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Global Embedded Security Market Size, Share, Trends, COVID-19 Impact & Growth Forecast Report - Segmented By Offering (Element And Embedded SIM, Trusted Platform Module, Hardware Security Module), Security Type (Authentication And Access Management, Payment, Content Protection), Application (Programming, Home And Industrial Automation),End-Users (Manufacturing, Automotive, Consumer Electronics And Others), And Region (North America, Europe, APAC, Latin America, Middle East And Africa) – Industry Analysis From 2023 To 2028

Published: March, 2023
ID: 9533
Pages: 175
Formats: report pdf report excel report power bi report ppt

Global Embedded Security Market Size (2023 to 2028)

The global embedded security market size is expected to be worth USD 5 Billion in 2023. It is expected to grow at a CAGR of 9.30% during the forecast period and reach a value of USD 7.80 Billion by 2028.

Global Embedded Security Market Drivers:

The high using of embedded security in laptops, smartphones, and tablets combined with increasing security threats is driving the growth of the global embedded security market. Digitalization is a major proposition in the embedded security market. Recently rising trends of wearables among individuals are another factor responsible for the market growth. The governments of several countries have already taken the initiative in digitalization, and online platforms such as e-governance improve productivity and efficiency of financial transitions. The new developments and innovations are in the embedded security market, enhancing the value of smartphones, laptops, and tablets. Rising threats are promoting the growth of the embedded security market. Digitalization is the primary driver for this market, including e-commerce, e-governance, and payment transitions. Customer demand for new security products is high. The growing Internet of Things, IoT security, IoT applications, the inclusion of embedded security in wearables, and government agencies' online transitions are the critical drivers for the embedded security market. The primary role of this security in robotics is reliability and performance, while it is used in various applications in the automobile sector, body electronics, traffic control, mobile, and e-com access. It protects consumers and system manufacturers. These include medical, retail, and critical infrastructure. Recently, side channel attack devices also boosted the nod for Embedded Security products.

The growing employment of artificial intelligence (AI) in multiple applications is propelling the growth of the global embedded security market. The demand for improved data protection, privacy, and threat mitigation is boosting this emerging trend, which is changing the cyber security environment. With the use of sophisticated algorithms and deep learning approaches, AI has been shown to be an unrivaled tool for producing realistic data, images, and even literature. Financial, medical, automotive, and Internet of Things (IoT) industries have all embraced generative AI-powered solutions to strengthen their security frameworks against new and emerging cyber threats.

5G technology has led to the development of 5G-capable embedded devices. According to the GSM Association, the world economy will receive about 2.2 trillion dollars from the 5G industry by 2034, which represents 5 percent of the rise in global GDP. Therefore, it is anticipated that the manufacturing of these systems based on 5G architecture will increase. Faster response times are provided by utilizing them in vehicle smart camera surveillance systems since 5G is integrated into their design. Furthermore, 5G technology allows faster picture processing and will assist in addressing the difficulties encountered during industrial automation and smart farming. Consequently, it is expected that embedded devices supporting 5G infrastructure will accelerate the market expansion.

OEMs of embedded devices will be compelled to implement strict new procedures by government legislation and the possibility of losing market share will be guaranteeing end-to-end security throughout the lifetime of all goods. Manufacturers must also implement fleet management and update systems that can handle novel and unidentified risks such as the quantum computers pose to existing encryption algorithms. The increasing variety of embedded systems is presenting numerous prospects for the mechanical, electrical and electronics industries. Also, there is a shift towards hardware from software in IoT security. The growing importance of security on these platforms to keep up with expanding functionality and automation is the main impetus behind security implementations shifting from software to hardware in embedded applications.

Global Embedded Security Market Restraints:

The predetermined assumption or perception is that embedded devices have sufficient encryption and authentication and are not susceptible to hacking, which significantly affects the growth of the embedded security market. Irregular security updates are another factor limiting the market expansion. Most of these systems do not receive security upgrades regularly and keep on operating their original software for a long after being deployed. Integrated devices are responsible for controlling many important elements, including communication networks, transportation infrastructure, and energy grids. Many of the facilities that modern civilization enjoys also depend on these systems. Attackers through cyberspace could stop embedded systems from operating, which could have disastrous results.

Enterprise security technologies do not safeguard or acknowledge the industrial protocols obeyed by embedded devices, which is one of the challenges faced by the embedded security market. Industrial Ethernet (EtherNet/IP, PROFINET), Fieldbus protocols (Modbus, PROFIBUS), HART protocols, etc. are some of the protocols that are not recognized. Using commercial tools for developing embedded products also restricts the market from expanding. Furthermore, these systems are frequently found in heterogeneous networks comprised of hardware with varying operating systems and from various suppliers. This could make settings in a security solution compatible with all devices challenging.

Impact of COVID-19 on the global embedded security market:

COVID-19 had a notable impact on the embedded security market. During the pandemic, many embedded system-based devices proved invaluable for dealing with emergency situations. The healthcare industry's future-shaping and life-saving innovations were driven by the embedded systems industry. Also, infrared thermal scanners were used to identify individuals with high temperatures due to COVID-19, and they were used as an infrared temperature sensor to convert IR energy into temperature values. Likewise, thermal surveillance cameras at airports were employed for identification. Hence, future technological developments could greatly benefit the market as there is scope for increased accuracy and error margin. Pulse oximeters, smartphone-embedded sensors with GPS and Bluetooth, and mobile apps are examples of changing dynamics.

REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2022 to 2028

Base Year

2022

Forecast Period

2023 to 2028

CAGR

9.30%

Segments Covered

By Offering, Security Type, Application, End Users & Region

Various Analyses Covered

Global, Regional, and country-level analysis; Segment-Level Analysis; DROC, PESTLE Analysis; Porter’s Five Forces Analysis; Competitive Landscape; Analyst Overview of Investment Opportunities

Regions Covered

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

 

This research report on the global embedded security market has been segmented and sub-segmented into the following categories.

Global Embedded Security Market - By Offering:

  • Element and Embedded SIM
  • Trusted Platform Module
  • Hardware Security Module

Based on offering, the hardware security module segment is expected to be the largest segment in the global market during the forecast period and held the major share of the worldwide market in 2022. The domination of the hardware security module segment is primarily driven by the growing usage of modern connected device security technology in the automotive sector. The aerospace, defense, and services sectors present strong growth opportunities as a result of the growing adoption of linked and embedded technologies. The demand for hardware-embedded protection will increase with the rising number of connected items and private data.

Global Embedded Security Market - By Security Type:

  • Authentication and Access management
  • Payments
  • Content protection

The payment segment is anticipated to lead the embedded security market in the coming years. Several factors have contributed to the prominence of these systems in payment applications. Primarily, it protects private information against exposure, misuse, and illegal access such as bank account and credit card details. Furthermore, it serves as a safeguard against criminal acts by using methods like biometric identification, device fingerprinting, and transaction inspection to confirm the legitimacy of the people initiating the payment. Additionally, embedded security helps companies comply with the increasingly stringent international legal requirements around payment application security.

Global Embedded Security Market - By Application:

  • Programming
  • Home and Industrial Automation

The home and industrial automation segment is projected to propel further during the forecast period. The increasing popularity of embedded systems as essential components in various industries results in a shift in the automation of industrial processes. It streamlines manufacturing processes, boosts productivity, and maximizes efficiency. Continuous surveillance is provided by the embedded system for safety. Modern technologies like AI, ML and IoT can be incorporated with it. The method allows efficient risk management and quick hazard identification. It also creates new opportunities for sophisticated analytics.

Global Embedded Security Market - By End Users:

  • Manufacturing
  • Automotive
  • Consumer Electronics
  • Others

The automotive segment is expected to grow at a higher CAGR in the coming years. It is expanding as a result of cars integrating more and more autonomous and networked technologies. Strong safety features will be required as cars become more autonomous and networked. There is a great need for security solutions in the automobile industry since reliable and embedded security is crucial for safeguarding vital vehicle systems and data. Car manufacturers are under pressure from regulations to incorporate security systems to safeguard confidential information and guarantee the safety of passengers.

Global Embedded Security Market - By Region:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • Middle East and Africa

North America holds the major share of the global embedded security market during the forecast period due to the recent rise in government action towards safeguarding confidential data and vital infrastructure. As the number of IoT devices rises, so does the demand for secure communication and data sharing between them. Therefore, government campaigns such as mandatory security regulations and particular budgetary allotments will propel the market in the region.

The European embedded security market will have an upward growth trend in the future. Electrophysiology devices are in demand owing to a spike in arrhythmia instances. Furthermore, the market is expanding due to the aging population who are increasingly susceptible to certain medical diseases. The market is expected to rise as more people become aware of the benefits of EP devices, which have greater success rates and fewer risks than previously used devices.

Asia Pacific is predicted to propel further at a faster rate. The market is being driven by the increasing use of critical infrastructure protection and embedded device security in the aerospace and defense sector and the automobile industry. Major corporations are employing tactics such as growth, cooperation, and innovation to propel the industry in the region. China's manufacturing facilities are propelling the growth of the market due to the quick adoption of new technologies such as IoT security and security for connected devices.

Latin America embedded security market is still in its early stages but is expanding quickly because of multiple factors. The rising popularity of connected devices and IoT, increasing awareness about cyber threats, growing urbanization, and disposable income are expected to move the market forward. However, it also faces some challenges that are hindering it from propelling including a lack of skilled cybersecurity professionals, restricted knowledge of embedded security solutions, limited infrastructure, and a diversified culture.

Middle East and Africa are in a transition phase and are expected to grow at an elevated growth rate during the forecast period. There are recently emerged political and security dynamics established between the countries that could benefit from the interregional embedded security which is essentially a complicated and critical analysis of the regional security. Many countries have started to participate in political and security matters with states in Africa. However, Turkey and the United Arab Emirates (UAE) have been the most notable and influential in this regard.

KEY MARKET PLAYERS:

The major players in the Embedded Security Market are NXP semiconductors, STMicroelectronics, Gemalto, Renesas, Qualcomm, Infineon, Microchip, Samsung, Texas, IDEMIA, Inside Secure

RECENT HAPPENINGS IN THE MARKET:

  • In November 2023, a cryptographic algorithm suite developed by ETAS GmbH and Infineon Technologies AG was certified by the National Institute of Standards and Technology under the Cryptographic Algorithm Verification Program for ESCRYPT CycurHSM, an automotive embedded security software stack. Infineon's 2nd generation AURIX TC3xx hardware security module is used to create the automobile-embedded security software stack.
  • In July 2023, a Memorandum of Understanding was inked by NXP Semiconductors and Mahindra & Mahindra Ltd. for embedded applications. The auto manufacturer intends to leverage NXP's broad range of automotive system solutions, as well as its know-how in sophisticated auto networks, modernization, safe car access technologies, and zonal and domain controllers.

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FAQ's

1. What challenges are associated with implementing Embedded Security?

Challenges may include the complexity of integrating security into existing systems, ensuring backward compatibility, and addressing potential vulnerabilities arising from hardware or software flaws.

2. How is Embedded Security evolving with advancements in technology?

The Embedded Security Market is evolving with advancements in AI-driven security, post-quantum cryptography, and the integration of security measures in edge computing environments.

3. How does Embedded Security address the challenge of firmware attacks?

Embedded security employs measures such as secure boot, code signing, and encryption to protect firmware from unauthorized modifications and ensure the integrity of the software running on embedded devices.

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