Report : North America 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 13.2% CAGR, North America Hardware Security Module Market is Projected to be Worth US$ 1,080.94 Million by 2031, says Business Market Insights

According to Business Market Insights' research, the North America hardware security module market was valued at US$ 399.71 million in 2023 and is anticipated to reach US$ 1,080.94 million by 2031, recording a CAGR of 13.2% from 2023 to 2031. Rising adoption of 5G network and growing adoption of cloud-based HSMs are among the critical factors attributed to drive the North America hardware security module market growth.

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. North America recorded the highest 5G penetration rate of 39% in 2022; it is expected to reach 91% 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.

On the contrary, high installation cost of hardware security module and other associated issues hamper the growth of North America hardware security module market.

Based on type, the North America hardware security module market is segmented into LAN based, PCLe based, and USB based. The LAN based segment held 40.6% market share in 2023, amassing US$ 162.40 million. It is projected to garner US$ 432.20 million by 2031 to register 13.0% CAGR during 2023-2031.

In terms of application, the North 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 26.4% share of North America hardware security module market in 2023, amassing US$ 105.65 million. It is projected to garner US$ 297.31 million by 2031 to expand at 13.8% CAGR from 2023 to 2031.

By industry, the North America hardware security module market is categorized into BFSI, government, IT and telecom, healthcare, manufacturing, retail and consumer goods, and others. The BFSI segment held 28.7% share of North America hardware security module market in 2023, amassing US$ 114.75 million. It is predicted to garner US$ 317.85 million by 2031 to expand at 13.6% CAGR between 2023 and 2031.

Based on country, the North America hardware security module market is categorized into the US, Canada, and Mexico. Our regional analysis states that the US captured 80.6% share of North America hardware security module market in 2023. It was assessed at US$ 322.29 million in 2023 and is likely to hit US$ 890.57 million by 2031, registering a CAGR of 13.5% during 2023-2031.

Key players operating in the North America hardware security module market are Thales SA, STMicroelectronics NV, Atos SE, International Business Machines Corp, Futurex LP, Swift SC, Infineon Technologies AG, Hewlett Packard Enterprise Development LP, Utimaco Management Services GmbH, and Marvell Technology Inc, among others.

  • In August 2023, International Business Machines Corp introduced the integration of IBM Power Virtual Server with IBM Key Protect for AIX and Linux. 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.

  • In February 2022, Futurex LP announced that its payment hardware security modules (HSMs) can process up to 50,000 transactions per second (TPS), the fastest in the world. HSMs, with FIPS 140-2 Level 3 validation, are widely recognized as the most secure way to manage encryption. Financial services organizations depend on robust, secure, and always-available cryptographic processing to handle essential tasks such as PIN verification, CVV validation, and mobile payment processing.


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