Hardware Security Modules Industry - Regional Scope
North America Market Forecast
The North America hardware security modules market is foreseen to hold 39.1% of the global revenue share through 2037. The boosting federal investment moves to enhance cybersecurity are expected to propel the sales of hardware security modules in the years ahead. Several digital programs, including Secure & Trusted Communications Networks Reimbursement, are fueling the adoption of hardware security modules among end users. The digital modernization movement is also set to open lucrative opportunities for hardware security module manufacturers during the foreseeable period.
The U.S. hardware security modules market size is projected to register a CAGR of 9.3% from 2025 to 2037. The government outlines, such as Fed RAMP and the National Cybersecurity Strategy, is accelerating the demand for advanced hardware security modules. The increasing adoption of digital technologies in the commercial and industrial sectors is augmenting the adoption of hardware security modules. The fintech, healthcare, and logistics sectors of the country are expected to lead the sales of hardware security modules during the foreseeable period.
The market for hardware security modules in Canada is expected to surpass USD 921.0 million by 2037. The increasing shift towards digital infrastructure, both in the public and private sectors, is set to fuel the sales of cybersecurity technologies such as hardware security modules. The rise in industrial automation is also backing the sales of hardware security modules in the country. In 2023, more than 1.9 million homes increased their broadband-backed secure access under Canadian Radio-television and Telecommunications Commission (CRTC) initiatives. The smart home trends are also propelling a high demand for hardware security modules.
APAC Market Statistics
The Asia Pacific hardware security modules market is set to increase at the fastest CAGR throughout the assessed period. The swift expansion of digital infrastructure in the BFSI, healthcare, and manufacturing industries is fueling the need for advanced cybersecurity solutions such as hardware security modules. The rise in digital infrastructure spending in Japan, China, India and South Korea are also creating a high-earning space for hardware security module manufacturers. According to the Ministry of Economy, Trade and Industry (METI), Japan invested around 3.0% of its technology budget in hardware security modules. Overall, Asia Pacific is a win-win market for hardware security module investors.
The large-scale end use companies in China are expected to propel the sales of hardware security modules. The Made in China initiative is likely to increase the domestic production of hardware security modules in the years ahead. The study by the China Academy of Information and Communications Technology (CAICT) highlights that in 2023, more than 6.0 million enterprises installed hardware security modules. The advancing healthcare sector of the country is also poised to increase the adoption of advanced cybersecurity solutions such as hardware security modules.
The BFSI sector of India is expected to lead the installation of hardware security modules in the coming years. The expanding fintech sector is projected to drive the revenue growth of the hardware security module manufacturers. For instance, the India Brand Equity Foundation (IBEF) estimates that the fintech sector is anticipated to cross USD 421.0 billion by 2029. Supportive government initiatives and positive foreign direct investments are foreseen to increase the importance of hardware security modules in the country during the study period. Furthermore, the ongoing advancements, such as e-KYC and Digital Bharat initiatives, are backing the sales of hardware security modules.
