Hardware Security Module Market Growth Driven by Service Models and New Applications in Enterprise to Reach US$1.2 Billion by 2026

25 Jan 2022

The Hardware Security Module (HSM) market is niche, specialized, and hard to penetrate, but it is on track for expansion. Increased focus on service capabilities, driven by enterprise digital transformation strategies, including cloud demand and IoT growth, is intensifying demand in new applications and delivery models. Global technology intelligence firm ABI Research forecasts the market to hit over one billion dollars in revenues by 2024.

Users of HSM products have traditionally been driven to purchase by regulation compliance requirements (notably payment transaction and data protection legislation), as well as the protection of large business assets (users and systems). “This specific focus, and the complexity of operating HSMs, has rather restrained the opportunity for HSM products to large and regulated organizations, resulting in a slow-growing and rather monolithic market dominated by well-established and highly specialized vendors,” explains Michela Menting, Cyber and Digital Security Research Director at ABI Research.

However, the offer of service-models has proven increasingly popular over the years, and in particular cloud-based services. The advantages of HSM-as-a-Service (HSMaaS) are numerous: high scalability, flexibility, greater choice of features and use cases, no capex, and no maintenance requirements. They allow enterprises to take more risks in testing new use cases (for example in digital payments or blockchain) and they appeal to smaller and medium sized businesses outside of that traditional target market, as the cost involved, and skill set required is much lower.

The appeal of HSMaaS is set to drive growth in HSM hardware adoption and an expansion of the install base. This will serve untapped markets in the SMB space, and new demands in IoT and 5G applications. To meet these, hardware offerings are increasingly flexible, customizable, and updatable to enable new and extended usage, such as converged HSMs that have both payment and GP functionalities, emphasis on multi-tenancy capabilities, and ability to deploy various APIs, among many others.

This has also meant that new players are entering the market, from cloud service providers, cloud security vendors and data infrastructure vendors (Fortanix, Marvell) to smaller companies (niche players like Atos, Kryptus, Dinamo Networks, Sansec, Procenne, Securosys, Ultra Electronics), breaking-out of their mold and challenging the status quo. This is driving the vendors with the more established products (Thales, Entrust, Utimaco, IBM, Futurex) to evolve and adapt their offerings, through internal development, acquisitions, and market expansion strategies.

“Consequently, the HSM market today is dynamized, prompting innovation and diversification in product offerings and pricing models. The HSM space is one to watch closely as new opportunities will continue to emerge,” Menting concludes.

These findings are from ABI Research’s Hardware Security Modules Market Data report. This report is part of the company’s Trusted Device Solutions research service, which includes research, data, and ABI Insights. Market Data spreadsheets are composed of deep data, market share analysis, and highly segmented, service-specific forecasts to provide detailed insight where opportunities lie.


About ABI Research

ABI Research is a global technology intelligence firm delivering actionable research and strategic guidance to technology leaders, innovators, and decision makers around the world. Our research focuses on the transformative technologies that are dramatically reshaping industries, economies, and workforces today.

ABI Research提供开创性的研究和战略指导,帮助客户了解日新月异的技术。 自1990年以来,我们已与全球数百个领先的技术品牌,尖端公司,具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。

For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.

Contact ABI Research

Media Contacts

Americas: +1.516.624.2542
Europe: +44.(0).203.326.0142
Asia: +65 6950.5670

Related Research

Related Service