Middle East & Africa Hardware Security Module Market Forecast to 2031 - Regional Analysis - by Type, Application, and Industry

The Middle East & Africa hardware security module market was valued at US$ 127.74 million in 2023 and is projected to reach US$ 317.08 million by 2031; it is estimated to register a CAGR of 12.0% from 2023 to 2031.

Rising Adoption of 5G Network Bolsters Middle East & Africa Hardware Security Module Market

The 5G network is increasingly faster than the 4G network, making real-time data acquisition easier. According to the Groupe Speciale Mobile Association (GSMA), 5G penetration across the globe is expected to grow from 17% in 2022 to 54% by 2030. The 5G network offers strong connectivity and high-speed data transfer. As 5G network technology enables innovation and supports digital transformation, its demand is increasing worldwide. Hence, governments of several countries across the globe are investing in 5G infrastructure.. Thus, the rising adoption of 5G networks for critical infrastructure has surged the need for more secure solutions, which is expected to bring new hardware security module market trends in the coming years.

Middle East & Africa Hardware Security Module Market Overview

The Middle East & Africa hardware security module market is segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East and Africa. Modern hardware security modules found applications beyond traditional cryptography. These comprise securing more progressive applications such as blockchain, protected storage for complex data in cloud computing environments, and 5G cellular communications.

According to GSMA, countries such as Bahrain, Kuwait, Oman, Saudi Arabia, Qatar, and the UAE are the 5G pioneers, deploying several of the world's first 5G networks. Countries such as Algeria, Egypt, Jordan, Lebanon, Morocco, Tunisia, and Turkey have started to identify suitable 5G spectrum to launch services by 2023. Further, the operators in Algeria, Egypt, Morocco, and Turkey have been undertaking testing and trials of 5G.

As per the GSMA report on Mobile Economy Middle East & North Africa 2022, the adoption rate of 5G in the Middle East & Africa is projected to grow to 17% by 2025. The 5G connections in the MEA are projected to reach 41 million by 2025 (49% of total connections). Moreover, countries such as Israel, Iran, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE launched commercial 5G services at the end of March 2022. Libya, Tunisia, and Turkey operators have publicly announced plans to launch commercial 5G services in the coming years. Additionally, 5G coverage is ramping up.

Bahrain and Kuwait became two of the first countries to record nationwide 5G coverage, while the UAE reached 90% 5G population coverage at the end of 2021. In Saudi Arabia, 60 of the 136 governates were covered by 5G services as of mid-2021. Thus, the increasing adoption of the 5G network is expected to drive the hardware security module market during the forecast period.

Middle East & Africa Hardware Security Module Market Revenue and Forecast to 2031 (US$ Million)

Middle East & Africa Hardware Security Module Market Segmentation

The Middle East & Africa hardware security module market is categorized into type, application, industry, and country.

Based on type, the Middle East & Africa 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 Middle East & Africa 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 Middle East & Africa 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 Middle East & Africa hardware security module market is segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The UAE dominated the Middle East & Africa 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 Middle East & Africa hardware security module market.