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 growth of the embedded security market is attributed to several key factors. Firstly, the increased connectivity of devices and gadgets to the Internet, known as IoT, makes them vulnerable to cyberattacks. Security tools integrated into these devices play a role in safeguarding them from such attacks. Secondly, the use of advanced AI, specifically generative AI, to create malicious content that can harm devices is on the rise. Security tools are effective in detecting and preventing these harmful actions. Thirdly, the need for safeguarding devices like smartwatches used for payments against fraudulent activities is driving market growth. Additionally, regulations in different countries are mandating the use of security tools, which are becoming more affordable, user-friendly, and powerful. These combined factors contribute significantly to the expansion of the embedded security market.

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Hardware segment likely to account for largest market share for embedded security market from 2023 to 2028
Hardware-embedded security is essential to protect sensitive data in a variety of applications. As the number of connected devices and the amount of sensitive data continues to grow, the need for hardware-embedded security will only become more critical. The most commonly used hardware security are secure elements, embedded SIM, trusted platform modules, hardware security modules, and hardware tokens. A secure element is a tamper-resistant microchip that is used to store cryptographic keys and perform cryptographic operations. Secure elements are often used in payment cards, mobile devices, and other IoT devices to protect sensitive data. An embedded SIM (eSIM) is a digital SIM card that is embedded in a device. eSIMs are becoming increasingly popular as they offer a more secure and convenient way to manage cellular connectivity.

Smart Identity Cards application segment to witness the largest market share in the overall embedded security market during the forecast period
The widespread adoption of embedded security in smart identity card applications can be attributed to several key factors. Firstly, the increasing popularity of smart identity cards for verifying individuals’ identities, driven by the growing need for secure identification in areas such as e-government services, border control, and access management. Secondly, the advancing sophistication of cyberattacks that traditional security measures struggle to counter, making embedded security essential for protecting smart identity cards from these evolving threats. Additionally, the rising regulatory emphasis on the security of smart identity cards worldwide necessitates the integration of embedded security to ensure compliance. Lastly, there's a demand for seamless user experiences, prompting the inclusion of embedded security features that enhance security without compromising user-friendliness or convenience.

APAC to lead the embedded security market between 2023 and 2028 owing to the surging adoption of embedded security devices in end-use applications such as consumer IoT Devices, wearables, and automobiles
A combination of influential factors is propelling the embedded security market in the Asia Pacific region. There's a significant surge in the adoption of embedded security in various end-use applications, including IoT devices, automotive systems, and wearables. This is due to the increasing recognition of embedded security's crucial role in safeguarding sensitive data and ensuring the integrity of these interconnected technologies. Additionally, the growing prevalence of cyber threats and sophisticated attacks in the region necessitates more robust security measures, leading to an increased demand for embedded security solutions.

The embedded security companies is dominated by a few globally established players such as Infineon (Germany), STMicroelectronics (Switzerland), NXP (Netherlands), Qualcomm (US), Thales Group (France), Microchip Technology (US), and Texas Instruments (US).