SOURCE RESEARCH
Hardware Security Modules
Market Data | 2Q 2026 | MD-HSM-105
Get The ReportAccording to ABI Research, total Hardware Security Module (HSM) shipments are expected to increase from 63K units in 2026 to 85.9K by 2031, growing at a Compound Annual Growth Rate (CAGR) of 6.4%.
Financial services and enterprises remain the largest HSM markets, with financial institutions driving most payment and general-purpose (GP) HSM demand. Combined, these two verticals account for about 45% of total HSM shipments throughout our forecast.
However, growth is emerging across several other sectors:
Government: Demand is increasing for digital asset protection, eIDAS compliance, digital IDs, and digital wallet infrastructure, particularly in Europe.
Manufacturing: Early adoption of PQC-ready HSMs is concentrated among semiconductor and device manufacturers. Secure manufacturing remains a key use case, especially for embedding Roots of Trust (RoTs) into silicon. Many deployments already use LMS-based RoTs, while USB HSMs are commonly used to generate and distribute keys to network HSMs in manufacturing environments.
Telecom: Demand tied to 5G and Embedded Subscriber Identity Module (eSIM) deployments is rising, driven by telecom security incidents and earlier investments in 5G cryptographic infrastructure.
Healthcare: HSM adoption is driven by the need to protect highly sensitive electronic patient data and to secure medical devices.
For our full vertical-level HSM market shipments and revenue forecast, download the latest market data.
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