million)
Table 40 HSM Market for Retail and Consumer Products, By Type, 2014–2022 (USD Million)
Table 41 HSM Market for Healthcare and Life Sciences, By Region, 2014–2022 (USD Million)
Table 42 HSM Market for Healthcare and Life Sciences, By Type, 2014–2022 (USD Million)
Table 43 HSM Market for Other Industries, By Region, 2014–2022 (USD Million)
Table 44 HSM Market for Other Industries, By Type, 2014–2022 (USD Million)
Table 45 HSM Market, By Region, 2014–2022 (USD Million)
Table 46 HSM Market in North America, By Country, 2014–2022 (USD Million)
Table 47 HSM Market in North America, By Type, 2014–2022 (USD Million)
Table 48 HSM Market in North America, By Application, 2014–2022 (USD Million)
Table 49 HSM Market in North America, By Industry, 2014–2022 (USD Million)
Table 50 HSM Market in Europe, By Country, 2014–2022 (USD Million)
Table 51 HSM Market in Europe, By Type, 2014–2022 (USD Million)
Table 52 HSM Market in Europe, By Application, 2014–2022 (USD Million)
Table 53 HSM Market in Europe, By Industry, 2014–2022 (USD Million)
Table 54 HSM Market in APAC, By Country, 2014–2022 (USD Million)
Table 55 HSM Market in APAC, By Type, 2014–2022 (USD Million)
Table 56 HSM Market in APAC, By Application, 2014–2022 (USD Million)
Table 57 HSM Market in APAC, By Industry, 2014–2022 (USD Million)
Table 58 HSM Market in MEA, By Region, 2014–2022 (USD Million)
Table 59 HSM Market in MEA, By Type, 2014–2022 (USD Million)
Table 60 HSM Market in MEA, By Application, 2014–2022 (USD Million)
Table 61 HSM Market in MEA, By Industry, 2014–2022 (USD Million)
Table 62 HSM Market in Latin America, By Type, 2014–2022 (USD Million)
Table 63 HSM Market in Latin America, By Application, 2014–2022 (USD Million)
Table 64 HSM Market in Latin America, By Industry, 2014–2022 (USD Million)
Table 65 Ranking of Top 5 Market Players, 2015
Table 66 New Product Launches and Developments (2014–2017)
Table 67 Contracts, Partnerships, and Agreements (2014–2016)
Table 68 Expansion (2016)
Table 69 Mergers, Acquisitions, and Collaborations (2014–2016)

List of Figures (59 Figures)

Figure 1 Hardware Security Modules Market Segmentation
Figure 2 Hardware Security Modules Market: Research Design
Figure 3 Market Size Estimation Methodology: Bottom-Up Approach
Figure 4 Market Size Estimation Methodology: Top-Down Approach
Figure 5 Data Triangulation
Figure 6 USB-Based/Portable HSM Expected to Grow at the Highest Rate During the Forecast Period
Figure 7 Payment Processing Application to Hold the Largest Size of the Hardware Security Modules Market During the Forecast Period
Figure 8 Banking and Financial Services Held the Largest Size of Hardware Security Modules Market in 2016
Figure 9 Europe Held the Largest Share of the Hardware Security Modules Market in 2016
Figure 10 Hardware Security Modules Market Expected to Rise at A Moderate Rate During the Forecast Period
Figure 11 LAN-Based/Network-Attached HSM to Exhibit the Largest Size of the Hardware Security Modules Market During the Forecast Period
Figure 12 The Payment Processing Application Held the Largest Market Size in 2016
Figure 13 Europe Held the Largest Share of the Hardware Security Modules Market in 2016
Figure 14 Indian Hardware Security Modules Market Expected to Grow at the Highest Rate Between 2017 and 2022
Figure 15 Hardware Security Modules Market: Drivers, Restraints, Opportunities, and Challenges
Figure 16 Number of Data Breach Incidents Over Time, By Industry
Figure 17 Value Chain Analysis: Major Value is Added During the Original Equipment Manufacturing and System Integration Phases
Figure 18 Porter’s Five Force Model for Hardware Security Modules Market, 2016
Figure 19 Porter’s Five Forces Analysis
Figure 20 Medium Impact of Threat of New Entrants on the HSM Market
Figure 21 Low Impact of the Threat of Substitutes on the HSM Market
Figure 22 High Impact of Bargaining Power of Suppliers on the HSM Market
Figure 23 Low Impact of Bargaining Power on the HSM Market
Figure 24 High Impact of Intensity of Competitive Rivalry on the HSM Market
Figure 25 Hardware Security Modules Market Segmentation, By Type
Figure 26 USB-Based HSM Segment Expected to Exhibit the Highest Growth Rate During the Forecast Period
Figure 27 Europe to Dominate the Market for USB-Based/Portable Hardware Security Modules During the Forecast Period
Figure 28 Hardware Security Module Market, By Deployment Type
Figure 29 Hardware Security Modules Market Segmentation, By Application
Figure 30 Payment Processing Application to Dominate the HSM Market During the Forecast Period
Figure 31 Europe Expected to Held the Largest Market Share for the Authentication Application in the HSM Market During the Forecast Period
Figure 32 Hardware Security Modules Market, By Industry
Figure 33 Banking and Financial Services to Lead the HSM Market During the Forecast Period
Figure 34 Hardware Security Modules Market Segmentation, Geography
Figure 35 Hardware Security Modules Market Snapshot in North America
Figure 36 HSM Market Segmentation in North America
Figure 37 U.S. to Dominate the HSM Market in North America During the Forecast Period
Figure 38 Hardware Security Modules Market Snapshot in Europe
Figure 39 HSM Market Segmentation in Europe
Figure 40 Germany to Lead the European HSM Market During the Forecast Period
Figure 41 Hardware Security Modules Market Snapshot in APAC
Figure 42 HSM Market Segmentation in APAC
Figure 43 Japan to Dominate the HSM Market in APAC During the Forecast Period
Figure 44 Payment Processing Application to Hold the Largest Share of the HSM Market in the Middle East and Africa During the Forecast Period
Figure 45 Organic and Inorganic Strategies Adopted By Companies in the Hardware Security Modules Market
Figure 46 Battle for Market Share: New Product Launches and Developments Were the Key Strategies
Figure 47 Market Evaluation Framework
Figure 48 Gemalto NV: Company Snapshot
Figure 49 Gemalto NV: SWOT Analysis
Figure 50 Thales E-Security: Company Snapshot
Figure 51 Thales E-Security Inc.: SWOT Analysis
Figure 52 Utimaco GmbH: SWOT Analysis
Figure 53 International Business Machines Corporation: Company Snapshot
Figure 54 IBM Corporation: SWOT Analysis
Figure 55 Futurex: SWOT Analysis
Figure 56 Hewlett Packard Enterprise Company: Company Snapshot
Figure 57 ATOS SE: Company Snapshot
Figure 58 Ultra Electronics: Company Snapshot
Figure 59 Swift: Company Snapshot

The hardware security modules market is expected to reach USD 1,101.2 Million by 2022, at a CAGR of 12.87% during the forecast period. The performance and characteristics of the hardware security modules depend largely upon the applications for which HSMs are deployed to provide the encryption key management for data and information security. The hardware security modules are used in several industries due to the security assurance and the benefits provided by HSMs to comply with the regulatory compliances for data security.

The hardware security modules market has been segmented on the basis of type into LAN-based HSM/network-attached HSM, PCIe-based/embedded plugins HSM, and USB-based/portable HSM. The demand for USB-based/portable plugins HSMs is expected to grow in the future owing to the benefits such as lower cost compared to the LAN-based/network-attached HSMs and PCIe-based/embedded plugin HSMs, compact size, and portability features.

The hardware security modules market has been segmented on the basis of deployment type into On-premise and cloud deployment. The demand for cloud deployment is expected to grow at the highest rate during the forecast period owing to the service provides by the cloud deployment to safeguard cryptographic keys with the same dynamic and virtualized attributes of cloud computing environments.

The hardware security modules market, on the basis of application, has been segmented into payment processing, code and document signing, secure sockets layer (SSL) and transport layer security (TLS), authentication, database encryption, PKI or credential management, and application-level encryption. Authentication plays an important role in securing the data and information by proving the secure key exclusively to the authorized person for making any transaction, logging in, or performing any administrative process. Therefore, the deployment of HSMs for the authentication application is increasing rapidly and is expected to grow at a faster rate during the forecast period.

The hardware security modules market, on the basis of industry, has been segmented into banking and financial services, government, technology and communications, industrial and manufacturing, energy and utility, retail and consumer products, and healthcare and life sciences, among others. The market for other industries, which include media and entertainment, education, and transportation industries, is expected to grow at a high rate, followed by the retail and consumer products industry.

Latin America is expected to be the fastest-growing market for the hardware security modules, followed by APAC during the forecast period. The market in Latin America is expected to grow at the highest rate during the forecast period owing to the formulation of new regulatory compliances and the adoption of modern technologies such as cloud and IoT, which create a huge opportunity for data and information security.

Key players in this market focus on new product developments, strategic partnerships, acquisitions, and agreements to increase their revenue. For instance, in February 2017 Utimaco launch its new product which gives cloud applications a much-needed security boost with the latest version of its SecurityServer line of hardware security modules (HSMs). The Utimaco SecurityServer 4.10 is a new generation of HSM optimized for cloud applications providing unrivaled flexibility and security for HSM-as-a-Service usage in the cloud.

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