The embedded security market size is valued at USD 6.8 Billion in 2022 and is anticipated to be USD 9.0 Billion by 2027; growing at a CAGR of 5.9% from 2022 to 2027. The growing demand for Internet of Things (IoT) applications and the inclusion of payments functionality in wearables devices are driving the growth of the market during the forecast period.
The embedded security market based on security type has been segmented into authentication and access management, payment, and content protection. Authentication and access management verifies user identity which ensures only legitimate users can access the data. The payment security type protects user-sensitive data which allows the transaction to be secured between the merchant and the customers through various digital payments modes. Content protection security type secures sensitive data of the organization by preventing unauthorized access, providing advanced endpoint data and device protection from malicious attacks, fraudulent activities, cyber-attacks, network threats, and privacy breaches. Ongoing technological advancements and increasing consumer demand for advanced safety features are expected to drive the growth of the payment market.
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The embedded security market has been segmented on the basis of offering into hardware, software, and services. The hardware segment includes the secure element, embedded sim, trusted platform module, hardware security module, and hardware tokens. Growth in the number of machine-to-machine communication is driving the growth for secure element and embedded sim. Increasing cyber threats are driving the trusted platform module market. Demand for information and data security is driving the market of hardware security module whereas an increasing number of internet-based transactions is driving the hardware token market. Security software protects any device or network from malicious attacks. There are various security software such as antivirus, firewall, antispyware, and network security. The increasing number of cyberattacks is driving the software security market. Services monitor the performance of any software. The various services include system integrated service, support, and maintenance service, and security consulting.
The embedded security market has been segmented on the basis of application. Based on application, the embedded security market has been segmented into wearables, smartphones, automotive, smart identity cards, industrial, payment processing and card, and others. The inclusion of payment functionality in wearables is expected to drive the market in the forecasted years.
APAC is projected to account for the largest size of the embedded security market from 2022 to 2027. The growth of the market in this region can be attributed to the factors such as growth in the mobile workforce, unregulated nature of the Internet, increasing complexity of businesses, and consolidating trend of BYOD requires strong security solutions, which, in turn, are expected to encourage such SMBs to adopt various security solutions.