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Hardware security module (HSM) is a piece of hardware and associated software/firmware attached to or placed inside a particular hardware to serve cryptographic functions. Its functions largely include key management/generation, encryption, decryption, and hashing. HSM systems have the ability to securely back up the keys that they can be handled using some external security token such as smart card or via operating systems of the computer. The market for hardware security module is forecasted to grow to US$ 6,592.5 Mn by 2027, recording a CAGR of 11.4%.

The major factor leading to the growth of the hardware security module (HSM) market is growing data security concerns in all the data sensitive companies around the world. Hardware security modules are responsible for efficiently storing and managing cryptographic keys. The HSM performs a number of important security related functions including encryption and message authentication. There are various attributes of an efficient HSM device including FIPS 140-1 or 140-2 validation, secure cryptographic algorithm, standardized interface for developers, key backup, and key protection among others. End-users of HSM largely evaluate the HSM device vendors on these features.

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The comprehensive protection of data can lead to increasing demand for hardware security modules in the near future. Organizations in the Germany, U.S., and Japan are more likely to deploy HSMs for encryption/decryption and key management. HSM has become an important part of an organization’s encryption and key management program. Most organizations are also moving toward cloud based HSM since over a period this deployment model has become more feasible and cost effective largely among medium and small enterprises.

High cost of implementation and upgrade of hardware security modules is expected to be one of the major restraints pulling back the market growth, specifically that of the traditional hardware security module.

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The global hardware security module market can be segmented based on application, type, and industry vertical. The type segment has further been segmented into remote interface, local interface, smart cards, and USB tokens. Remote interface HSM type held the major market share in 2019 in the overall hardware security module market. However, smart cards and USB tokens are expected to display comparatively fast growth during the forecast period. On the basis of application, the market has been divided as authentication, payment processing database encryption, document signing, code signing, PKI/credential management, Secure Socket Layer (SSL), and application level encryption.

From a geographical point of view, North America is expected to hold major share in the hardware security module market. Growth in this region is attributed to strong adoption and penetration of security modules as well as presence of large number of vendors across the region. However, Europe is also estimated to contribute significant share in the overall HSM market, closely followed by Asia Pacific. This growth is supported by APAC countries including Japan, China, and India. The global HSM revenue stood at US$ 2,775.4 Mn in 2019 and is anticipated to expand at a CAGR of 11.4% during the forecast period from 2019 to 2027. South America and Middle East & Africa are anticipated to grow at a relatively stable rate during the forecast period.

Based on industry vertical, the market is segmented into healthcare and life sciences, banking and financial institutions, government, technology and communication, energy and utility, industrial and manufacturing, retail and consumer, and others (automotive, hospitality and transportation). Among the industry verticals, the automotive and transportation segments are expected to expand at the fastest rate owing to the increasing deployment of HSM in automobile and transportation industry verticals. However, BFSI accounted for the largest share in 2019, followed by healthcare & life sciences.

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Attracted by a significantly expanding market, underlying technological advancements, and growing popularity of cloud-based HSM solutions, many players are driven to develop a comprehensive suite of modules for a number of industries. There is a rush of companies across industries to strengthen their foothold in the hardware security module market. In 2019, Atos SE entered into a strategic partnership with Orange Cyberdefense to focus on the market for secure mobile terminal communication. Key vendors in the market are continuously involved in improvement and development of more feasible HSM solutions. Some of the players profiled in the global hardware security module (HSM) market include

  • Hewlett Packard Enterprise Development L.P.
  • Utimaco GmbH
  • Futurex
  • Thales e-Security, Inc.
  • IBM Corporation
  • Ultra Electronics Group
  • Gemalto NV
  • SWIFT,
  • ubico.

Hardware Security Module (HSM) Market: Overview

The hardware security module (HSM) report provides analysis for the period 2017 – 2027, wherein 2020 to 2027 are the forecast years and 2019 is the base year. The report covers all the major trends and technologies playing an influential role in the market’s growth over the forecast period. It also highlights the drivers, restraints, and opportunities for the analysis of market growth during the said period. The study provides a complete perspective on the global hardware security module market’s evolution throughout the above mentioned forecast period in terms of revenue (US$ Mn).

The market overview section of the report demonstrates market dynamics such as the drivers, restraints, and opportunities that influence the current nature and future status of this market, key indicators, integration challenges, end-user adoption analysis, and trends of the market. Further, key market indicators included in the report provide significance of the factors which are capable of changing the market scenario. These indicators are expected to define the market position during the forecast period and provide an overview about the global hardware security module market. A market attractiveness analysis has also been provided for every segment in the report, in order to provide a thorough understanding of the overall scenario in the hardware security module market. The report also provides an overview of various strategies adopted by the key players present in the market.

Key Questions Answered in TMR’s Report on the Hardware Security Module (HSM) Market

The report provides detailed information about the Hardware Security Module (HSM) Market on the basis of comprehensive research on various factors that play a key role in accelerating the growth potential of the market. Information mentioned in the report answers path-breaking questions for companies that are currently functioning in the market and are looking for innovative ways to create a unique benchmark in the Hardware Security Module (HSM) Market, so as to help them make successful strategies and take target-driven decisions.

  • Which regions will continue to remain the most profitable regional markets for Hardware Security Module (HSM) Market players?
  • Which factors will induce a change in the demand for Hardware Security Module during the assessment period?
  • How will changing trends impact the Hardware Security Module (HSM) Market?
  • How can market players capture low-hanging opportunities in the Hardware Security Module (HSM) Market in developed regions?
  • Which companies are leading the Hardware Security Module (HSM) Market?
  • What are the winning strategies of stakeholders in the Hardware Security Module (HSM) Market to upscale their position in this landscape?
  • What will be the Y-o-Y growth of the Hardware Security Module (HSM) Market between 2019 and 2027?
  • What are the winning imperatives of market frontrunners in the Hardware Security Module (HSM) Market?
  • What are the major advancements witnessed in the Hardware Security Module (HSM) Market?

Global Hardware Security Module (HSM) Market: Scope of the Report

The report segments the market on the basis of type, application, and industry verticals. The type segment includes local interface, remote interface, smart cards, and USB tokens hardware security modules Based on application, the market is segmented into authentication, database encryption, document signing, secure socket layer (SSL), code signing, PKI/credential management, payment processing, and application level encryption. In terms of industry verticals, the hardware security module market is segmented into banking and financial institutions, government, technology and communication, industrial and manufacturing, energy and utility, retail and consumer, healthcare and life sciences and others The report provides in-depth segment analysis of the global hardware security module market, thereby providing valuable insights at the macro as well as micro levels.

The report also highlights the competitive landscape of the global hardware security module market, positioning all the major players according to their presence in different regions of the world and recent key developments initiated by them in the hardware security module market. The comprehensive hardware security module market estimates are the result of our in-depth secondary research, primary interviews, and in-house expert panel reviews. These market estimates have been analyzed by taking into account the impact of different political, social, economic, and technological factors along with the current market dynamics affecting hardware security module market growth.

This report provides all the essential information required to understand the key developments in the hardware security module market, and growth trends of each segment and region. It also includes strategies, financial information, SWOT analysis, and developments under the company profile section. Also, the report provides insights related to trends and their impact on the market. Furthermore, Porter’s Five Forces analysis explains the five forces namely bargaining power of buyers, bargaining power of suppliers, threat of new entrants, threat of substitutes, and degree of competition in the hardware security module market. This report also provides a comprehensive value chain analysis of the hardware security module market. It explains the various participants including raw material suppliers, manufacturers, and distribution channel of the value chain operating in the market.

Global Hardware Security Module (HSM) Market: Research Methodology

The research methodology is a perfect combination of primary research, secondary research, and expert panel reviews. Secondary research sources such as annual reports, company websites, broker reports, financial reports, SEC filings and investor presentations, national government documents, internal and external proprietary databases, statistical databases, relevant patent and regulatory databases, market reports, government publications, statistical databases, World Bank database, and industry white papers are usually referred.

Primary research involves telephonic interviews, e-mail interactions, and face-to-face interviews for detailed and unbiased reviews on the hardware security module market, across geographies. Primary interviews are usually conducted on an ongoing basis with industry experts and participants in order to get latest market insights and validate the existing data and analysis. Primary interviews offer firsthand information on important factors such as market trends, market size, competitive landscape, growth trends, and outlook, etc. These factors help to validate and strengthen secondary research findings and also help to develop the analysis team’s expertise and market understanding. Moreover, the data collected and analyzed from secondary and primary research is again discussed and examined by our expert panel.

Global Hardware Security Module (HSM) Market: Competitive Dynamics

The research study includes profiles of leading companies operating in the global hardware security modules market. Some of the key players profiled in the hardware security modules market include Utimaco GmbH, Futurex, Thales e-Security, Inc., Gemalto NV, IBM Corporation, Hewlett Packard Enterprise Development L.P., Ultra Electronics Group, SWIFT, and Yubico.

Global Hardware Security Module (HSM) Market Segmentation:


  • Local Interface
  • Remote Interface
  • USB token
  • Smart Cards


  • Authentication
  • Database Encryption
  • Document Signing
  • Secure Sockets Layer (SSL)
  • Code Signing
  • PKI/Credential Management
  • Payments Processing
  • Application Level Encryption

Industry Verticals

  • BFSI
  • Government
  • Technology and Communication
  • Industrial and Manufacturing
  • Energy and Utility
  • Retail and Consumer Products
  • Healthcare & Life sciences
  • Others (Transportation, Automotive, and Hospitality)


  • North America
    • The U.S.
    • Canada
    • Rest of North America
  • Europe
    • The U.K
    • Germany
    • France
    • Rest of Europe
  • Asia Pacific (APAC)
    • India
    • China
    • Rest of APAC
  • Middle East & Africa (MEA)
    • GCC
    • South Africa
    • Rest of MEA
  • South America
    • Brazil
    • Argentina
    • Rest of South America

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