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3. Hardware Security Modules Companies - Thales (France) amd Utimaco (Germany) are the Key Players

The hardware security modules market is projected to grow from USD 1.2 billion in 2023 and is projected to reach USD 2.3 billion by 2028; it is expected to grow at a CAGR of 13.5% from 2023 to 2028.

The growth of the hardware security modules market is driven by increasing data breaches and cyberattacks, need to follow stringent data security compliances, and emergence of digital transactions, electronic payments leading to rise in the need for protecting sensitive financial data.

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Key strategies adopted by the players in the hardware security modules market ecosystem to enhance their product portfolios, increase their market share and expand their presence in the market mainly include new product launches and partnerships and acquisitions.

• Thales (France)
• Microchip Technology (US)
• Utimaco

For instance, in August 2023,  Thales (France) announced the launch of Thales payShield Cloud HSM, a subscription-based digital payments security service built on its market-leading payShield 10K Payment Hardware Security Module (HSM) technology to help customers accelerate the adoption of cloud-based payments infrastructure.

In October 2023, Microchip Technology (US) announced a new family of PIC32CZ CA 32-bit microcontrollers with a 300 MHz Arm Cortex-M7 processor, an integrated Hardware Security Module (HSM), and a wide range of connectivity and Flash memory options for added flexibility. The new family of PIC32CZ CA devices includes the PIC32CZ CA90 with a HSM or the PIC32CZ CA80 without the integrated HSM. The HSM in the PIC32CZ CA90 is a monolithic solution that provides advanced security for industrial and consumer applications. The HSM operates as a secure subsystem with a separate MCU on board that runs the firmware and security features including hardware secure boot, key storage, cryptographic acceleration, true random number generator and more.

Thales is one of the leaders in hardware security modules. The company has a well-established geographic footprint and mainly deals with major OEMs/ODMs worldwide. It continues to lead in developing new products for the encryption market. Thales is considered one of the pioneers in hardware security modules and offers high brand value by offering premium and high-quality hardware security modules. It has a wide geographic presence with offices worldwide. The company’s business risk in the highly volatile sector is decreased by its diverse geographic presence. Globally, it operates in around 56 countries. It focuses on developing innovative products and solutions related to the hardware security modules market through its strong technical expertise. The company has a robust financial background and invests significantly in R&D activities. It focuses on providing hardware security modules for new use cases across smart retail, infrastructure, and institutional applications. The majority of the company’s revenue is generated from its Digital Identity & Security division. The segment provides digital identity and security solutions for private and government customers. Thales is highly focused on R&D, which has resulted in strong organic growth and robust market positioning in product development in the encryption market. The company is uniquely positioned as one of the pioneer companies in the HSM market, offering a broad product portfolio. Thales has enhanced its HSM product portfolio by developing all-in-one software solutions that cover the full range of customers’ needs, including content creation and scheduling, interactive e-board presentations, and in-house hotel media management. Thales has improved cost competitiveness in the HSM ecosystem by increasing its production yields by developing advanced process technologies, better and more efficient hardware security modules, and internally producing core manufacturing equipment. The company has focused on adopting organic and inorganic strategies to cement its position as the hardware security modules market leader. This includes various product launches and acquisitions, contracts, collaborations, and partnerships with businesses worldwide. For instance, in February 2020, Thales entered into a partnership  with Fujitsu (Japan) to leverage Thales Cloud hardware security modules and Data Protection on Demand for providing a highly secure and convenient end-to-end service for enterprise public key infrastructure (PKI). Additionally, Fujitsu integrated the Thales Key Management platform with its new enterprise data encryption service to offer secure lifecycle management of cryptographic keys of customers. The partnership ensured enhanced security, compliance, and a cost-effective encryption solution for clients. In 2019, the group acquired Gemalto to bring innovation in digital security products. Thales will cover the entire critical decision chain in the digital world with Gemalto, from sensor-based data generation to real-time decision support. This acquisition will increase Thales’s revenues to €19 billion and self-funded R&D to €1 billion annually, with 80,000 employees in 68 countries.

Utimaco is one of the global providers in advanced cybersecurity solutions. Utimaco has been instrumental in the the development of hardware-based, high-security appliances (hardware security modules) and compliance solutions. Utimacoh has earned the trust of its clients and partners worldwide, due to its long-term established dependability as well as investment protection, along with its various approved IT security standards. Utimaco is a brand that symbolizes product quality, user-friendly software, superior services, and reliable high-security solutions. Acquisitions and partnerships have been key components of Utimaco’s growth strategy. Utimaco acquired the Atalla line of hardware security modules acquired from Micro Focus for its product portfolio related to the payment and banking industry as banks and financial organizations look to deploy innovative, secure solutions. In June 2021, Utimaco acquired Realsec, a hardware security provider. Realsec will provide its expertise in key management, hardware security modules, compliance, and regulations to the Utimaco Group. In March 2021, Utimaco partnered with HPS (Morocco), a leading global provider of payment solutions. Through this partnership, HPS integrated Utimaco’s hardware security module Atalla AT1000 into PowerCARD, HPS’ comprehensive suite of solutions that covers the entire payment value chain.

Related Reports:

Hardware Security Modules Market by Deployment Type (Cloud, On-premise), Type (LAN Based /Network Attached, PCI Based/Embedded Plugins, USB Based/Portable, Smart Cards), Application, Vertical and Region-Global Forecast to 2028

Contact:
Mr. Aashish Mehra
MarketsandMarkets™ INC.
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Northbrook, IL 60062
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