Details About the Global Hardware Security Modules (HSM) Market

The hardware security modules market witnesses rapid traction across the globe. The increasing demand for solutions that can offer securely controlled access to an organization’s sensitive private keys substantiates market revenues. Also, the growing awareness of the importance of HSM technology in enhancing an organization’s digital security boosts the market demand.

The impact of the cutting-edge intersection of finances and technologies across the globe favors market growth. Citing the growing concerns among organizations on their digital security, MRFR expects the global hardware security modules market to witness significant demand and garner USD 3.1 billion by 2030, expanding at a 14.4% CAGR during the review period (2022-2030). 

What are Hardware Security Modules?

Hardware security modules (HSM) are critical components for managing sensitive data. They are designed to control access and limit risk to the company’s sensitive private keys, making secure storage and cryptographic key operations possible. Over the past few years, HSM usage has been steadily increasing. All major organizations use HSMs for their tamper-proof and intrusion-resistance in protecting and storing their cryptographic keys and restrict their use to authorized users only. 

HSMS are used by organizations across industries, including certificate authorities (public & private) and government & public sector organizations. Banks, financial institutions, and credit card providers extensively use HSMS. Also, companies such as cloud service providers & vendors, blockchain platforms & entities, and IoT device developers & manufacturers create vast market demand. 

However, auto manufacturers and entertainment service providers are the largest end-users of hardware security modules. Automakers use HSMs to advance vehicle safety and security features that require SoCs with integrated security systems. With the rising automation and digitization in the automotive sector, hardware security modules have become imperative for chip/semiconductor manufacturers to create secure channels for remote device management & service deployment.

How HSMs Work

Generally, HSMs are not part of servers and are standalone network-connected devices that secure cryptographic keys through all lifecycle stages, from generation through their destruction or revocation. HSMs are tamper-resistant devices that protect the organization’s cryptographic operations and services from all kinds of logical and physical attacks through zeroization. 

They are built to erase/destroy all stored cryptographic data to prevent compromise. In addition to protecting all cryptographic keys, HSMs also serve many other purposes and uses, such as enhancing IT & data security and PKI & general cybersecurity. With their built-in true random number generators (TRNGs), HSMs generate random & unpredictable cryptographic keys for PKI certificates. 

HSM helps to prevent key exposure within the secure, standalone environment by restricting functions such as signing PKI certificates, applications, and documents. HSM devices can act as web traffic accelerators by offloading cryptographic operations and improving server performance via load balancing. They can take on the responsibility of performing operations that can slow down servers.

As validated hardware components that meet specific industry standards, HSMs are typically used to ensure compliance with regulations for data security and simplify audit processes. They also provide tamper-resistant logs about what cryptographic operations they are used to perform, the time & duration of when these operations are carried out, and who authorized those operations.

How HSM Can Benefit Business

Using a hardware security module provides significantly more secure key storage than traditional web servers. Though the cost of setting up an HSM is far higher than using a web server’s built-in functionalities, web servers can create vulnerabilities that cybercriminals can easily exploit. An HSM helps organizations secure their private code signing keys and avoid exposure issues like third-party (Codecov) security incidents.

HSMs are devices with limited usage and& attack vectors. Therefore public certificate authorities & registration authorities use them to create, store and manage their sensitive keypairs. Moreover, companies with private PKIs use HSMs to store the keys required to sign their PKI certificates, software codes, and documents.

North America Dominates the Global Hardware Security Modules Market

The wide uptake and advances in security technologies and integration techniques substantiate the market growth. The risk of compromised sensitive information or data loss is becoming a paramount concern in the region. Government agencies and various major enterprises are increasingly shifting their important data, services, and processes to the cloud, creating significant market demand. 

The digital transformation, early adoption of cloud-based solutions, and increased cloud initiatives by the governments drive the region’s market shares. The strong presence of notable market players and digital companies creates vast demand for hardware security module services. With the well-established internet infrastructure and demand for strong hardware security modules, the US accounts for the leading market in the region.