The Global Hardware Secure Module (HSM) Adapters Market size is expected to reach $2.4 billion by 2028, rising at a market growth of 11.7% CAGR during the forecast period.
Hardware security modules (HSMs) adapters allow a system or application to use an external HSM. An HSM is a hardware device that performs cryptographic computation and preserves digital keys for secure authentication. To offload security-critical operations like decryption, encryption, and signing, an external HSM is connected to the application or system by an HSM adapter.
This can help to ensure the confidentiality and integrity of sensitive data and defend against assaults on the application or system. In financial, governmental, and other organizations that deal with sensitive data, HSMs are frequently employed to safeguard transactions and communications. In addition to other security measures like intrusion detection systems and firewalls, HSM adapters are frequently employed.
They can be implemented as a standalone piece of hardware or as a software component. The market for hardware secure module (HSM) adapters is anticipated to expand significantly throughout the forecast period due to the rise in cyberattacks, rising use of cloud-based services, and increasing preference for electronic payments. Additionally, as 5G becomes more prevalent, technological developments in the internet of things (IoT) and an increase in demand for hardware security modules are predicted to offer attractive prospects for expanding the market.
The HSM adapter claims to provide the fastest acceleration and processing for cryptography, as well as hardware-secured key storage of up to one million keys. These gadgets may come in plugin cards or be built into other hardware, such as smart cards, home appliances, and other extraneous gadgets. They can also be in conjunction with a network server or can be provided as cloud services.
COVID-19 Impact Analysis
The COVID-19 outbreak significantly negatively affected the growth of the hardware security module (HSM) adapters market due to its major effects on key companies in the supply chain. The pandemic primarily caused several challenges for the market, including a shortage of skilled labor and project delays or cancellations due to a partial or total lockdown around the world. Because of lockdowns imposed by the government to control the spread of the infection, manufacturers worldwide were unable to add new hardware security modules due to the government's implementation of strict regulations, which disrupted supply chains.
Market Growth Factors
Rapid implementation and development of 5G networks
Sensitive data is consistently protected across on-premises, cloud, and hybrid storage using encryption and crypto key management. These technologies meet the performance, flexibility, and scalability requirements for subscriber privacy and authentication security from the data center to the periphery. Hardware security modules further secure cryptographic infrastructures, such as digital certificate management for mobile towers. The demand for data security is projected to rise in the upcoming years, raising the need for hardware security modules (HSM) adapters.
Increased use of mobile banking apps along with rapid IOT integration
Strong security systems are necessary to secure people's identities, applications, cryptographic keys, data, and other sensitive information because of the rise in internet banking, communications, health care, digital payments, and life sciences. This procedure increases the growth factor for HSMsolutions. The market is steadily expanding as more and more cloud computing, and internet of things (IoT)technologies are being adopted. Thus, using HSMs to safeguard sensitive information and the keys that go with it in non-cash commercial payment transactions is anticipated to increase demand for HSM adapters and thus propel the growth of the market.
Market Restraining Factors
Frequent upkeep and upgrading requirements
A remote, unauthorized attacker can take complete control of the vendor's hardware security module because of the weaknesses. Remote access to all HSM credentials, including administrator credentials and cryptographic keys, is made available by these attacks. Attackers can upload modified firmware to the hardware security module by taking advantage of a cryptographic hole in the firmware signature verification. Businesses are therefore required to regularly maintain and upgrade HSMs, which comes at a high expense, in order to avoid these issues. The market for hardware security modules (HSM) adapters is being restricted by this aspect.
Type Outlook
Based on type, the hardware secure module (HSM) adapters market is categorized into LAN based/network attached, PCI based, USB based, and smart cards. The USB based segment procured a considerable growth rate in the hardware secure module (HSM) adapters market in 2021. In addition to other uses, USB-based HSM is utilized for code & document signing, digital signature, and secure key storage. These modules are best suited for offline applications where the module must be portable or kept in a physical safe while not in use.
Industry Outlook
By industry, the hardware secure module (HSM) adapters market is divided into aerospace & defense, banking financial services & insurance, transportation, retail, and others. The banking financial services and insurance (BFSI) segment acquired the largest revenue share in the hardware secure module (HSM) adapters market in 2021. HSM adapters are essential for protecting private keys and safely storing encryption keys in a hardware-based back-end framework. This is necessary to verify security in banking facilities, banking card personalization systems, online banking,trade finance, foreign exchange, international payments, bank guarantee, as well as other related applications associated with the BFSI vertical.
Regional Outlook
Based on region, the hardware secure module (HSM) adapters market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment procured the highest revenue share in the hardware secure module (HSM) adapters market in 2021. Hardware security modules have a huge, unrealized potential in the Europe region. The trusted platform module (TPM) and secure hardware extension (SHE)specifications have various capabilities that are shared by the three HSM security levels(full, light, and medium). In the coming years, the regional governments' biometric initiatives and national ID card contracts will increase the demand for HSM adapters used for authentication in the region.
The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include Thales Group S.A., Microchip Technology, Inc., Infineon Technologies AG, Atos Group, Hewlett Packard Enterprise Company (HP Development Company L.P.), IBM Corporation, Futurex LP, STMicroelectronics N.V., Utimaco Management GmbH (SGT Capital), and Securosys SA.
Scope of the Study
By Industry
- BFSI
- Retail
- Transportation
- Aerospace & Defense
- Others
By Type
- LAN Based / Network Attached
- USB Based
- PCI Based
- Smart Cards
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Thales Group S.A.
- Microchip Technology, Inc.
- Infineon Technologies AG
- Atos Group
- Hewlett Packard Enterprise Company(HP Development Company L.P.)
- IBM Corporation
- Futurex LP
- STMicroelectronics N.V.
- Utimaco Management GmbH (SGT Capital)
- Securosys SA
Unique Offerings
- Exhaustive coverage
- The highest number of Market tables and figures
- Subscription-based model available
- Guaranteed best price
- Assured post sales research support with 10% customization free
Table of Contents
Chapter 1. Market Scope & Methodology1.1 Market Definition
1.2 Objectives
1.3 Market Scope
1.4 Segmentation
1.4.1 Global Hardware Secure Module (HSM) Adapters Market, by Industry
1.4.2 Global Hardware Secure Module (HSM) Adapters Market, by Type
1.4.3 Global Hardware Secure Module (HSM) Adapters Market, by Geography
1.5 Methodology for the research
Chapter 2. Market Overview
2.1 Introduction
2.1.1 Overview
2.1.1.1 Market Composition & Scenario
2.2 Key Factors Impacting the Market
2.2.1 Market Drivers
2.2.2 Market Restraints
Chapter 3. Global Hardware Secure Module (HSM) Adapters Market by Industry
3.1 Global BFSI Market by Region
3.2 Global Retail Market by Region
3.3 Global Transportation Market by Region
3.4 Global Aerospace & Defense Market by Region
3.5 Global Others Market by Region
Chapter 4. Global Hardware Secure Module (HSM) Adapters Market by Type
4.1 Global LAN Based / Network Attached Market by Region
4.2 Global USB Based Market by Region
4.3 Global PCI Based Market by Region
4.4 Global Smart Cards Market by Region
Chapter 5. Global Hardware Secure Module (HSM) Adapters Market by Region
5.1 North America Hardware Secure Module (HSM) Adapters Market
5.1.1 North America Hardware Secure Module (HSM) Adapters Market by Industry
5.1.1.1 North America BFSI Market by Country
5.1.1.2 North America Retail Market by Country
5.1.1.3 North America Transportation Market by Country
5.1.1.4 North America Aerospace & Defense Market by Country
5.1.1.5 North America Others Market by Country
5.1.2 North America Hardware Secure Module (HSM) Adapters Market by Type
5.1.2.1 North America LAN Based / Network Attached Market by Country
5.1.2.2 North America USB Based Market by Country
5.1.2.3 North America PCI Based Market by Country
5.1.2.4 North America Smart Cards Market by Country
5.1.3 North America Hardware Secure Module (HSM) Adapters Market by Country
5.1.3.1 US Hardware Secure Module (HSM) Adapters Market
5.1.3.1.1 US Hardware Secure Module (HSM) Adapters Market by Industry
5.1.3.1.2 US Hardware Secure Module (HSM) Adapters Market by Type
5.1.3.2 Canada Hardware Secure Module (HSM) Adapters Market
5.1.3.2.1 Canada Hardware Secure Module (HSM) Adapters Market by Industry
5.1.3.2.2 Canada Hardware Secure Module (HSM) Adapters Market by Type
5.1.3.3 Mexico Hardware Secure Module (HSM) Adapters Market
5.1.3.3.1 Mexico Hardware Secure Module (HSM) Adapters Market by Industry
5.1.3.3.2 Mexico Hardware Secure Module (HSM) Adapters Market by Type
5.1.3.4 Rest of North America Hardware Secure Module (HSM) Adapters Market
5.1.3.4.1 Rest of North America Hardware Secure Module (HSM) Adapters Market by Industry
5.1.3.4.2 Rest of North America Hardware Secure Module (HSM) Adapters Market by Type
5.2 Europe Hardware Secure Module (HSM) Adapters Market
5.2.1 Europe Hardware Secure Module (HSM) Adapters Market by Industry
5.2.1.1 Europe BFSI Market by Country
5.2.1.2 Europe Retail Market by Country
5.2.1.3 Europe Transportation Market by Country
5.2.1.4 Europe Aerospace & Defense Market by Country
5.2.1.5 Europe Others Market by Country
5.2.2 Europe Hardware Secure Module (HSM) Adapters Market by Type
5.2.2.1 Europe LAN Based / Network Attached Market by Country
5.2.2.2 Europe USB Based Market by Country
5.2.2.3 Europe PCI Based Market by Country
5.2.2.4 Europe Smart Cards Market by Country
5.2.3 Europe Hardware Secure Module (HSM) Adapters Market by Country
5.2.3.1 Germany Hardware Secure Module (HSM) Adapters Market
5.2.3.1.1 Germany Hardware Secure Module (HSM) Adapters Market by Industry
5.2.3.1.2 Germany Hardware Secure Module (HSM) Adapters Market by Type
5.2.3.2 UK Hardware Secure Module (HSM) Adapters Market
5.2.3.2.1 UK Hardware Secure Module (HSM) Adapters Market by Industry
5.2.3.2.2 UK Hardware Secure Module (HSM) Adapters Market by Type
5.2.3.3 France Hardware Secure Module (HSM) Adapters Market
5.2.3.3.1 France Hardware Secure Module (HSM) Adapters Market by Industry
5.2.3.3.2 France Hardware Secure Module (HSM) Adapters Market by Type
5.2.3.4 Russia Hardware Secure Module (HSM) Adapters Market
5.2.3.4.1 Russia Hardware Secure Module (HSM) Adapters Market by Industry
5.2.3.4.2 Russia Hardware Secure Module (HSM) Adapters Market by Type
5.2.3.5 Spain Hardware Secure Module (HSM) Adapters Market
5.2.3.5.1 Spain Hardware Secure Module (HSM) Adapters Market by Industry
5.2.3.5.2 Spain Hardware Secure Module (HSM) Adapters Market by Type
5.2.3.6 Italy Hardware Secure Module (HSM) Adapters Market
5.2.3.6.1 Italy Hardware Secure Module (HSM) Adapters Market by Industry
5.2.3.6.2 Italy Hardware Secure Module (HSM) Adapters Market by Type
5.2.3.7 Rest of Europe Hardware Secure Module (HSM) Adapters Market
5.2.3.7.1 Rest of Europe Hardware Secure Module (HSM) Adapters Market by Industry
5.2.3.7.2 Rest of Europe Hardware Secure Module (HSM) Adapters Market by Type
5.3 Asia Pacific Hardware Secure Module (HSM) Adapters Market
5.3.1 Asia Pacific Hardware Secure Module (HSM) Adapters Market by Industry
5.3.1.1 Asia Pacific BFSI Market by Country
5.3.1.2 Asia Pacific Retail Market by Country
5.3.1.3 Asia Pacific Transportation Market by Country
5.3.1.4 Asia Pacific Aerospace & Defense Market by Country
5.3.1.5 Asia Pacific Others Market by Country
5.3.2 Asia Pacific Hardware Secure Module (HSM) Adapters Market by Type
5.3.2.1 Asia Pacific LAN Based / Network Attached Market by Country
5.3.2.2 Asia Pacific USB Based Market by Country
5.3.2.3 Asia Pacific PCI Based Market by Country
5.3.2.4 Asia Pacific Smart Cards Market by Country
5.3.3 Asia Pacific Hardware Secure Module (HSM) Adapters Market by Country
5.3.3.1 China Hardware Secure Module (HSM) Adapters Market
5.3.3.1.1 China Hardware Secure Module (HSM) Adapters Market by Industry
5.3.3.1.2 China Hardware Secure Module (HSM) Adapters Market by Type
5.3.3.2 Japan Hardware Secure Module (HSM) Adapters Market
5.3.3.2.1 Japan Hardware Secure Module (HSM) Adapters Market by Industry
5.3.3.2.2 Japan Hardware Secure Module (HSM) Adapters Market by Type
5.3.3.3 India Hardware Secure Module (HSM) Adapters Market
5.3.3.3.1 India Hardware Secure Module (HSM) Adapters Market by Industry
5.3.3.3.2 India Hardware Secure Module (HSM) Adapters Market by Type
5.3.3.4 South Korea Hardware Secure Module (HSM) Adapters Market
5.3.3.4.1 South Korea Hardware Secure Module (HSM) Adapters Market by Industry
5.3.3.4.2 South Korea Hardware Secure Module (HSM) Adapters Market by Type
5.3.3.5 Singapore Hardware Secure Module (HSM) Adapters Market
5.3.3.5.1 Singapore Hardware Secure Module (HSM) Adapters Market by Industry
5.3.3.5.2 Singapore Hardware Secure Module (HSM) Adapters Market by Type
5.3.3.6 Malaysia Hardware Secure Module (HSM) Adapters Market
5.3.3.6.1 Malaysia Hardware Secure Module (HSM) Adapters Market by Industry
5.3.3.6.2 Malaysia Hardware Secure Module (HSM) Adapters Market by Type
5.3.3.7 Rest of Asia Pacific Hardware Secure Module (HSM) Adapters Market
5.3.3.7.1 Rest of Asia Pacific Hardware Secure Module (HSM) Adapters Market by Industry
5.3.3.7.2 Rest of Asia Pacific Hardware Secure Module (HSM) Adapters Market by Type
5.4 LAMEA Hardware Secure Module (HSM) Adapters Market
5.4.1 LAMEA Hardware Secure Module (HSM) Adapters Market by Industry
5.4.1.1 LAMEA BFSI Market by Country
5.4.1.2 LAMEA Retail Market by Country
5.4.1.3 LAMEA Transportation Market by Country
5.4.1.4 LAMEA Aerospace & Defense Market by Country
5.4.1.5 LAMEA Others Market by Country
5.4.2 LAMEA Hardware Secure Module (HSM) Adapters Market by Type
5.4.2.1 LAMEA LAN Based / Network Attached Market by Country
5.4.2.2 LAMEA USB Based Market by Country
5.4.2.3 LAMEA PCI Based Market by Country
5.4.2.4 LAMEA Smart Cards Market by Country
5.4.3 LAMEA Hardware Secure Module (HSM) Adapters Market by Country
5.4.3.1 Brazil Hardware Secure Module (HSM) Adapters Market
5.4.3.1.1 Brazil Hardware Secure Module (HSM) Adapters Market by Industry
5.4.3.1.2 Brazil Hardware Secure Module (HSM) Adapters Market by Type
5.4.3.2 Argentina Hardware Secure Module (HSM) Adapters Market
5.4.3.2.1 Argentina Hardware Secure Module (HSM) Adapters Market by Industry
5.4.3.2.2 Argentina Hardware Secure Module (HSM) Adapters Market by Type
5.4.3.3 UAE Hardware Secure Module (HSM) Adapters Market
5.4.3.3.1 UAE Hardware Secure Module (HSM) Adapters Market by Industry
5.4.3.3.2 UAE Hardware Secure Module (HSM) Adapters Market by Type
5.4.3.4 Saudi Arabia Hardware Secure Module (HSM) Adapters Market
5.4.3.4.1 Saudi Arabia Hardware Secure Module (HSM) Adapters Market by Industry
5.4.3.4.2 Saudi Arabia Hardware Secure Module (HSM) Adapters Market by Type
5.4.3.5 South Africa Hardware Secure Module (HSM) Adapters Market
5.4.3.5.1 South Africa Hardware Secure Module (HSM) Adapters Market by Industry
5.4.3.5.2 South Africa Hardware Secure Module (HSM) Adapters Market by Type
5.4.3.6 Nigeria Hardware Secure Module (HSM) Adapters Market
5.4.3.6.1 Nigeria Hardware Secure Module (HSM) Adapters Market by Industry
5.4.3.6.2 Nigeria Hardware Secure Module (HSM) Adapters Market by Type
5.4.3.7 Rest of LAMEA Hardware Secure Module (HSM) Adapters Market
5.4.3.7.1 Rest of LAMEA Hardware Secure Module (HSM) Adapters Market by Industry
5.4.3.7.2 Rest of LAMEA Hardware Secure Module (HSM) Adapters Market by Type
Chapter 6. Company Profiles
6.1 IBM Corporation
6.1.1 Company Overview
6.1.2 Financial Analysis
6.1.3 Regional & Segmental Analysis
6.1.4 Research & Development Expenses
6.1.5 SWOT Analysis
6.2 Atos Group
6.2.1 Company Overview
6.2.2 Financial Analysis
6.2.3 Segmental Analysis
6.2.4 Recent strategies and developments:
6.2.4.1 Acquisition and Mergers:
6.2.5 SWOT Analysis
6.3 Hewlett Packard Enterprise Company (HP Development Company L.P.)
6.3.1 Company Overview
6.3.2 Financial Analysis
6.3.3 Segmental and Regional Analysis
6.3.4 Research & Development Expense
6.3.5 SWOT Analysis
6.4 Thales Group S.A.
6.4.1 Company Overview
6.4.2 Financial Analysis
6.4.3 Segmental and Regional Analysis
6.4.4 Research and Development Expense
6.4.5 Recent strategies and developments:
6.4.5.1 Partnerships, Collaborations, and Agreements:
6.5 Microchip Technology Incorporated
6.5.1 Company overview
6.5.2 Financial Analysis
6.5.3 Segmental and Regional Analysis
6.5.4 Research & Development Expenses
6.5.5 Recent strategies and developments:
6.5.5.1 Product Launches and Product Expansions:
6.6 Infineon Technologies AG
6.6.1 Company Overview
6.6.2 Financial Analysis
6.6.3 Segmental and Regional Analysis
6.6.4 Research & Development Expense
6.7 STMicroelectronics N.V.
6.7.1 Company Overview
6.7.2 Financial Analysis
6.7.3 Segmental and Regional Analysis
6.7.4 Research & Development Expense
6.8 Utimaco Management GmbH (SGT Capital)
6.8.1 Company Overview
6.8.2 Recent strategies and developments:
6.8.2.1 Partnerships, Collaborations, and Agreements:
6.8.2.2 Acquisition and Mergers:
6.9 Securosys SA
6.9.1 Company Overview
6.10. Futurex LP
6.10.1 Company Overview
Companies Mentioned
- Thales Group S.A.
- Microchip Technology, Inc.
- Infineon Technologies AG
- Atos Group
- Hewlett Packard Enterprise Company (HP Development Company L.P.)
- IBM Corporation
- Futurex LP
- STMicroelectronics N.V.
- Utimaco Management GmbH (SGT Capital)
- Securosys SA
Methodology
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