P.A.ID Strategies has launched its new Digital Secure Solutions: Credentials, Embedded + IoT Devices Market Intelligence Service to clients. It found that the market for secure credentials and embedded hardware for connected devices increased in value by 15.4% in 2018 and is forecast to rapidly grow by a further 41% by 2022 as emerging applications in the IoT implement security and digital credentials are introduced alongside existing smart cards.
IoT sectors, including automotive, industrial, ICT infrastructure, logistics and supply chain, object ID, smart home and consumer, and utilities will increasingly look to proven hardware-based secure solutions in order to meet regulatory, service provider and end-user requirements and concerns regarding security and data protection.
Traditional credentials, such as smart cards, will continue to account for the majority of market volume although the ability to create, access and share digital credentials, plus securing connected devices, will drive adoption of higher value solutions.
Combined, these trends will see demand jump from 14.2 billion units last year to 18.8 billion units in 2022 for a combination of authentication ICs, embedded secure elements (eSEs), embedded SIMs (eSIMs), hardware security modules (HSMs), secure microprocessors, smart card ICs, secure access modules (SAMs), trusted execution environments (TEEs) and trusted platform modules (TPMs).
“Smart cards have been a proven and trusted solution for 20 years although adoption has been unsteady, even in established sectors such as banking and government. We expect that the same will happen in these new IoT applications; it will not be even and steady despite there being a recognised need to implement security” said John Devlin, principal analyst at P.A.ID Strategies.
“Automotive has been the first to move, with deals being struck between OEMs with companies like G+D Mobile Security, Infineon and Trustonic eSIMs, TPMs and TEEs to ensure cars remain safe and secure as they become more connected and autonomous” he added. “Some sectors are more fragmented and will either take regulation or a major breach to move the market forward.
Smart home and consumer devices are quick to market and do not always have security built in by design. With California and Japan having confirmed that they are looking to introduce legislation in 2020 to ensure that device OEMs and brands have a responsibility to ensure a minimum and reasonable level of security this is set to change.”
Protection of IP and device/object authentication have been found to be the drivers for high volume solutions, such as authentication ICs, as well as high value ones, such as HSMs. These will be important to identity devices on networks and ensure data integrity and protection as well as protecting brand value, whether consumables, spares or preventing unauthorised production runs.
Concurrently, the need to provide secure platforms and secure communication channels for the protection of personal data as well as operational and device management purposes is increasing as companies trial and implement their IoT strategies.