Embedded Security Market (Updated Version Available)
Embedded Security Market by Component (Hardware, Software, and Services), Application (Payment, Authentication, Content Protection, and Others), End-User (Automotive, Healthcare, Telecommunications, Consumer Electronics, Aerospace & Defense, BFSI and Others), By Region, and Forecast Period-2023- 2030
Report ID : RI_673783 | Date : February 2023 |
Format : 
Key Market Overview:
The Global Embedded Security Market was valued at USD 8.77 Billion in 2022, registering a CAGR of 11.20% during the forecast period (2023-2030), and the Market is projected to be worth USD 20.78 Billion by 2030.
Embedded security is a critical approach to protect the software running on embedded systems including microcontrollers, microprocessors, sensors, actuators, communication modules, and other connected devices from attacks such as malware, and network attacks. An embedded system is a type of computer system that is designed to perform specific tasks or functions within a larger device or product. The system consists of a programmable hardware component with a minimal operating system and software. Additionally, the system is often used in critical applications including medical devices, automotive systems, and industrial control systems. Embedded systems are frequently utilized in various sectors, including automotive, aerospace and defense, medical devices, industrial control systems, and smart homes & buildings. Embedded security involves integrating security features and controls into the design and development process.
The embedded security market is anticipated to grow with increasing number of devices and systems that are connected to the internet. For instance, rise in use of smart home devices including internet-connected thermostats, security cameras, and door locks is positively impavting the market growth. Furthermore, the surge in amount of personal and sensitive data stored on the internet-connected devices and systems is fueling the adoption of embedded security systems.
Embedded Security Market Coverage
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Market Dynamics:
Driver:
The increasing frequency and severity of cyber-attacks is boosting the demand for embed security features to better protect against the threats from several industries including automotive, BFSI, and others. The BFSI sector uses embedded security in point-of-sale (POS) devices and ATMs to protect against card skimming and other types of fraud. For instance, American Express offers EMV chip cards that is equipped with an embedded microprocessor chip to increase the transaction security by exchanging authentication data with terminals. Further, the increasing adoption of connected cars and advanced driving assistance systems (ADAS) is fuelling the demand for security in the vehicles. This in turn is driving the demand for embedded security in the automotive industry. For instance, the Tesla Model 3 is equipped with hardware-based security system to protect against unauthorized access to the vehicles systems and to prevent tampering with the vehicles firmware.
Restraint:
The potential risks associated with the embedded security systems are the security threat that range from data breaches and loss of confidential information to financial losses and reputational damage. For businesses that use embedded systems, the impact of a security breach could be particularly severe, as it could potentially affect the entire system and lead to operational disruption or downtime.
Opportunities
Advancements in blockchain technology is anticipated to provide lucrative growth opportunities for the market during upcoming period. Blockchain technology is considered to be a potential solution for securing embedded systems. The blockchain technology enables embedded security solutions to create a decentralized, tamper-proof record of all system transactions, making it difficult for hackers to manipulate the system. For instance, the Guardtime, a blockchain-based platform provides embedded security solutions for healthcare industry data. The platform uses blockchain technology to create a decentralized, tamper-proof record of all patient health records, making it difficult for hackers to compromise the data.
Embedded Security Market Segmentation:
By Component
The component segment is trifurcated into hardware, software, and services. The software segment dominated the market in terms of revenue share in 2022, due to the growing demand for secure and reliable software solutions for embedded systems. Embedded software is used in a wide range of applications, including automotive, aerospace, medical devices, and industrial control systems. Additionally, the increasing adoption of IoT and connected devices is driving the demand for secure software solutions.
Furthermore, the services segment is projected to show significant growth in forecast period due to the growing demand for consulting and support services related to embedded security. Moreover, the companies are seeking out specialized services to help them develop and implement secure embedded systems, and to address the increasingly complex threat landscape.
By Application
The Application segment is divided into payment, authentication, content protection, and others. The payment segment contributed the largest share in terms of revenue, due to the increasing use of digital payments and mobile wallets that require secure transaction capabilities to protect against fraud and hacking. Embedded security solutions including Secure Element (SE) chips and Trusted Execution Environments (TEEs) are widely used to provide secure authentication and encryption of financial transactions. For instance, NXP semiconductor provides NXP EdgeLock secure elements (SE) and secure authenticators (SA) in for providing highly reliable ICs along with delivering real end-to-end security from edge to cloud.
Furthermore, the authentication segment is projected to grow with fastest CAGR during the forecast period, driven by the increasing demand for secure access to devices and data. The segment includes biometric authentication solutions including fingerprint and facial recognition, as well as hardware-based security features including Secure Boot and Secure Firmware Update.
By End-User Type:
The end-user segment is classified into automotive, healthcare, telecommunications, consumer electronics, aerospace & defense, and others. The automotive segment accounted for largest market share in 2022, owing to the growing demand for connected cars and advanced driver assistance systems (ADAS) that require secure embedded systems. The use of embedded security in the automotive industry helps to prevent unauthorized access, theft, and cyber-attacks, thereby ensuring the safety and security of both the vehicle and the passengers.
Further, the consumer electronics segment is anticipated to register the fastest growing CAGR over the forecast period attributed to the growing trend towards AR (Augumentd Reality) and VR (Virtual Reality) initiatives along with artificial intelligence (AI) and machine learcning.
By Region
In 2022, North America accounted for largest revenue share in the market due to the presence of several key players including Oualcomm, IBM, Intel and Cisco in the region. Moreover, the high adoption of embedded security solutions in various industries, such as consumer electronics, automotive, and healthcare is driving the demand for embedded security in North America.
The Asia Pacific region is expected to grow with fastest CAGR over the forecast period, attributed to the increasing adoption of smart devices. Additionally, the growing trend of digitalization in various industries is also boosting the embedded security market. Moreover, increasing investments in the development of 5G technology and IoT-enabled devices in countries including China, Japan, and South Korea is anticipated to positively impact the market growth. For instance, in August 2020, China Mobile, one of the largest mobile operators, invested USD 8.7 billion in 5G technology. Additionally, the rising concern for data privacy and security is also expected to drive the demand for embedded security solutions in the region during the forecast period.
Embedded Security Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), product innovation, various business strategies, and Application launches have accelerated the growth of the Sample Preparation market. Key players in the market include-
• Infineon Technologies AG
• STMicroelectronics N.V.
• McAfee, LLC
• Microchip Technology Inc.
• Intellias Ltd.
• Karamba Security Ltd.
• Samsung Electronics Co.,
• Idemia Group
• Rambus Incorporated
• Alx System
• Sirin Software
Recent Developments
• In January 2022, Thales Group launched SafeNet MobilePASS+ 2.2, a mobile authenticator, designed for Android and Windows platforms. The product enables users to approve push authentication requests and generate secure one-time passcodes with a single swipe.
• In February 2021, NXP Semiconductor launched EdgeLock 2GO, an IoT device designed for secure deployment and maintenance and is equipped with zero-touch functionality. The device provides high-end security to IoT systems with advanced features, reducing the risk of attacks and other security breaches
The Global Embedded Security Market was valued at USD 8.77 Billion in 2022, registering a CAGR of 11.20% during the forecast period (2023-2030), and the Market is projected to be worth USD 20.78 Billion by 2030.
Embedded security is a critical approach to protect the software running on embedded systems including microcontrollers, microprocessors, sensors, actuators, communication modules, and other connected devices from attacks such as malware, and network attacks. An embedded system is a type of computer system that is designed to perform specific tasks or functions within a larger device or product. The system consists of a programmable hardware component with a minimal operating system and software. Additionally, the system is often used in critical applications including medical devices, automotive systems, and industrial control systems. Embedded systems are frequently utilized in various sectors, including automotive, aerospace and defense, medical devices, industrial control systems, and smart homes & buildings. Embedded security involves integrating security features and controls into the design and development process.
The embedded security market is anticipated to grow with increasing number of devices and systems that are connected to the internet. For instance, rise in use of smart home devices including internet-connected thermostats, security cameras, and door locks is positively impavting the market growth. Furthermore, the surge in amount of personal and sensitive data stored on the internet-connected devices and systems is fueling the adoption of embedded security systems.
Embedded Security Market Coverage
| Report Attributes | Report Details |
| Study Timeline | 2016-2030 |
| Market Size in 2030 (USD Billion) | 20.78 Billion |
| CAGR (2023-2030) | 11.2 % |
| Base Year | 2022 |
| By Component | Hardware, Software, And Services |
| By Application | Payment, Authentication, Content Protection, and Others |
| By End-User | Automotive, Healthcare, Telecommunications, Consumer Electronics, Aerospace & Defense, BFSI, and Others |
| By Geography | |
| Key Players | Infineon Technologies AG, STMicroelectronics N.V., Texas Instruments Inc., McAfee, LLC, Microchip Technology Inc., Intellias Ltd., Karamba Security Ltd., Samsung Electronics Co., Idemia Group, Rambus Incorporated, Alx System, Sirin Software, |
Market Dynamics:
Driver:
The increasing frequency and severity of cyber-attacks is boosting the demand for embed security features to better protect against the threats from several industries including automotive, BFSI, and others. The BFSI sector uses embedded security in point-of-sale (POS) devices and ATMs to protect against card skimming and other types of fraud. For instance, American Express offers EMV chip cards that is equipped with an embedded microprocessor chip to increase the transaction security by exchanging authentication data with terminals. Further, the increasing adoption of connected cars and advanced driving assistance systems (ADAS) is fuelling the demand for security in the vehicles. This in turn is driving the demand for embedded security in the automotive industry. For instance, the Tesla Model 3 is equipped with hardware-based security system to protect against unauthorized access to the vehicles systems and to prevent tampering with the vehicles firmware.
Restraint:
The potential risks associated with the embedded security systems are the security threat that range from data breaches and loss of confidential information to financial losses and reputational damage. For businesses that use embedded systems, the impact of a security breach could be particularly severe, as it could potentially affect the entire system and lead to operational disruption or downtime.
Opportunities
Advancements in blockchain technology is anticipated to provide lucrative growth opportunities for the market during upcoming period. Blockchain technology is considered to be a potential solution for securing embedded systems. The blockchain technology enables embedded security solutions to create a decentralized, tamper-proof record of all system transactions, making it difficult for hackers to manipulate the system. For instance, the Guardtime, a blockchain-based platform provides embedded security solutions for healthcare industry data. The platform uses blockchain technology to create a decentralized, tamper-proof record of all patient health records, making it difficult for hackers to compromise the data.
Embedded Security Market Segmentation:
By Component
The component segment is trifurcated into hardware, software, and services. The software segment dominated the market in terms of revenue share in 2022, due to the growing demand for secure and reliable software solutions for embedded systems. Embedded software is used in a wide range of applications, including automotive, aerospace, medical devices, and industrial control systems. Additionally, the increasing adoption of IoT and connected devices is driving the demand for secure software solutions.
Furthermore, the services segment is projected to show significant growth in forecast period due to the growing demand for consulting and support services related to embedded security. Moreover, the companies are seeking out specialized services to help them develop and implement secure embedded systems, and to address the increasingly complex threat landscape.
By Application
The Application segment is divided into payment, authentication, content protection, and others. The payment segment contributed the largest share in terms of revenue, due to the increasing use of digital payments and mobile wallets that require secure transaction capabilities to protect against fraud and hacking. Embedded security solutions including Secure Element (SE) chips and Trusted Execution Environments (TEEs) are widely used to provide secure authentication and encryption of financial transactions. For instance, NXP semiconductor provides NXP EdgeLock secure elements (SE) and secure authenticators (SA) in for providing highly reliable ICs along with delivering real end-to-end security from edge to cloud.
Furthermore, the authentication segment is projected to grow with fastest CAGR during the forecast period, driven by the increasing demand for secure access to devices and data. The segment includes biometric authentication solutions including fingerprint and facial recognition, as well as hardware-based security features including Secure Boot and Secure Firmware Update.
By End-User Type:
The end-user segment is classified into automotive, healthcare, telecommunications, consumer electronics, aerospace & defense, and others. The automotive segment accounted for largest market share in 2022, owing to the growing demand for connected cars and advanced driver assistance systems (ADAS) that require secure embedded systems. The use of embedded security in the automotive industry helps to prevent unauthorized access, theft, and cyber-attacks, thereby ensuring the safety and security of both the vehicle and the passengers.
Further, the consumer electronics segment is anticipated to register the fastest growing CAGR over the forecast period attributed to the growing trend towards AR (Augumentd Reality) and VR (Virtual Reality) initiatives along with artificial intelligence (AI) and machine learcning.
By Region
In 2022, North America accounted for largest revenue share in the market due to the presence of several key players including Oualcomm, IBM, Intel and Cisco in the region. Moreover, the high adoption of embedded security solutions in various industries, such as consumer electronics, automotive, and healthcare is driving the demand for embedded security in North America.
The Asia Pacific region is expected to grow with fastest CAGR over the forecast period, attributed to the increasing adoption of smart devices. Additionally, the growing trend of digitalization in various industries is also boosting the embedded security market. Moreover, increasing investments in the development of 5G technology and IoT-enabled devices in countries including China, Japan, and South Korea is anticipated to positively impact the market growth. For instance, in August 2020, China Mobile, one of the largest mobile operators, invested USD 8.7 billion in 5G technology. Additionally, the rising concern for data privacy and security is also expected to drive the demand for embedded security solutions in the region during the forecast period.
Embedded Security Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), product innovation, various business strategies, and Application launches have accelerated the growth of the Sample Preparation market. Key players in the market include-
• Infineon Technologies AG
• STMicroelectronics N.V.
• McAfee, LLC
• Microchip Technology Inc.
• Intellias Ltd.
• Karamba Security Ltd.
• Samsung Electronics Co.,
• Idemia Group
• Rambus Incorporated
• Alx System
• Sirin Software
Recent Developments
• In January 2022, Thales Group launched SafeNet MobilePASS+ 2.2, a mobile authenticator, designed for Android and Windows platforms. The product enables users to approve push authentication requests and generate secure one-time passcodes with a single swipe.
• In February 2021, NXP Semiconductor launched EdgeLock 2GO, an IoT device designed for secure deployment and maintenance and is equipped with zero-touch functionality. The device provides high-end security to IoT systems with advanced features, reducing the risk of attacks and other security breaches
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| Corporate user | : $7460 |
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| Multi user | : $5460 |
| Corporate user | : $7460 |
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