Hardware Security Module Market Report By Insights, Size, and Growth - 2031

The hardware security module (HSM) market is projected to expand from US$ 1.36 billion in 2023 to US$ 3.85 billion by 2031, reflecting a compound annual growth rate (CAGR) of 13.9% during this period.

Healthcare organizations are experiencing a profound digital transformation, characterized by an increasing dependence on technology to provide patient care and essential services. This surge in digitalization within the healthcare sector facilitates access to medical information and services from virtually any location, ensuring that patient care is both timely and efficient. The shift towards digital solutions has led to the development of various tools and methodologies aimed at improving healthcare delivery. These innovations enable the maintenance of patient records and health-related data, making them readily available to both healthcare providers and patients. However, the escalating digitalization of healthcare systems has also rendered the sector vulnerable to a range of cyber threats and attacks. For example, Check Point Software Technologies Ltd's Check Point Research (CPR) reported that healthcare institutions faced an average of 1,426 weekly cyberattacks in 2022, marking a more than 60% increase from the previous year. Consequently, the heightened risk of cyberattacks associated with the growing digital landscape in healthcare is likely to drive the demand for advanced security solutions, such as hardware security modules. These modules are designed to safeguard healthcare organizations against threats including distributed denial of service (DDoS) attacks, ransomware, phishing schemes, and malware. Therefore, the ongoing digital transformation in the healthcare sector presents significant opportunities for the hardware security module market to flourish.

In China, there has been a notable rise in cyberattacks. A report released by StormWall s.r.o, a prominent cybersecurity firm, in April 2023, highlighted a 47% increase in DDoS attacks in the first quarter of 2023 compared to the same period in 2022. China accounted for 11.7% of these attacks, making it the most targeted nation. Furthermore, in August 2023, reports emerged that cybercriminals had sold a compromised dataset from the Chinese government, which allegedly contained personal identification information for approximately half a billion citizens, along with classified documents. Additionally, in July 2023, Chinese authorities accused US cybercriminals of breaching an earthquake monitoring station in Wuhan. According to the Public Security Bureau, this Trojan horse malware could illegally access and exfiltrate seismic data collected by the monitoring stations. Such incidents are anticipated to further stimulate the growth of the hardware security module market throughout the forecast period.

Key players in the hardware security module market include Thales, STMicroelectronics, Utimaco Management GmbH, Atos SE, IBM Corporation, Futurex, SWIFT, Ultra Electronics Holdings plc, Infineon Technologies AG, and Hewlett Packard Enterprise Development LP. The market report also examines several other significant players to provide a comprehensive overview of the market landscape and its ecosystem. Insights from the hardware security module market report are designed to assist major stakeholders in formulating effective growth strategies.

The overall size of the hardware security module market has been determined through a combination of primary and secondary research methodologies. The research process commenced with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. Additionally, numerous primary interviews were conducted with industry participants and experts to validate the findings and obtain deeper analytical insights. Participants in this research included industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the hardware security module sector.