South & Central America Hardware Security Module Market Forecast to 2031 - Regional Analysis - by Type, Application, and Industry

The South & Central America hardware security module market was valued at US$ 71.71 million in 2023 and is projected to reach US$ 165.38 million by 2031; it is estimated to register a CAGR of 11.0% from 2023 to 2031.

Growing Adoption of Cloud-based HSMs Fuels South & Central America Hardware Security Module Market

HSMs using cloud-based technologies offer physical data access protection, generation of keys, secure management of key material, and a secure execution environment for cloud applications. A few of the major market players are focusing on developing advanced hardware security modules for cloud-based applications. For instance, in September 2022, Marvell unveiled its LiquidSecurity 2 (LS2) hardware security module adapter, an advanced solution that offers encryption, key management, authentication, and other hardware security module services in the cloud. Furthermore, LS2 is a converged security platform for payment, privacy compliance, and general-purpose applications.

It is powered by Marvell OCTEON, a cloud-optimized data processing unit (DPU), which is proven at scale across the world as the largest hyperscale cloud. The new adapter offers the highest-performing cryptographic acceleration and processing, as well as hardware-secured storage of up to one million keys for AES, RSA, and ECC encryption algorithms and 45 partitions for robust multi-tenant use cases.

Also, in August 2023, Thales announced the launch of its new payShield Cloud HSM service, aimed to boost the adoption of cloud payments infrastructure. The solution, built on its payShield 10k Payment Hardware Security Module (HSM), focuses on providing clients with improved flexibility, scalability, and speed-to-market solutions. Thus, the growing adoption of cloud-based HSMs is expected to create lucrative opportunities for the hardware security module market growth during the forecast period.

South & Central America Hardware Security Module Market Overview

The South & Central America hardware security module market is segmented into Brazil, Argentina, and the Rest of South America. Economies in South & Central America have developed at a faster growth rate on average than the economies of developed countries in the last few years. However, they still lag in terms of technological development when compared to other regions. The deployment of 5G networks signifies an important opportunity for development in South America.

With the rollout of 5G networks, hybrid asymmetric/symmetric algorithms are designed to authenticate user identity and to defend against unauthorized access. Running algorithms within the tamper-resistant environment of a hardware security module has become critical for the security of these rollouts. Typically offered as certified devices, hardware security modules have also evolved to meet the varying requirements for compliance with regulatory necessities.

In 2021, Chile became the first South American country to include the 5G network throughout its national territory. Brazil is expected to have the largest 5G network coverage in South and Central America by 2025. In countries such as Colombia, Peru, Brazil, and Puerto Rico, there have been commercial 5G launches. As per the Telefonaktiebolaget LM Ericsson, the digitalization of industries in South America is expected to be valued at over US$ 21 billion annually. According to 5G Americas, currently, nearly 18 5G networks are operating in South America. By the end of 2026, 5G is expected to represent ~43% of mobile subscriptions in Latin America.

Investments in 5G networks are continuously growing. For instance, GSMA estimated that 5G investments will peak by 2025. Mobile operators invested US$ 11.3 billion in 2020, which is expected to rise to US$ 13 billion in 2025. Overall investments between 2020 and 2025 are expected to reach US$ 73 billion. Thus, all these factors are likely to propel the hardware security module market in South & Central America.

South & Central America Hardware Security Module Market Revenue and Forecast to 2031 (US$ Million)

South & Central America Hardware Security Module Market Segmentation

The South & Central America hardware security module market is categorized into type, application, industry, and country.

Based on type, the South & Central America hardware security module market is segmented into LAN based, PCLe based, and USB based. The LAN based segment held the largest market share in 2023.

In terms of application, the South & Central America hardware security module market is categorized into payment processing, secure socket layer, authentication, code and document signing, database encryption, credential management, and application-level encryption. The payment processing segment held the largest market share in 2023.

By industry, the South & Central America hardware security module market is segmented into BFSI, government, IT and telecom, healthcare, manufacturing, retail and consumer goods, and others. The BFSI segment held the largest market share in 2023.

By country, the South & Central America hardware security module market is segmented into Brazil, Argentina, and the Rest of South & Central America. Brazil dominated the South & Central America hardware security module market share in 2023.

Thales SA, STMicroelectronics NV, Atos SE, International Business Machines Corp, Swift SC, Infineon Technologies AG, Hewlett Packard Enterprise Development LP, Utimaco Management Services GmbH, and Marvell Technology Inc are some of the leading companies operating in the South & Central America hardware security module market.