“Embedded Security Market size is projected to grow from USD 6.8 billion in 2022 to USD 9.0 billion by 2027; it is expected to grow at a CAGR of 5.9% from 2022 to 2027.
Some of the prominent key players are: Infineon (Germany), STMicroelectronics (Switzerland), NXP (Netherlands), Qualcomm(US), Thales Group(France), Microchip Technology (US),Samsung (South Korea), Texas Instruments (US), IDEMIA (France), Renesas (Japan).
The key factors contributing to the growth of the embedded security market include increasing use of IoT-based applications, payments functionality in wearables, increasing cyber threats. However, the cost associated with hardware security modules is hindering the growth of the embedded security market. The impact of COVID-19 on the supply chain and the global chip shortage possesses a huge challenge to the industry. However, growing demand for embedded security in electric and semi-autonomous vehicles is the biggest opportunity in the market space with APAC having the highest market share and the highest CAGR for the forecast period.
Wearables are likely to register high CAGR
The market for wearables is growing at the highest CAGR of 5.9% during the forecast period. For effective communication, wearable technology is increasingly being integrated with management systems such as CRM and facial recognition. Furthermore, businesses in the manufacturing industry are using AR and VR technology in training domains such as knowledge transfer for front-line workers, which is propelling the industrial wearables market forward. Apart from that, the market is driven by automation in manufacturing facilities and improvements in technologies such as IoT, AI, and the cloud. Investments in automation, the launch of new and innovative products, and the rise of wearable devices are providing a boost to the market
Payments to hold the highest market share by the end of 2027.
Payments are expected to hold 43.3% of the market share by 2027. Payments security type provides secure transaction of data between merchants and users. Payments security provides secure transmission through tokenization, encryption, fraud detection, and prevention. In the year 2020, the global transaction value of digital payments was approximately 5 trillion dollars. The advancements in technology and increasing use of payments are expected to boost the market during the forecast period.
Software is projected to dominate the embedded security market
The software security market is expected to hold the largest market share by 2027. Software security secures any software from malicious attacks preventing the virus to reach its intended targets. Companies are using software security to protect their devices from cyber attacks. The growing cyberattacks are expected to boost the market during the forecast period.