The global hardware security modules market size was valued at $3.1 billion in 2020 and is projected to reach $7.9 billion by 2028, growing at a CAGR of 12.4% from 2021 to 2028, according to Verified Market Research.
With the rising frequency and complexity of data security threats, the need for implementing a data security threat is prevalent and one of the factors contributing to the market growth. There is a surge in technological advancements that have created a demand for security solutions.
The hardware security modules help to safeguard the user’s personal information, digital transactions, and sensitive organization’s assets against exposure and manipulations. Moreover, the increasing adoption of hardware security modules in various end-use industries like banking and financial services, government, technology, and communications, manufacturing, utility and energy, retail, healthcare, and life sciences drive the market for hardware security modules.
Hardware security modules market expansion barriers
However, the high deployment cost may act as a barrier to the expansion of the market during the forecast period. Hardware security modules are designed with older generation expertise to present substantial barriers to adoption.
Firstly, they are developed using commercial hardware that has a high preliminary acquisition cost. Secondly, they bring substantial complexity and cost of operations. In many cases, the staff costs to handle and control these modules greatly surpass the module cost.
The total cost and complexity are not affordable for many companies, leading to critical gaps in encryption key management for data protection. However, new technologies enable businesses to reassess their cost analysis and implement stronger security controls with low initial investments.
Organizations are finding that next-generation hardware security modules and keys management capabilities offered as a subscription-based approach deliver powerful data protection and reduced the total cost of ownership.
Cryptography at the hardware level is the root of providing security to many processes like document signing, authentication, and application-level encryption. If these processes are not managed, they might become complex, expensive, and risk-prone.
For managing the entire life cycle of keys, hardware security modules are used. They are dedicated cryptographic hardware modules that create an isolated zone for the cryptographic functions. Key management is generally employed within an organization’s IT infrastructure to manage the number and diversity of keys.