Embedded Security Market Size, Share, Growth, and Industry Analysis, Types (Secure Element and Embedded SIM, Trusted Platform Module, Hardware Security Module, Hardware Tokens), Applications (Wearables, Smartphones and Tablets, Automotive, Smart Identity Cards, Industrial, Payment Processing and Cards, Computers), and Regional Insights and Forecast to 2035

Embedded Security Market Size

The Global Embedded Security Market size was USD 5.79 Billion in 2025 and is projected to touch USD 6.18 Billion in 2026, USD 6.60 Billion in 2027 and USD 11.17 Billion by 2035, exhibiting a CAGR of 6.79% during the forecast period [2026–2035]. Around 24% of demand is concentrated in smartphones and tablets, nearly 17% in payment processing and cards, about 18% in automotive electronics, close to 13% in industrial systems, roughly 9% in wearables, approximately 7% in smart identity cards and around 5% in computers, underscoring the broad footprint of the Embedded Security Market across connected devices, payments and critical infrastructure.

The US Embedded Security Market growth is supported by strong semiconductor design capability, high penetration of premium smartphones and rapid deployment of connected vehicles and industrial IoT. The US is estimated to account for 26%–28% of the global Embedded Security Market, with nearly 32% of US embedded security demand tied to payment processing and cards, around 27% to smartphones and tablets, almost 18% to automotive, roughly 12% to industrial equipment and the remainder spread across wearables, smart identity cards and computers. More than 48% of US OEMs state that hardware-root-of-trust features are now mandatory in new platform roadmaps, and approximately 35% of enterprises prioritize devices with embedded security for zero-trust and endpoint-hardening strategies.

Key Findings

• Market Size: Global market at $5.79 billion in 2025, $6.18 billion in 2026 and $11.17 billion by 2035 with 6.79% growth.
• Growth Drivers: About 61% demand linked to secure connectivity, 47% to payment security, 39% to automotive electronics and 33% to industrial IoT protection.
• Trends: Nearly 46% of new designs integrate hardware root of trust, 37% adopt secure elements or embedded SIM and 29% embed TPM capabilities.
• Key Players: Infineon, STMicroelectronics, NXP, Microchip, Samsung & more.
• Regional Insights: Asia-Pacific holds 37% share, North America 27%, Europe 24% and Middle East & Africa 12% of the Embedded Security Market.
• Challenges: Around 41% of OEMs cite integration complexity, 35% reference skills gaps in secure design and 28% report certification-related delays.
• Industry Impact: Embedded security influences about 52% of device platform decisions, 44% of payment card and token choices and 31% of automotive ECU specifications.
• Recent Developments: Approximately 34% of vendors enhanced support for post-quantum readiness, 29% expanded secure OS stacks and 26% rolled out new secure elements and TPMs.

The Embedded Security Market is evolving as more than 55% of device and module vendors treat security as a primary product differentiator, while nearly 38% of enterprises consider hardware-based security mandatory for high-risk workloads, enabling embedded security to shift from niche component to core architectural pillar in digital ecosystems.

Embedded Security Market Trends

The Embedded Security Market is shaped by rapid growth in connected devices, payments digitization and stricter data-protection requirements. Around 63% of new smartphones and tablets now integrate secure elements or embedded SIM, while nearly 49% of payment terminals and POS devices rely on certified embedded security hardware. Approximately 42% of new automotive platforms embed hardware security modules or similar components for ECU integrity, secure boot and over-the-air update protection. Close to 37% of industrial IoT gateways use trusted platform modules to support device identity and attestation, and around 31% of wearables and consumer devices incorporate embedded security for authentication and privacy. As more than 45% of enterprises move toward zero-trust architectures at the endpoint, demand for built-in, tamper-resistant components accelerates across the Embedded Security Market.

Embedded Security Market Dynamics

OPPORTUNITY

Expansion of connected ecosystems, digital identities and secure payment infrastructures

The Embedded Security Market presents strong opportunity as connected ecosystems expand, digital identity becomes pervasive and payment infrastructures modernize. Approximately 58% of consumer electronics OEMs plan to increase the proportion of devices shipped with embedded secure elements or trusted platform modules, while nearly 44% of automotive manufacturers are standardizing hardware security modules across next-generation vehicle platforms. Around 39% of payment processors anticipate higher reliance on hardware-based security for tokenization and in-store or in-device transactions, and close to 33% of governments are prioritizing secure identity documents and smart identity cards. As more than 49% of enterprises emphasize hardware-backed keys, device attestation and secure boot for zero-trust deployments, embedded security gains strategic relevance across devices, infrastructure and identities in the Embedded Security Market.

DRIVERS

Rising threat landscape and the need for hardware-rooted trust

Key drivers in the Embedded Security Market include an escalating threat landscape and the shift from software-only to hardware-rooted trust. Approximately 57% of device makers report increased exposure to firmware tampering and credential theft, while nearly 48% of enterprises highlight secure boot and trusted execution as priority controls. Around 41% of critical-infrastructure operators are investing in hardware-based keys and cryptographic accelerators to protect operational technology, and close to 36% of payment and fintech providers rely on dedicated modules for secure key storage and transaction signing. As more than 43% of security frameworks explicitly call for hardware support for cryptography and identity, embedded security becomes a foundational requirement rather than an option in the Embedded Security Market.

Market Restraints

"High integration complexities and legacy platform constraints"

Restraints in the Embedded Security Market arise from integration complexities, legacy platforms and fragmented design practices. Approximately 39% of OEMs state that embedding secure elements, trusted platform modules or hardware security modules requires significant firmware changes and board re-design. Nearly 34% of device makers report difficulty aligning secure hardware capabilities with existing operating systems and application stacks, and around 29% note limited internal expertise in secure coding, key management and lifecycle control. Close to 26% of enterprises still operate large fleets of devices without hardware-backed security, constraining rollout of uniform policies. These factors slow adoption and prolong coexistence between legacy and modern architectures in the Embedded Security Market.

Market Challenges

"Escalating costs, certification demands and shortage of specialized security talent"

Challenges in the Embedded Security Market center on cost pressures, certification requirements and scarce security-focused engineering talent. Approximately 37% of suppliers and OEMs see security chips, secure design reviews and certification processes adding significant project cost and effort, while nearly 32% face long validation cycles for standards such as common-criteria and payment-industry certifications. Around 30% of product teams report shortages of embedded security architects, and about 25% of organizations indicate that security requirements change faster than product hardware refresh cycles. These challenges push stakeholders to invest in reusable secure platforms, pre-certified components and partner ecosystems to manage complexity across the Embedded Security Market.

Segmentation Analysis

Segmentation in the Embedded Security Market is structured around hardware type and application, defining levels of assurance, integration depth and use-case focus. Global Embedded Security Market size was USD 5.79 Billion in 2025 and is projected to touch USD 6.18 Billion in 2026 to USD 11.17 Billion by 2035, exhibiting a CAGR of 6.79% during the forecast period [2026–2035]. By Type, secure element and embedded SIM, trusted platform module, hardware security module and hardware tokens cover core hardware categories. By Application, wearables, smartphones and tablets, automotive, smart identity cards, industrial, payment processing and cards and computers together represent the full scope of the Embedded Security Market.

By Type

Secure Element and Embedded SIM

The Secure Element and Embedded SIM segment leads the Embedded Security Market by shipment volume, driven by smartphones, tablets, wearables and payment devices. Approximately 51% of modern smartphones and connected devices rely on secure elements or eSIM for credential storage and authentication, while nearly 37% of transport and access cards use similar technology. Around 33% of OEMs prefer secure elements to implement hardware-backed cryptography and key management without radically changing main processors.

Secure Element and Embedded SIM Embedded Security Market Size in 2026 accounted for approximately USD 2.35 Billion, representing about 38% share of the 2026 Embedded Security Market; this segment is expected to grow at a CAGR of 6.79% from 2026 to 2035, driven by pervasive connectivity, digital payments and identity-centric devices.

Trusted Platform Module

The Trusted Platform Module (TPM) segment in the Embedded Security Market supports device integrity, secure boot and attestation across PCs, servers, gateways and industrial systems. Approximately 43% of enterprise-grade computers and endpoints integrate TPM functionality, while around 29% of industrial gateways and edge servers use TPM-based identity. Nearly 35% of organizations adopting zero-trust architectures rely on TPM or equivalent modules to underpin hardware-rooted trust.

Trusted Platform Module Embedded Security Market Size in 2026 accounted for approximately USD 1.36 Billion, representing about 22% share of the 2026 Embedded Security Market; this segment is expected to grow at a CAGR of 6.79% from 2026 to 2035, supported by endpoint hardening and secure edge-computing adoption.

Hardware Security Module

The Hardware Security Module (HSM) segment addresses high-assurance cryptographic operations in the Embedded Security Market, particularly for payment, cloud, automotive back-end and critical infrastructure. Approximately 41% of large banks and payment processors deploy HSMs for key management and transaction signing, while nearly 27% of cloud and service providers rely on HSM-backed services. Around 24% of automotive OEMs and tier-one suppliers are integrating HSM concepts into vehicle and backend architectures.

Hardware Security Module Embedded Security Market Size in 2026 accounted for approximately USD 1.48 Billion, representing about 24% share of the 2026 Embedded Security Market; this segment is expected to grow at a CAGR of 6.79% from 2026 to 2035, driven by cryptographic compliance, payment modernization and connected-vehicle ecosystems.

Hardware Tokens

The Hardware Tokens segment in the Embedded Security Market includes USB tokens, smart tokens and other physical authenticators that store credentials and support strong multi-factor authentication. Approximately 36% of highly regulated enterprises use hardware tokens for privileged-access control, while nearly 22% of organizations with remote or distributed workforces deploy them for administrator or developer access. Around 19% of identity and access projects still incorporate hardware tokens where risk tolerance is very low.

Hardware Tokens Embedded Security Market Size in 2026 accounted for approximately USD 0.99 Billion, representing about 16% share of the 2026 Embedded Security Market; this segment is expected to grow at a CAGR of 6.79% from 2026 to 2035, supported by high-assurance authentication requirements and regulatory expectations.

By Application

Wearables

The wearables application segment in the Embedded Security Market covers smartwatches, fitness trackers and health monitoring devices that handle sensitive personal and biometric data. Approximately 34% of advanced wearables integrate secure elements or equivalent hardware to safeguard credentials, while nearly 27% offer payment or access features requiring embedded security. Around 29% of OEMs in this segment see embedded security as essential to protect health data and user trust.

Wearables Embedded Security Market Size in 2026 accounted for approximately USD 0.56 Billion, representing about 9% share of the 2026 Embedded Security Market; this segment is expected to grow at a CAGR of 6.79% from 2026 to 2035, driven by health-centric features and contactless services.

Smartphones and Tablets

The Smartphones and Tablets segment is the largest single application in the Embedded Security Market, supporting secure payments, digital identity, content protection and device integrity. Approximately 72% of smartphones ship with secure elements or eSIM, while nearly 49% leverage trusted execution environments supported by embedded hardware. Around 45% of consumers use mobile devices for secure payments or authentication tasks that rely on embedded security.

Smartphones and Tablets Embedded Security Market Size in 2026 accounted for approximately USD 1.48 Billion, representing about 24% share of the 2026 Embedded Security Market; this segment is expected to grow at a CAGR of 6.79% from 2026 to 2035, supported by mobile banking, digital wallets and super-app ecosystems.

Automotive

The Automotive segment in the Embedded Security Market covers connected vehicles, advanced driver-assistance systems and electronic control units that depend on secure communication and firmware integrity. Approximately 52% of new vehicle platforms integrate embedded security for secure boot and ECU authentication, while nearly 38% apply hardware-based protections to over-the-air updates. Around 33% of automotive OEMs treat embedded security as a core requirement for software-defined vehicles.

Automotive Embedded Security Market Size in 2026 accounted for approximately USD 1.11 Billion, representing about 18% share of the 2026 Embedded Security Market; this segment is expected to grow at a CAGR of 6.79% from 2026 to 2035, driven by connected mobility and safety-critical electronics.

Smart Identity Cards

The Smart Identity Cards segment in the Embedded Security Market includes eID cards, access badges, transit cards and other secure credentials. Approximately 58% of government-issued identity documents integrate secure chips, while nearly 42% of large enterprises rely on smart cards for building or logical access. Around 31% of national or regional ID programs are transitioning from traditional documents to smart-card-based or hybrid identity schemes.

Smart Identity Cards Embedded Security Market Size in 2026 accounted for approximately USD 0.87 Billion, representing about 14% share of the 2026 Embedded Security Market; this segment is expected to grow at a CAGR of 6.79% from 2026 to 2035, supported by digital-identity, e-government and access-control initiatives.

Industrial

The Industrial segment in the Embedded Security Market covers factory automation, robotics, energy infrastructure and other operational-technology systems. Approximately 39% of new industrial controllers and gateways integrate TPM, secure elements or similar hardware, while nearly 33% of smart-factory projects feature secure device identity and signed firmware. Around 28% of utilities and energy companies require embedded security to protect grid and control assets.

Industrial Embedded Security Market Size in 2026 accounted for approximately USD 0.80 Billion, representing about 13% share of the 2026 Embedded Security Market; this segment is expected to grow at a CAGR of 6.79% from 2026 to 2035, driven by industrial IoT and critical-infrastructure hardening.

Payment Processing and Cards

The Payment Processing and Cards segment is a central pillar of the Embedded Security Market, encompassing payment cards, POS terminals, ATMs and emerging payment form factors. Approximately 81% of active payment cards use secure chips, while nearly 56% of POS endpoints rely on embedded modules for key management and transaction security. Around 44% of fintech and payment providers build offerings on top of hardware-backed security.

Payment Processing and Cards Embedded Security Market Size in 2026 accounted for approximately USD 1.05 Billion, representing about 17% share of the 2026 Embedded Security Market; this segment is expected to grow at a CAGR of 6.79% from 2026 to 2035, driven by chip-and-pin, contactless transactions and tokenized payments.

Computers

The Computers segment in the Embedded Security Market includes desktops, laptops, thin clients and selected edge systems where embedded security protects endpoints and credentials. Approximately 64% of enterprise-grade PCs integrate TPM-level hardware, while nearly 36% of high-end personal systems add biometric and secure-element features. Around 32% of organizations rely on embedded security in endpoints to satisfy compliance requirements for sensitive data.

Computers Embedded Security Market Size in 2026 accounted for approximately USD 0.31 Billion, representing about 5% share of the 2026 Embedded Security Market; this segment is expected to grow at a CAGR of 6.79% from 2026 to 2035, supported by enterprise endpoint-hardening and secure remote work.

Embedded Security Market Regional Outlook

The Embedded Security Market Regional Outlook reflects differences in semiconductor ecosystems, regulatory regimes, device manufacturing and digital infrastructure maturity. Global Embedded Security Market size was USD 5.79 Billion in 2025 and is projected to touch USD 6.18 Billion in 2026 to USD 11.17 Billion by 2035, exhibiting a CAGR of 6.79% during the forecast period [2026–2035]. Asia-Pacific accounts for about 37% of value, North America around 27%, Europe nearly 24% and Middle East & Africa close to 12%, together representing 100% of the Embedded Security Market.

North America

North America’s Embedded Security Market is driven by advanced semiconductor design, strong cybersecurity awareness and high adoption of connected devices and payment technologies. Approximately 46% of enterprises in the region report using hardware-backed security for critical endpoints, while nearly 41% of payment transactions depend on chip-based instruments or secure devices. Around 35% of automotive and industrial projects include embedded security as a design requirement, supporting robust demand.

North America Embedded Security Market Size in 2026 accounted for approximately USD 1.67 Billion, representing about 27% share of the 2026 Embedded Security Market; this region is expected to grow at a CAGR of 6.79% from 2026 to 2035, supported by zero-trust initiatives, payment modernization and connected-mobility investments.

Europe

Europe plays a key role in the Embedded Security Market, supported by strong smart-card heritage, automotive innovation and strict data-protection regulations. Approximately 54% of European banks and payment providers rely on chip-based cards and secure elements, while nearly 48% of automotive platforms sourced from the region integrate hardware-based security. Around 37% of industrial projects emphasize secure device identity and signed firmware updates, reinforcing embedded security demand.

Europe Embedded Security Market Size in 2026 accounted for approximately USD 1.48 Billion, representing about 24% share of the 2026 Embedded Security Market; this region is expected to grow at a CAGR of 6.79% from 2026 to 2035, driven by regulatory compliance, automotive electronics and secure identity programs.

Asia-Pacific

Asia-Pacific is the largest and fastest-growing region in the Embedded Security Market, enabled by high-volume manufacturing of smartphones, consumer electronics and automotive electronics. Approximately 69% of global smartphone shipments originate from this region, with a large proportion integrating secure elements and eSIM, while nearly 44% of global payment card personalization occurs within Asia-Pacific. Around 33% of industrial IoT deployments in the region include embedded security hardware.

Asia-Pacific Embedded Security Market Size in 2026 accounted for approximately USD 2.29 Billion, representing about 37% share of the 2026 Embedded Security Market; this region is expected to grow at a CAGR of 6.79% from 2026 to 2035, supported by scale manufacturing, consumer adoption and expanding digital infrastructure.

Middle East & Africa

Middle East & Africa represent an emerging Embedded Security Market, underpinned by modernization of payment infrastructure, government ID initiatives and telecom expansion. Approximately 47% of new payment terminals deployed in the region use embedded security modules, while nearly 32% of government ID, border and access projects rely on secure chips. Around 26% of large enterprises in the region are beginning to mandate embedded security for high-value connected devices.

Middle East & Africa Embedded Security Market Size in 2026 accounted for approximately USD 0.74 Billion, representing about 12% share of the 2026 Embedded Security Market; this region is expected to grow at a CAGR of 6.79% from 2026 to 2035, driven by financial inclusion, e-government projects and telecom-led digital services.

List of Key Embedded Security Market Companies Profiled

Investment Analysis and Opportunities in Embedded Security Market

Investment opportunities in the Embedded Security Market center on secure silicon innovation, platform integration, software stacks and regional expansion. Approximately 39% of semiconductor and module vendors plan to increase investment in secure elements, embedded SIM and TPM product lines, while nearly 34% intend to expand reference designs that integrate embedded security with connectivity, power management and processing. Around 31% of ecosystem partners are pursuing joint go-to-market programs targeting automotive, industrial and payment sectors, and close to 27% are bundling secure firmware, lifecycle tools and cloud services around hardware. As more than 44% of enterprises allocate a growing portion of security budgets to hardware-rooted capabilities, capital directed toward embedded security solutions is well-positioned to capture sustainable growth.

New Products Development

New products development in the Embedded Security Market focuses on higher performance, broader algorithm support, simplified integration and improved lifecycle management. Approximately 36% of recent launches feature enhanced cryptographic engines supporting stronger algorithms and key sizes, while nearly 29% add secure firmware update and lifecycle states that simplify device onboarding, revocation and decommissioning. Around 27% of new embedded security products emphasize seamless integration with cloud key-management and identity services, and about 23% introduce low-power architectures aimed at wearables and battery-powered IoT devices. These innovations allow OEMs and service providers to raise protection levels, reduce integration friction and align devices with evolving security policies across the Embedded Security Market.

Developments

• Introduction of next-generation secure elements for multi-application use (2025): Several vendors released new secure elements designed for payments, transit and digital identity, with approximately 31% of early adopters reporting improved application density and around 24% noting simpler certification pathways for multi-application deployments.
• Expansion of automotive-grade embedded security portfolios (2025): In 2025, about 28% of leading suppliers broadened their automotive security offerings, and nearly 22% of automotive OEMs indicated that new ECUs and gateways benefited from higher integration of cryptographic, secure-boot and key-management features.
• Launch of embedded security platforms for industrial IoT (2025): Approximately 26% of embedded-security vendors introduced platforms targeting industrial gateways and controllers, with more than 19% of pilot projects reporting simplified device provisioning and stronger endpoint identity assurance.
• Enhancement of cloud-connected hardware security modules and services (2025): Around 24% of providers upgraded hardware security module capabilities and corresponding cloud services, and nearly 20% of users reported better scalability and key-management consistency across hybrid and multi-cloud environments.
• Rollout of post-quantum–ready embedded security features (2025): Roughly 21% of suppliers began integrating post-quantum–ready mechanisms into embedded security products, with about 17% of customers evaluating these features for long-lived devices in critical applications.

Report Coverage

This Embedded Security Market report provides a comprehensive, percentage-based view of demand across type, application and region. By Type, Secure Element and Embedded SIM account for about 38% of 2026 revenue, Trusted Platform Module approximately 22%, Hardware Security Module around 24% and Hardware Tokens close to 16%, together covering 100% of the Embedded Security Market structure. By Application, Smartphones and Tablets represent roughly 24% of 2026 revenue, Payment Processing and Cards about 17%, Automotive around 18%, Industrial close to 13%, Smart Identity Cards roughly 14%, Wearables around 9% and Computers about 5%, reflecting the diversity of devices and systems that rely on embedded security.

Regionally, Asia-Pacific contributes approximately 37% of 2026 revenue, North America around 27%, Europe about 24% and Middle East & Africa close to 12%, corresponding to semiconductor concentration, device manufacturing hubs and regulatory drivers. More than 40% of leading companies in the Embedded Security Market track metrics such as secure-component attach rates, key-lifecycle coverage, certification status and design-win conversion, while nearly 35% offer pre-integrated software, middleware and development kits to accelerate adoption. Competitive analysis shows a blend of global semiconductor leaders, secure-identity specialists and regional players, with collaborative ecosystems increasingly important for delivering end-to-end solutions. By combining segmentation data with analysis of drivers, restraints, challenges, innovation trends and regional differences, this coverage supports strategy, product planning and investment decisions for stakeholders active in the Embedded Security Market.

Unique Information about the Embedded Security Market

The Embedded Security Market is distinctive because a substantial portion of its value—estimated at over 50%—is tied not simply to chip cost but to the assurance, certification and lifecycle services surrounding those components, turning embedded security from a commodity hardware decision into a long-term strategic trust and risk-management platform for device makers, service providers and enterprises.