Embedded Security Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Embedded Security Market is Segmented by Component Type (Hardware, Software, and Service), Application (Payment, Authentication, and More), End-User Industry (Automotive, Healthcare, Consumer Electronics, and More), Deployment (On-Premise and Cloud), and Geography.

Embedded Security Market Size and Share

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Embedded Security Market Analysis by Mordor Intelligence

The embedded security market is valued at USD 9.25 billion in 2025 and is forecast to reach USD 15.06 billion by 2030, reflecting a 10.22% CAGR. Demand is being propelled by the rapid spread of IoT edge devices, rising automotive cybersecurity mandates, and stricter regulations that require security-by-design across every connected product. Hardware-rooted trust elements now ship inside an expanding range of consumer electronics, industrial controllers, and vehicle ECUs, while post-quantum cryptography capability is moving from pilot projects to mainstream roadmaps. Semiconductor vendors are pairing secure elements with on-device AI threat analytics to block attacks in real time, and service providers are filling skill gaps through managed offerings that guide customers through complex migration, certification, and lifecycle management challenges. Competitive differentiation increasingly comes from power-efficient architectures that fit within tight size, weight, and cost envelopes, enabling security even in ultra-low-power sensors.

Key Report Takeaways

  • By component type, hardware captured 69.2% of the embedded security market share in 2024, whereas services are projected to expand at a 14.2% CAGR through 2030. 
  • By application, authentication secured 36.7% of the embedded security market share in 2024, while content protection is expected to grow at a 15.7% CAGR to 2030. 
  • By end-user industry, consumer electronics held 29.2% of the embedded security market share in 2024; the automotive segment is advancing at a 16.2% CAGR during 2025-2030. 
  • By deployment type, cloud captured 57% of the embedded security market share in 2024 and is set to grow at a robust 13.22% CAGR through 2030.  
  • By geography, Asia Pacific led with 37.8% revenue share in 2024, whereas South America is on track for a 13.3% CAGR between 2025 and 2030.

Segment Analysis

By Component Type: Hardware foundations cement leadership as services surge

Hardware elements represented 69.2% of 2024 revenue, confirming their role as the anchor of trust chains that span bootloaders to the cloud. Secure elements, hardware security modules, and trusted execution environments isolate keys from application processors, blocking fault-injection and side-channel attacks even if host firmware is breached. Accelerated rollouts in payment cards, utility meters, and driver-monitoring cameras continue to enlarge the overall embedded security market volume. Meanwhile, the services ecosystem is scaling: audits, penetration testing, PKI hosting, and managed key rotation collectively advance at a 14.2% CAGR, reflecting customer reliance on external expertise for post-quantum transitions and 24/7 compliance monitoring.

The shift toward subscription models helps OEMs spread costs over device lifecycles, bolstering predictable revenue streams for vendors. Material inflation in advanced nodes has already nudged buyers to seek maximal ROI from every secure chip, driving adoption of add-on services such as certificate management and firmware scanning. This trend enlarges the embedded security market size for professional and managed services, bringing new entrants from traditional IT security into the edge device arena.

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Note: Segment shares of all individual segments available upon report purchase

By Application: Authentication anchors growth while content protection accelerates

Authentication held a 36.7% share during 2024, underpinned by pervasive use of mutual-authentication protocols in industrial gateways, medical devices, and connected cards. Biometric enhancements - from fingerprint sensors in access badges to facial recognition inside vehicle cabins -strengthen multi-factor schemes and deepen silicon content per endpoint. Streaming, gaming, and collaborative design tools are driving the fastest expansion in content protection, forecast at 15.7% CAGR, as rights owners demand on-chip decryption, watermarking, and anti-rollback safeguards. 

Piracy losses, heightened by 8K content and cloud gaming, make hardware-rooted digital rights management indispensable. Hybrid architectures blend secure decoders with cloud license servers, adding depth to the embedded security market. Secure payment, secure boot, and data-at-rest protection remain foundational use cases that capitalize on economies of scale created by authentication and content pipelines.

By End-User Industry: Consumer electronics dominates while automotive races ahead

Consumer electronics contributed 29.2% of 2024 sales, reflecting the ubiquity of smartphones, wearables, and smart-home hubs. Each new product cycle embeds stronger tamper-resistance and AI-driven anomaly detection, turning cybersecurity into a key purchasing criterion. OEMs leverage secure elements not only for user data privacy but also for anti-counterfeit checks that protect brand integrity. This momentum keeps the embedded security market firmly anchored in high-volume consumer channels, even as pricing pressure encourages wafer-level integration. 

Automotive demand, however, is climbing at 16.2% CAGR through 2030. Regulation, electrification, and autonomy multiply the lines of code per vehicle, prompting OEMs to harden ECUs with secure boot, firewall-grade zonal gateways, and encryption of vehicle-to-cloud telemetry. Cybersecurity management systems mandated by UN R155 trigger new revenue streams for silicon vendors, toolchains, and service partners specializing in compliance, incident response, and post-quantum readiness. Healthcare, telecom, aerospace, and defense each add steady niches where device integrity underpins safety, uptime, or national security, collectively enriching the embedded security industry landscape.

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Note: Segment shares of all individual segments available upon report purchase

By Deployment Model: Cloud Environments Gain Momentum

In 2025, cloud-based deployments are set to dominate the embedded security market, capturing a robust 57% share, translating to a substantial USD 74.80 billion. This surge is driven by organizations migrating workloads to the cloud, seeking enhanced scalability and reduced infrastructure costs. Yet, while cloud deployments are on a rapid ascent, boasting a 13.22% CAGR, this growth underscores a pragmatic balance: organizations are weighing cloud advantages against the need for on-premises solutions for specific workloads. Such a balanced approach is especially pronounced in regulated sectors like healthcare, where data sovereignty and compliance often mandate a hybrid model.

On-premise deployments, while still vital in sectors with stringent security needs or those tethered to legacy systems, are witnessing a slow but steady decline in market share. This shift towards cloud and hybrid models is not just a trend but a response to the maturing landscape of cloud services and an escalating demand for flexible application deployment. Highlighting this momentum, Morgan Lewis notes a significant expansion in cloud services, bolstered by hefty AI investments driving performance gains. As organizations increasingly pivot to a cloud-first strategy for embedded security, it opens avenues for service providers adept in cloud migration and hybrid environment oversight.

Embedded Security Market
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Geography Analysis

Asia Pacific generated 37.8% of 2024 revenue, buoyed by its consumer-electronics manufacturing dominance and escalating smart-factory investments. National chip self-sufficiency programs in China, Japan, and South Korea promote local fabrication of secure elements, shortening supply chains and lowering import exposure. Regulatory attention to connected device safety now mirrors Europe’s caution, steering procurement toward certified hardware roots of trust. As a result, the embedded security market size within Asia Pacific is set to climb steadily, supported by factory automation retrofits and next-gen smartphone launches. 

South America, although smaller, is projected to post a 13.3% CAGR thanks to large-scale automotive and 5G infrastructure build-outs. Stellantis’ USD 6.1 billion commitment through 2030 exemplifies how OEM capital inflows catalyze regional semiconductor ecosystems. Brazilian contract manufacturers are partnering with European IP vendors to deploy secure elements for flex-fuel hybrid powertrains, raising local content requirements that feed the embedded security market. Sovereign data-protection laws across the region add further impetus by mandating on-device encryption and lifecycle key management. 

North America commands a robust share, underlined by leadership in post-quantum algorithm development and defense-grade secure architectures. Federal critical-infrastructure programs funnel grants into utilities and transportation networks, translating into volume orders for hardware-based key vaults. Europe’s landscape is reshaped by the Cyber Resilience Act, driving broad security-by-design adoption and harmonized certification frameworks that spur embedded security market expansion among consumer, medical, and industrial OEMs. Middle East & Africa, though currently modest, registers sustained growth through smart-city deployments and critical-asset protection initiatives across energy and transport corridors.

Embedded Security Market
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Competitive Landscape

Market concentration is moderate. Infineon Technologies, NXP Semiconductors, and STMicroelectronics remain leading suppliers of secure elements and microcontrollers that anchor enterprise, automotive, and industrial builds. Collectively, they hold a sizeable share yet leave room for mid-tier and niche players that innovate on power efficiency, post-quantum readiness, and auditable open architectures. Recent M&A has intensified solution breadth: Cadence acquired Secure-IC to fuse security IP blocks directly into EDA flows, enabling designers to harden SoCs early in the layout phase. 

Chipmakers also forge vertical alliances—for example, Microchip collaborates with utilities on quantum-safe firmware signing, while STMicroelectronics partners with smart-meter OEMs to co-design secure boot sequences. White-space innovators such as Tropic Square gain recognition through transparent, open silicon that allows independent inspection, a feature valued in defense and critical infrastructure. Concurrently, services firms like LevelBlue launch managed offerings that bundle PKI hosting, code-signing, and incident handling, broadening buyer choice beyond pure hardware. 

Competitive edge now hinges on three factors: 1) the ability to deliver quantum-resilient silicon without power or cost penalties, 2) turnkey compliance toolchains that accelerate certification cycles, and 3) ecosystem depth, including secure provisioning, lifecycle analytics, and cloud-based key orchestration. Vendors meeting these criteria capture disproportionate growth as embedded security market requirements expand from device launch to end-of-life support.

Embedded Security Industry Leaders

  1. Infineon Technologies AG

  2. NXP Semiconductors NV

  3. STMicroelectronics NV

  4. Microchip Technology Inc.

  5. Samsung Electronics Co. Ltd.

  6. *Disclaimer: Major Players sorted in no particular order
Embedded Security Market Concentration
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Recent Industry Developments

  • May 2025: Microchip Technology introduced MEC175xB embedded controllers featuring hardware post-quantum cryptography, aligned with CNSA 2.0 standards.
  • May 2025: Leidos acquired Kudu Dynamics for USD 300 million, extending AI-driven cyber capabilities for defense markets.
  • April 2025: Keysight Technologies rolled out a next-generation embedded security testbench that automates vulnerability discovery before production release.
  • March 2025: Stellantis committed EUR 5.6 billion (USD 6.1 billion) to South American operations, embedding security into Bio-Hybrid vehicle platforms.
  • March 2025: Tropic Square won dual awards at Embedded World 2025 for its auditable TROPIC01 secure chip.
  • March 2025: Infineon highlighted new microcontroller families optimized for embedded security during Embedded World 2025.

Table of Contents for Embedded Security Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Proliferation of IoT edge nodes in smart-home and industrial sectors
    • 4.2.2 EMVCo's contactless payment mandates for cards and POS
    • 4.2.3 Rapid electrification/ADAS driving high-integrity automotive ECUs
    • 4.2.4 Firmware-over-the-air (FOTA) update liabilities post-UN R155
    • 4.2.5 Post-quantum-crypto migration in long-life industrial controllers
  • 4.3 Market Restraints
    • 4.3.1 High ASP gap versus discrete MCUs in cost-sensitive IoT
    • 4.3.2 Fragmented standards across verticals (e.g., GlobalPlatform vs. TCG)
    • 4.3.3 Supply-chain "ghost foundry" risks limiting secure-element sourcing
    • 4.3.4 Skill-set shortage in secure-element firmware verification
  • 4.4 Industry Value Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Industry Attractiveness - Porter's Five Forces
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Bargaining Power of Suppliers
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Intensity of Competitive Rivalry
  • 4.8 Pricing Analysis
  • 4.9 Impact of Macroeconomic Factors on the Market
  • 4.10 Key Performance Indicators (KPIs)

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Component Type
    • 5.1.1 Hardware
    • 5.1.2 Software
    • 5.1.3 Services
  • 5.2 By Application
    • 5.2.1 Payment
    • 5.2.2 Authentication
    • 5.2.3 Content Protection
    • 5.2.4 Other Applications
  • 5.3 By End-User Industry
    • 5.3.1 Automotive
    • 5.3.2 Healthcare
    • 5.3.3 Consumer Electronics
    • 5.3.4 Telecommunications
    • 5.3.5 Aerospace and Defence
    • 5.3.6 Other End-Users
  • 5.4 By Deployment
    • 5.4.1 On-premise
    • 5.4.2 Cloud
  • 5.5 By Geography
    • 5.5.1 North America
    • 5.5.1.1 United States
    • 5.5.1.2 Canada
    • 5.5.1.3 Mexico
    • 5.5.2 South America
    • 5.5.2.1 Brazil
    • 5.5.2.2 Argentina
    • 5.5.2.3 Rest of South America
    • 5.5.3 Europe
    • 5.5.3.1 Germany
    • 5.5.3.2 United Kingdom
    • 5.5.3.3 France
    • 5.5.3.4 Italy
    • 5.5.3.5 Spain
    • 5.5.3.6 Russia
    • 5.5.3.7 Rest of Europe
    • 5.5.4 Asia-Pacific
    • 5.5.4.1 China
    • 5.5.4.2 Japan
    • 5.5.4.3 India
    • 5.5.4.4 South Korea
    • 5.5.4.5 Australia
    • 5.5.4.6 Rest of Asia-Pacific
    • 5.5.5 Middle East and Africa
    • 5.5.5.1 Middle East
    • 5.5.5.1.1 Saudi Arabia
    • 5.5.5.1.2 United Arab Emirates
    • 5.5.5.1.3 Turkey
    • 5.5.5.1.4 Rest of Middle East
    • 5.5.5.2 Africa
    • 5.5.5.2.1 South Africa
    • 5.5.5.2.2 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Infineon Technologies AG
    • 6.4.2 NXP Semiconductors NV
    • 6.4.3 STMicroelectronics NV
    • 6.4.4 Microchip Technology Inc.
    • 6.4.5 Samsung Electronics Co.
    • 6.4.6 Texas Instruments Inc.
    • 6.4.7 Renesas Electronics Corp.
    • 6.4.8 Qualcomm Inc. (QCA)
    • 6.4.9 Broadcom Inc.
    • 6.4.10 Lattice Semiconductor Corp.
    • 6.4.11 Synopsys Inc. (ARC-secure)
    • 6.4.12 Arm Ltd.
    • 6.4.13 Rambus Inc.
    • 6.4.14 Verimatrix SA (Inside Secure)
    • 6.4.15 Thales Group (Gemalto)
    • 6.4.16 G+D Mobile Security GmbH
    • 6.4.17 Idemia Group
    • 6.4.18 Karamba Security Ltd.
    • 6.4.19 Trillium Secure Inc.
    • 6.4.20 ESCRYPT GmbH (Bosch)
    • 6.4.21 Sectigo Ltd. (Icon Labs)
    • 6.4.22 Mocana Corp.
    • 6.4.23 Intellias Ltd.
    • 6.4.24 Winbond Electronics Corp.
    • 6.4.25 Nuvoton Technology Corp.
    • 6.4.26 IAR Systems AB

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-need Assessment
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Global Embedded Security Market Report Scope

Embedded system security is an approach to protecting software running on embedded systems from attack. It comprises hardware components with a minimal operating system and software provided to end-user industries such as automotive, healthcare, and consumer electronics.

The embedded security market is segmented by component type (hardware, software, and service), application (payment, authentication, content protection, and other applications), end user (automotive, healthcare, consumer electronics, telecommunications, aerospace & defense, and other end users), and geography (North America, Europe, Asia-Pacific, and Rest of the World). The market sizes and forecasts are provided in value (USD) for all the above segments.

By Component Type Hardware
Software
Services
By Application Payment
Authentication
Content Protection
Other Applications
By End-User Industry Automotive
Healthcare
Consumer Electronics
Telecommunications
Aerospace and Defence
Other End-Users
By Deployment On-premise
Cloud
By Geography North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Italy
Spain
Russia
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East
Africa South Africa
Rest of Africa
By Component Type
Hardware
Software
Services
By Application
Payment
Authentication
Content Protection
Other Applications
By End-User Industry
Automotive
Healthcare
Consumer Electronics
Telecommunications
Aerospace and Defence
Other End-Users
By Deployment
On-premise
Cloud
By Geography
North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Italy
Spain
Russia
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East
Africa South Africa
Rest of Africa
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Key Questions Answered in the Report

What is driving the current growth of the embedded security market?

Rapid IoT expansion, automotive cybersecurity mandates, and new regulations such as the EU Cyber Resilience Act are collectively pushing demand for hardware-rooted trust and lifecycle security services.

How large is the embedded security market size today?

The embedded security market size stands at USD 9.25 billion in 2025 and is projected to reach USD 15.06 billion by 2030.

Which component segment is growing fastest?

Services, covering audits, key management, and managed detection, are forecast to rise at 14.2% CAGR between 2025 and 2030 as firms outsource specialist skills.

Why is automotive the fastest-growing end-user industry?

Regulations such as UN R155, combined with electrification and ADAS complexity, require multilayered security architectures, pushing automotive demand to a 16.2% CAGR.

How will post-quantum cryptography influence embedded products?

Long-life devices in energy, transport, and defense already incorporate lattice-based algorithms; vendors that provide quantum-resilient silicon and agile key-rotation services will capture future market share.

What regions offer the highest growth potential?

South America leads in relative terms with a 13.3% CAGR through 2030, underpinned by automotive investment and 5G rollouts, while Asia Pacific remains the revenue leader.

Embedded Security Market Report Snapshots