North America Hardware Security Module Market Forecast to 2031 - Regional Analysis

Description

List of Tables

The North America hardware security module market was valued at US$ 399.71 million in 2023 and is projected to reach US$ 1,080.94 million by 2031; it is estimated to register a CAGR of 13.2% from 2023 to 2031.

Rising Cases of Data Breach Fuels North America Hardware Security Module Market

Many large-sized businesses and corporations work with a huge volume of sensitive and confidential data. The rise in digitalization has encouraged several businesses across various industry verticals to digitalize their business to gain competitive advantage, enhance operational workflow, and reach more targeted audiences. However, the adoption of digital solutions makes critical data vulnerable and accessible to hackers, leading to the loss of critical information, financial losses, and loss of customer trust, among others. The rise in the number of data breach cases affects the overall business performance. A few of the data breach incidents are mentioned below:

In July 2023, IBM Security released the Cost of a Data Breach report for 2023. The report indicated that the global average data breach cost reached US$ 4.45 million in 2023, a 15% increase over the previous three years. In July 2023, MOVEit, the file transfer tool, experienced a massive data hack, which impacted 200 organizations and 17.5 million individuals. The data of multiple critical organizations and government bodies, such as the Department of Agriculture, Department of Energy, and Department of Health and Human Services, were leaked. In May 2023, Deutsche Telekom AG's brand T-Mobile experienced its second data breach case for 2023, where over 800 customer's PINs, full names, and phone numbers were leaked. To protect data and boost their network security, businesses are using hardware security module (HSM) solutions. Thus, the rise in the number of data breach cases generates the demand for enhanced security solutions, such as hardware security modules, which drives the hardware security module market.

North America Hardware Security Module Market Overview

The hardware security module market in North America accounted for the second-largest share in 2023. The US accounted for the largest share in 2021, followed by Canada and Mexico. Increasing government initiatives to reduce the risk of cyberattacks is the major factor driving the market growth. For instance, in July 2023, as per the International Association of Privacy Professionals, the US Securities and Exchange Commission (SEC) implemented a rule demanding publicly traded companies to reveal any cybersecurity event within four days of identifying that it is "material" and then to file periodic updates as further information becomes available. "Material" is a key term in the SEC's regulatory framework, which is based on the proposition that investors are entitled to all material information about a company's financial condition. The requirement applies not only to breaches of customer data but to any cyber event that could impact a company's operations. Thus, the demand for hardware security modules in the US is expected to grow during the forecast period.

Canada is expected to register the second-highest CAGR during the forecast period. An intricate set of provincial and federal statutes encompasses data protection law in Canada. These laws comprise federal and provincial data protection statutes of general application, as well as sector-specific statutes, such as health privacy laws and related laws-including consumer protection and anti-spam laws. Further, key market players are focusing on product development. For instance, in May 2023, a Canadian company, Crypto4A Technologies Inc., announced the launch of an industry-first fifth-generation hardware security module QxHSM in a revolutionary modular blade form factor that offers operational efficiencies and a reduced total cost of ownership. QxHS delivers the quantum-safe cryptographic agility, scalability, and mobility required to keep up with rapid technological development, ensures true ownership of cryptographic material without vendor lock-in, and supports flexible cloud-scale deployment architectures while adapting to changing markets, requirements, and standards.

North America Hardware Security Module Market Revenue and Forecast to 2031 (US$ Million)

North America Hardware Security Module Market Segmentation

The North America hardware security module market is categorized into type, application, industry, and country.

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 the largest market share in 2023.

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 the largest market share in 2023.

By industry, the North America 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 North America hardware security module market is segmented into the US, Canada, and Mexico. The US dominated the North America hardware security module market share in 2023.

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 are some of the leading companies operating in the North America hardware security module market.

Product Code: BMIRE00030845

1. Introduction

1.1 The Insight Partners Research Report Guidance
1.2 Market Segmentation

2. Executive Summary

2.1 Key Insights
2.2 Market Attractiveness

3. Research Methodology

3.1 Secondary Research
3.2 Primary Research
- 3.2.1 Hypothesis formulation:
- 3.2.2 Macro-economic factor analysis:
- 3.2.3 Developing base number:
- 3.2.4 Data Triangulation:
- 3.2.5 Country level data:

4. North America Hardware Security Module Market Landscape

4.1 Overview
4.2 Ecosystem Analysis
- 4.2.1 List of Vendors in the Value Chain

5. North America Hardware Security Module Market - Key Market Dynamics

5.1 Market Drivers
- 5.1.1 Rising Cases of Data Breach
- 5.1.2 Growing Adoption of HSM for Retail Payment Transactions
5.2 Market Restraints
- 5.2.1 High Installation Cost of Hardware Security Module and Other Associated Issues
5.3 Market Opportunities
- 5.3.1 Growing Adoption of Cloud-based HSMs
5.4 Future Trends
- 5.4.1 Rising Adoption of 5G Network
5.5 Impact of Drivers and Restraints:

6. Hardware Security Module Market - North America Analysis

6.1 Hardware Security Module Market Revenue (US$ Million), 2021-2031
6.2 Hardware Security Module Market Forecast Analysis

7. North America Hardware Security Module Market Analysis - by Type

7.1 LAN based
- 7.1.1 Overview
- 7.1.2 LAN based: Hardware Security Module Market - Revenue and Forecast to 2031 (US$ Million)
7.2 PCIe based
- 7.2.1 Overview
- 7.2.2 PCIe based: Hardware Security Module Market - Revenue and Forecast to 2031 (US$ Million)
7.3 USB Based
- 7.3.1 Overview
- 7.3.2 USB Based: Hardware Security Module Market - Revenue and Forecast to 2031 (US$ Million)

8. North America Hardware Security Module Market Analysis - by Application

8.1 Payment Processing
- 8.1.1 Overview
- 8.1.2 Payment Processing: Hardware Security Module Market - Revenue and Forecast to 2031 (US$ Million)
8.2 Secure Socket Layer
- 8.2.1 Overview
- 8.2.2 Secure Socket Layer: Hardware Security Module Market - Revenue and Forecast to 2031 (US$ Million)
8.3 Authentication
- 8.3.1 Overview
- 8.3.2 Authentication: Hardware Security Module Market - Revenue and Forecast to 2031 (US$ Million)
8.4 Code and Document Signing
- 8.4.1 Overview
- 8.4.2 Code and Document Signing: Hardware Security Module Market - Revenue and Forecast to 2031 (US$ Million)
8.5 Database Encryption
- 8.5.1 Overview
- 8.5.2 Database Encryption: Hardware Security Module Market - Revenue and Forecast to 2031 (US$ Million)
8.6 Credential Management
- 8.6.1 Overview
- 8.6.2 Credential Management: Hardware Security Module Market - Revenue and Forecast to 2031 (US$ Million)
8.7 Application-Level Encryption
- 8.7.1 Overview
- 8.7.2 Application-Level Encryption: Hardware Security Module Market - Revenue and Forecast to 2031 (US$ Million)

9. North America Hardware Security Module Market Analysis - by Industry

9.1 BFSI
- 9.1.1 Overview
- 9.1.2 BFSI: Hardware Security Module Market - Revenue and Forecast to 2031 (US$ Million)
9.2 Government
- 9.2.1 Overview
- 9.2.2 Government: Hardware Security Module Market - Revenue and Forecast to 2031 (US$ Million)
9.3 IT and Telecom
- 9.3.1 Overview
- 9.3.2 IT and Telecom: Hardware Security Module Market - Revenue and Forecast to 2031 (US$ Million)
9.4 Healthcare
- 9.4.1 Overview
- 9.4.2 Healthcare: Hardware Security Module Market - Revenue and Forecast to 2031 (US$ Million)
9.5 Manufacturing
- 9.5.1 Overview
- 9.5.2 Manufacturing: Hardware Security Module Market - Revenue and Forecast to 2031 (US$ Million)
9.6 Retail and Consumer Goods
- 9.6.1 Overview
- 9.6.2 Retail and Consumer Goods: Hardware Security Module Market - Revenue and Forecast to 2031 (US$ Million)
9.7 Others
- 9.7.1 Overview
- 9.7.2 Others: Hardware Security Module Market - Revenue and Forecast to 2031 (US$ Million)

10. North America Hardware Security Module Market - Country Analysis

10.1 North America
- 10.1.1 North America: Hardware Security Module Market - Revenue and Forecast Analysis - by Country
  - 10.1.1.1 North America: Hardware Security Module Market - Revenue and Forecast Analysis - by Country
  - 10.1.1.2 United States: Hardware Security Module Market - Revenue and Forecast to 2031 (US$ Million)
    - 10.1.1.2.1 United States: Hardware Security Module Market Breakdown, by Type
    - 10.1.1.2.2 United States: Hardware Security Module Market Breakdown, by Application
    - 10.1.1.2.3 United States: Hardware Security Module Market Breakdown, by Industry
  - 10.1.1.3 Canada: Hardware Security Module Market - Revenue and Forecast to 2031 (US$ Million)
    - 10.1.1.3.1 Canada: Hardware Security Module Market Breakdown, by Type
    - 10.1.1.3.2 Canada: Hardware Security Module Market Breakdown, by Application
    - 10.1.1.3.3 Canada: Hardware Security Module Market Breakdown, by Industry
  - 10.1.1.4 Mexico: Hardware Security Module Market - Revenue and Forecast to 2031 (US$ Million)
    - 10.1.1.4.1 Mexico: Hardware Security Module Market Breakdown, by Type
    - 10.1.1.4.2 Mexico: Hardware Security Module Market Breakdown, by Application
    - 10.1.1.4.3 Mexico: Hardware Security Module Market Breakdown, by Industry

11. Competitive Landscape

11.1 Heat Map Analysis by Key Players
11.2 Company Positioning & Concentration

12. Industry Landscape

12.1 Overview
12.2 Market Initiative
12.3 Product Development

13. Company Profiles

13.1 Thales SA
- 13.1.1 Key Facts
- 13.1.2 Business Description
- 13.1.3 Products and Services
- 13.1.4 Financial Overview
- 13.1.5 SWOT Analysis
- 13.1.6 Key Developments
13.2 STMicroelectronics NV
- 13.2.1 Key Facts
- 13.2.2 Business Description
- 13.2.3 Products and Services
- 13.2.4 Financial Overview
- 13.2.5 SWOT Analysis
- 13.2.6 Key Developments
13.3 Atos SE
- 13.3.1 Key Facts
- 13.3.2 Business Description
- 13.3.3 Products and Services
- 13.3.4 Financial Overview
- 13.3.5 SWOT Analysis
- 13.3.6 Key Developments
13.4 International Business Machines Corp
- 13.4.1 Key Facts
- 13.4.2 Business Description
- 13.4.3 Products and Services
- 13.4.4 Financial Overview
- 13.4.5 SWOT Analysis
- 13.4.6 Key Developments
13.5 Futurex LP
- 13.5.1 Key Facts
- 13.5.2 Business Description
- 13.5.3 Products and Services
- 13.5.4 Financial Overview
- 13.5.5 SWOT Analysis
- 13.5.6 Key Developments
13.6 Swift SC
- 13.6.1 Key Facts
- 13.6.2 Business Description
- 13.6.3 Products and Services
- 13.6.4 Financial Overview
- 13.6.5 SWOT Analysis
- 13.6.6 Key Developments
13.7 Infineon Technologies AG
- 13.7.1 Key Facts
- 13.7.2 Business Description
- 13.7.3 Products and Services
- 13.7.4 Financial Overview
- 13.7.5 SWOT Analysis
- 13.7.6 Key Developments
13.8 Hewlett Packard Enterprise Development LP
- 13.8.1 Key Facts
- 13.8.2 Business Description
- 13.8.3 Products and Services
- 13.8.4 Financial Overview
- 13.8.5 SWOT Analysis
- 13.8.6 Key Developments
13.9 Utimaco Management Services GmbH
- 13.9.1 Key Facts
- 13.9.2 Business Description
- 13.9.3 Products and Services
- 13.9.4 Financial Overview
- 13.9.5 SWOT Analysis
- 13.9.6 Key Developments
13.10 Marvell Technology Inc
- 13.10.1 Key Facts
- 13.10.2 Business Description
- 13.10.3 Products and Services
- 13.10.4 Financial Overview
- 13.10.5 SWOT Analysis
- 13.10.6 Key Developments

14. Appendix

14.1 About The Insight Partners