Embedded Security Market Projected to Reach USD 9.8 Billion by 2028, Driven by Rising Cybersecurity Threats and Interconnected Devices
The global embedded security market is expected to reach a valuation of USD 9.8 billion by the year 2028, according to a new report by MarketsandMarkets. The market, which was estimated at USD 7.4 billion in 2023, is projected to grow at a compound annual growth rate (CAGR) of 5.7% between 2023 and 2028. This growth can be attributed to the increasing prevalence of interconnected devices and the escalating complexity of cyberattacks, highlighting the need for enhanced security measures.
The rising threat landscape and the proliferation of connected devices have created significant challenges for individuals and organizations alike. The report emphasizes the urgency for heightened security measures to combat these cybersecurity threats. As a result, the demand for embedded security solutions has witnessed a substantial increase over the years.
Key Findings and Drivers:
1. Connected Devices and Cybersecurity Threats: The rising prevalence of interconnected devices and the increasing complexity of cyberattacks are key factors driving the growth of the embedded security market. As more devices become interconnected, the potential for cyber threats also increases, necessitating robust security solutions.
2. Regulatory Compliance: The need to comply with regulatory mandates is another important driver of market growth. Organizations across industries are required to adhere to specific security standards and regulations to safeguard sensitive data. This creates a demand for embedded security solutions that help meet these compliance requirements.
3. User-Friendly Security Solutions: In addition to regulatory compliance, the demand for integrated security solutions that seamlessly blend with user experiences is also contributing to market growth. Consumers value convenience and user-friendliness, leading to the adoption of embedded security solutions that prioritize both security and usability.
4. Diverse Solutions: The accessibility of diverse embedded security solutions is also propelling market growth. This allows organizations to choose from a wide range of security options based on their specific requirements and budget.
Application Insights:
1. Wearables: The wearables segment is expected to witness the highest growth rate during the forecast period. With wearables often containing sensitive information, such as health and financial data, advanced embedded security solutions are needed to prevent unauthorized access and data breaches.
Security Type Insights:
1. Authentication and Access Management: This segment is expected to be the second-largest security type during the forecast period. Implementing authentication and access management helps ensure only legitimate users can access resources, reducing risks and helping organizations adhere to regulatory standards.
Offering Insights:
1. Software: The software segment is expected to register a higher growth rate in the overall embedded security market. Commonly used software security solutions include firewalls, antivirus software, and network security solutions, all of which play a crucial role in safeguarding against cyber threats.
Regional Insights:
1. North America: The North American region is expected to account for the second-largest market share by 2028. This can be attributed to the region’s wealth of highly sensitive data, as well as the government’s focus on cybersecurity as a key economic and national security challenge.
Key Players:
The key players in the embedded security market include Infineon, STMicroelectronics, NXP, Qualcomm, Thales Group, Microchip Technology, Samsung, Texas Instruments, IDEMIA, and Renesas. These players have adopted various strategies to expand their global presence and increase their market shares.
In conclusion, the embedded security market is projected to witness significant growth in the coming years, driven by the increasing prevalence of interconnected devices and the escalating complexity of cyberattacks. As organizations prioritize security measures to protect sensitive data, the demand for embedded security solutions is expected to rise. The market offers diverse solutions to cater to different requirements, with a particular focus on wearables and authentication/access management. With North America leading the way in terms of market share, key players in the industry are actively expanding their global presence.
