Security IP Market Accelerates as OEM Demand for Integrated, Certification-Ready Components Surges

Security IP is entering a new phase of accelerated growth as OEMs push for fully integrated, certification‑ready security components across semiconductor designs. According to global technology intelligence firm ABI Research, rising demand for secure Root of Trust (RoT), key provisioning, authentication, and post‑quantum‑ready cryptography (PQC) is reshaping supplier strategies and driving market consolidation. 

“OEMs are looking for certified embedded security solutions that can be personalized to their use cases,” said Michela Menting, Vice President at ABI Research. “This shift is transforming the IP landscape, forcing providers to innovate beyond standalone crypto blocks. In this context, semiconductors and chipmakers must now consider full‑stack, configurable security platforms that can scale across a wide range of SoCs and better comply with emerging regulatory requirements through certification programs like FIPS. CC, and SESIP, for example.”

Security IP is increasingly delivered as bundled subsystems, combining cryptographic libraries, firmware, and RoT modules, under mixed-revenue models. These integration trends are accelerating collaboration between hardware IP vendors, software stack providers, and chipmakers to deliver configurable platforms with consistent APIs and multi-certification alignment. While licenses dominate up-front cash flow, it is services, a traditionally small part of IP revenues, that are a rising component, priced anywhere between 10% and 30% of the initial licenses, and with a much longer tail end in view of growing crypto-agility demands.

Market consolidation has also intensified, with acquisitions such as Synopsys integrating Elliptic Technologies and Intrinsic ID, and Cadence acquiring Secure‑IC to build vertically unified secure‑element platforms. Meanwhile, providers like Rambus, FortifyIQ, and Xiphera are differentiating through post‑quantum agility, side‑channel protection, and high‑performance MACsec/IPsec engines aimed at AI, data center, and IoT designs.

“Security IP is increasingly becoming a platform play, with turnkey certification and configurability defining the next competitive frontier in secure semiconductor design,” said Menting.

These findings are from ABI Research’s Security IP: Design Integration & Pricing Strategies report, part of the company’s Trusted Device Solutions research service, which includes research, data, and ABI Insights.