At 12.0% CAGR, Middle East & Africa Hardware Security Module Market is Projected to be Worth US$ 317.08 Million by 2031, says Business Market Insights

According to Business Market Insights’ research, the Middle East & Africa hardware security module market was valued at US$ 127.74 million in 2023 and is anticipated to reach US$ 317.08 million by 2031, recording a CAGR of 12.0% from 2023 to 2031. Rising cases of data breach and growing adoption of cloud-based HSMs are among the critical factors attributed to drive the Middle East & Africa hardware security module market growth.

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. For instance, 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.

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.

On the contrary, high installation cost of hardware security module and other associated issues hamper the growth of Middle East & Africa hardware security module market.

Based on type, the Middle East & Africa hardware security module market is segmented into LAN based, PCLe based, and USB based. The LAN based segment held 38.5% market share in 2023, amassing US$ 49.17 million. It is projected to garner US$ 120.09 million by 2031 to register 11.8% CAGR during 2023–2031.

In terms of application, the Middle East & Africa 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 28.7% share of Middle East & Africa hardware security module market in 2023, amassing US$ 36.68 million. It is projected to garner US$ 94.13 million by 2031 to expand at 12.5% CAGR from 2023 to 2031.

By industry, the Middle East & Africa hardware security module market is categorized into BFSI, government, IT and telecom, healthcare, manufacturing, retail and consumer goods, and others. The BFSI segment held 30.7% share of Middle East & Africa hardware security module market in 2023, amassing US$ 39.20 million. It is predicted to garner US$ 98.88 million by 2031 to expand at 12.3% CAGR between 2023 and 2031.

Based on country, the Middle East & Africa hardware security module market is categorized into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. Our regional analysis states that the UAE captured 41.5% share of Middle East & Africa hardware security module market in 2023. It was assessed at US$ 53.05 million in 2023 and is likely to hit US$ 140.13 million by 2031, registering a CAGR of 12.9% during 2023–2031.

Key players operating in the Middle East & Africa hardware security module market are Thales SA, STMicroelectronics NV, Atos SE, International Business Machines Corp, 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 August 2022, Marvell Technology Inc launched the LiquidSecurity 2 module to empower best-in-class HSM-as-a-service for the multi-cloud era. LiquidSecurity 2 module is the industry’s most advanced solution for enabling encryption, key management, authentication and other HSM services in the cloud. LS2 is a converged security platform for payment, privacy compliance, and general-purpose applications. It is powered by a cloud-optimized Marvell OCTEON data processing unit (DPU), proven at scale across the world’s largest hyperscale clouds.

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