HSM Convergence Accelerating to Deliver a US$229 Million Service-Based Market Opportunity by 2027

29 Mar 2023

Hardware Security Module (HSM) technologies continue accelerating toward application-first market solutions. Underpinned by converged platform offerings, vendors now focus on the opportunities delivered from a service-based perspective, according to a new report by global technology intelligence firm ABI Research

“The strict separation between general-purpose and payment HSMs is dissolving quickly,” explains Michela Menting, Cybersecurity Applications Research Director at ABI Research. “In their latest flagships, many HSM original equipment manufacturers opt to provide just one converged hardware platform tailored to the applications through software packages.” Most HSM OEMs seek to provide all the necessary certifications (FIPS 140-3, PCI PTS HSM v2, and increasingly CC+ EAL) as a baseline for that converged hardware. The differentiation becomes a software and licensing matter that can be easily modified and configured remotely, enabling users to service new applications as their business evolves. 

This malleability from a software perspective is key to unlocking the potential of the service-based HSM opportunity, whether managed or hosted (HSM-as-a-Service). Both for enterprise users and managed service providers, it allows for repurposing the HSM for other applications without purchasing new hardware. Further, with advanced hardware capabilities for multi-tenancy and virtualization, HSMs can offer greater multi-usage performance. ABI Research forecasts service-based revenue to reach US$229 million globally by 2027.  

“Better understanding by enterprises of the need to leverage trusted services for their cloud migration and digital transformation is a significant driver for HSM applications, with OEMs targeting new markets and use cases not only in the enterprise (SMBs) but also in manufacturing, automotive, telco, and utilities. The HSM market is constantly evolving and ripe for innovation,” Menting concludes.

Top HSM OEMs in the space include Crypto4A, Entrust, Futurex, IBM, Kryptus, Marvell, Sansec, Securosys, Thales, and Utimaco.

These findings are from ABI Research’s Hardware Security Modules market data report. This report is part of the company’s Cybersecurity Applications research service, which includes research, data, and ABI Insights. Market Data spreadsheets comprise deep data, market share analysis, and highly segmented, service-specific forecasts to provide detailed insight into 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