Report : Asia Pacific Hardware Security Module Market Forecast to 2031 - Regional Analysis - by Type (LAN Based, PCIe Based, and USB Based), Application (Payment Processing, Secure Socket Layer, Authentication, Code and Document Signing, Database Encryption, Credential Management, and Application-Level Encryption), and Industry (BFSI, Government, IT and Telecom, Healthcare, Manufacturing, Retail and Consumer Goods, and Others)
At 15.3% CAGR, Asia Pacific Hardware Security Module Market is Projected to be Worth US$ 914.88 Million by 2031, says Business Market Insights
According to Business Market Insights' research, the Asia Pacific hardware security module market was valued at US$ 292.15 million in 2023 and is anticipated to reach US$ 914.88 million by 2031, recording a CAGR of 15.3% from 2023 to 2031. Growing adoption of HSM for retail payment transactions and growing adoption of cloud-based HSMs are among the critical factors attributed to drive the Asia Pacific hardware security module market growth.
The popularity of online data-sharing applications, as well as digital technologies, is increasing due to the trend of remote working. This trend promotes digital transition, particularly for financial institutions such as banks, as e-banking usage and online sales have significantly increased. Digital transactions and payments have also risen as a result of mobile banking and third-party payment apps such as Google Pay or Amazon Pay that are connected to open banking platforms. Financial institutions are implementing hardware security modules for payments in an effort to streamline cryptography processes. They consistently manage numerous security apps and safeguard important payment information and transactions with a single hardware security module (HSM). For retail payment transactions, hardware security modules are implemented to protect the sensitive data of customers. As a result, market players are increasingly focusing on product development in the retail payment ecosystem. For instance, in September 2023, Thales announced the launch of the payShield Cloud HSM service to make it easy and flexible for payment HSMs to migrate to the cloud. Similarly, in June 2023, AWS announced a new service, AWS Payment Cryptography. This service simplifies cryptography operations, which help secure data in payment processing applications for credit, debit, and stored-value cards in accordance with the network, payment card industry (PCI), and American National Standards Institute (ANSI) standards and regulations. Financial service providers can replace their on-premises hardware security modules with shift payments-specific cryptography and major management functions to the cloud. Therefore, the growing adoption of HSM for retail payment transactions fuels the hardware security module market growth.
On the contrary, high installation cost of hardware security module and other associated issues hamper the growth of Asia Pacific hardware security module market.
Based on type, the Asia Pacific hardware security module market is segmented into LAN based, PCLe based, and USB based. The LAN based segment held 41.6% market share in 2023, amassing US$ 121.48 million. It is projected to garner US$ 374.50 million by 2031 to register 15.1% CAGR during 2023-2031.
In terms of application, the Asia Pacific 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 27.6% share of Asia Pacific hardware security module market in 2023, amassing US$ 80.65 million. It is projected to garner US$ 260.82 million by 2031 to expand at 15.8% CAGR from 2023 to 2031.
By industry, the Asia Pacific hardware security module market is categorized into BFSI, government, IT and telecom, healthcare, manufacturing, retail and consumer goods, and others. The BFSI segment held 29.4% share of Asia Pacific hardware security module market in 2023, amassing US$ 85.97 million. It is predicted to garner US$ 273.78 million by 2031 to expand at 15.6% CAGR between 2023 and 2031.
Based on country, the Asia Pacific hardware security module market is categorized into Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. Our regional analysis states that China captured 31.8% share of Asia Pacific hardware security module market in 2023. It was assessed at US$ 92.79 million in 2023 and is likely to hit US$ 327.32 million by 2031, registering a CAGR of 17.1% during 2023-2031.
Key players operating in the Asia Pacific hardware security module market are 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, among others.
- In October 2021, Infineon Technologies AG launched the SLS37 V2X hardware security module (HSM), a plug-and-play security solution for vehicle-to-everything communication (V2X). The SLS37 V2X HSM is based on a highly secured, tamper-resistant microcontroller tailored to the security needs of V2X applications within telematics control units. It protects the integrity and authenticity of messages, as well as the privacy of the sender. The HSM received the Common Criteria EAL4+ certification, which is expected to become mandatory in European V2X systems.
- In August 2023, The integration of IBM Power Virtual Server with IBM Key Protect enables enhanced data security through encryption to meet compliance requirements. IBM Key Protect for IBM Power Virtual Server supports businesses to achieve cost and operational efficiency by reducing their CapEx attached to on-premises infrastructure and the time needed to maintain that infrastructure. Similarly, IBM Key Protect for IBM Cloud provides data-at-rest encryption benefits for data stored in IBM Cloud using envelope encryption techniques that leverage FIPS 140-2 Level 3 certified cloud-based hardware security modules.
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