Northbrook, IL 60062 -- (SBWire) -- 12/22/2023 --The embedded security market size has been estimated to be valued at USD 7.4 Billion in 2023 and is projected to reach USD 9.8 Billion by 2028, growing at a CAGR of 5.7% from 2023 to 2028.

The key factors propelling the demand for embedded security systems include the growing urgency to combat cyber risks, secure interconnected devices, and protect sensitive data across a wide spectrum of applications. The ubiquity of online financial transactions mandates the inclusion of embedded security systems to establish secure and tamper-resistant payment procedures, ensuring users' financial information protection.

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The embedded security market based on security type has been segmented into authentication and access management, payment, and content protection. Payment segment held the largest market share in 2022. Embedded security systems are integral to ensuring robust payment processing security for a multitude of reasons. They safeguard sensitive financial data, prevent fraud, and enable secure transactions, instilling consumer confidence and aiding compliance with strict industry standards like PCI DSS. Multi-factor authentication methods enhance protection, especially in mobile payments, while encryption and tokenization techniques further shield payment information. Such security measures foster consumer trust, loyalty, and regulatory adherence, which are essential for maintaining a secure and trustworthy payment environment.

The embedded security market has been segmented based on offering into hardware, software, and services. The hardware segment includes the secure element, embedded sim, trusted platform module, hardware security module, and hardware tokens. Hardware-embedded security holds significant importance in various contexts, facilitated by specific examples. Secure elements like tamper-resistant microchips are used in payment cards and mobile devices to safeguard sensitive information. Embedded SIMs (eSIMs) offer secure cellular connectivity management, while hardware security modules (HSMs) provide cryptographic key storage for financial institutions. Hardware tokens authenticate users through biometrics. These measures are crucial for safeguarding data. Payment cards employ secure elements to protect PINs, mobile devices use features like fingerprint sensors, and IoT devices employ secure elements and HSMs to counteract internet-based threats. Financial institutions leverage HSMs and hardware tokens to secure customer data. As connected devices and sensitive data continue to proliferate, hardware-embedded security's significance remains paramount.

The embedded security market has been segmented based on application into wearables, smartphones, automotive, smart identity cards, industrial, payment processing and card, and others. The automotive application segment is likely to witness significant growth during the forecast period. Connected cars are propelling the growth of embedded security systems in the market due to heightened connectivity, vulnerability to hacking, data privacy concerns, the necessity for secure OTA updates, vehicle-to-everything (V2X) communication risks, regulatory mandates, consumer confidence restoration, insurance considerations, and supply chain security. As the complexity of connected car systems grows, embedded security becomes essential for safeguarding against cyber threats, protecting sensitive data, ensuring safe updates, and complying with regulations, shaping the future of vehicle cybersecurity and safety. As the automotive sector continues to innovate, embedded security systems are paramount to ensure driver safety and connected vehicle technologies' long-term success.

UK is likely to dominate the European embedded security market by 2028. This is mainly due to rising cases of cyberattacks in the country. Businesses in the UK are increasingly facing the challenge of cyber-attacks. Most of the common breaches encountered were through fraudulent emails, viruses, and malware. The increasing range of connected devices is creating more opportunities for exploitation. According to the UK government's report (Cyber security skills in the UK labour market 2021), half of the enterprises in the UK have cyber skills gaps. It also claimed that 680,000 organizations have cyber security professionals who lack confidence in performing fundamental responsibilities outlined in the Cyber Essentials framework.