The new offering would be available for Software-as-a-Service (SaaS) applications and provide a key management center, reducing number and complexity of operations for security officers. In May 2022, Atos, a French multinational IT services firm developed a new hardware security module for Internet of Things (IoT) systems as well as a quantum simulator. This module allows communications service providers to store crypto keys and algorithms in a Hardware Security Module (HSM), enhancing security in markets and use cases with stricter security requirements. For instance, in December 2022, Ericsson, a Swedish multinational networking and telecommunications company introduces its Authentication Security Module solution, which is based on a physical dedicated module for central management of authentication procedures in 5G Core networks. Rising demand for hardware security modules due to growing number of cyberattacks across the globe prompted companies to introduce advanced technologies in the market. On, financial regulator of Germany Federal Financial Supervisory Authority (BaFin) issued new cyber security warning to the country's financial sector due to the war in Ukraine following a recent increase in cyber-attacks. On, Bank of Zambia announced that certain bank services had been disrupted due to a cyber-attack. On 28 March 2022, National Telecommunications Authority of Marshall Islands was brought down by a Distributed Denial of Service (DDoS) attack, which had shut down internet access on islands for over a week. According to the UK government survey in 2022, 39% of UK businesses have identified a cyber-attack in last 12 months. Increasing number of cyber-attacks and data breaches across the world especially in BFSI, telecommunication, and retail sectors creates high demand for hardware security module systems. Businesses can use devices to convert confidential information and processes from paper documentation to digital format.
HSMs can also generate and validate digital signatures and access transactions, which are logged to create an audit trail. The hardware security module manages, processes, and stores cryptographic keys within its hardened and tamper-resistant shell. This device provides cryptographic keys for vital tasks, such as authentication, encryption, and decryption, for databases and applications and protects cryptographic architecture of organizations. Hardware Security Module (HSM) is a device that adds another layer of protection to sensitive data. In addition, rising demand to protect cryptographic keys and manages encryption and decryption processes is expected to support revenue growth of the market. Increasing number of cyberattacks and data breaches across the world, stringent data security compliances, and increasing focus on data security in cloud are some of the key factors driving hardware security modules market revenue growth. The global Hardware Security Modules (HSMs) market size was USD 1.22 Billion in 2021 and is expected to register a revenue CAGR of 11.8% during the forecast period.