The global embedded secure element market was valued at USD 313.2Million in 2019 and is projected to reach USD 667.9Million by 2027, expanding at a CAGR of 10.1% during the forecast period. Embedded computing systems are commonly used in a variety of applications, including home applications, office automation, banking & financial institutions, security, automotive, protection, personal, healthcare, and other sectors. The demand for embedded computing is driven by the increase in penetration of smartphones and wearable and surge in the online payments.
An embedded secure element (eSE) is a tamper-proof chip, which is available in different sizes and designs. These chips are embedded in mobile devices such as smartphones, and they ensure that the data is stored in a safe place and information is shared with authorized applications and people only. Smartphones, laptops, tablets, and other devices use embedded secure elements. The chip stores and processes information such as PIN codes, passwords, fingerprints, and payment information. Restricted access to the chip ensures secure strong protection to the element. Furthermore, no program needs to be installed on to it and only trusted applications and devices have read or write access to the chip. Embedded secure element is designed to counter many known attacks, especially side-channel attacks. Factors such as rise in the need to combat counterfeiting activities, growth in the demand for IoT devices, increase in penetration of smartphones and wearable, and surge in the online payments are expected to drive the market during the forecast period.
Account counterfeiting is a form of consumer fraud, which is done with the intent of stealing, destroying, or replacing original or illegal transactions. Presently, increase in the use of online transactions increases counterfeiting activities. Counterfeit money is the imitation of currency produced without a legal sanction of the government, usually in a deliberate attempt to imitate the legal currency, thus deceiving its recipients. Rising fraudulent activities in emerging economies is projected to fuel the market in the near future to protect online access.
Rising demand for IoT services, increasing need for digitalization, and growing penetration of communication and networking technologies propel the demand for embedded secure element. Advanced principal technologies and proliferation of devices fuel the adoption of IoT technologies. Industrial automation uses control systems, including robots and Internet of Things (IoT) to manage various machineries and processes. These robots and IoT technology are based on embedded computers to offer high accuracy, precision, and enhanced performance of manufacturing processes.
Increase in the use of smartphones and wearables is boosting the growth of various industries globally. Embedded secure elements are used in mobiles, tablets, and other payment devices. Additionally, increasing GDP is boosting the demand for sustainable products. The use of embedded secure elements in the smart wearable devices sector is growing due to changing lifestyle, which in turn, is boosting the market.
Embedded secure elements are playing an important role in the automotive industry. These systems are used in ADAS technology incorporated in automobile cards. Increase in the demand for online transactions owing to growing awareness about the depleting state of the environment fuels the embedded secure element market.
Based on types, the embedded secure element market is segmented into chip-scale package (CSP) and packages and surface mounted device (SMD) packages. The chip-scale package (CSP) packages segment accounts for a major share of the market; however, the surface mounted device (SMD) packages segment is anticipated to expand at a high CAGR during the forecast period. Rise in the use of CSP packages in the electronics industry due to their many benefits is propelling their adoption. Size reduction of packages is one of their biggest benefits. Size reduction is possible due to the ball grid array design of the package, which increases the number of interconnects. Another advantage of CSP packages is self-alignment characteristics and the lack of bent leads, which further reduces the manufacturing costs, thus driving segment growth.
In terms of applications, the embedded secure element market is classified as mobile phones and wearables, automotive, payment and banking, pay TV, and others. The mobile phone and wearable segment accounts for a major share of the market; however, the payment and banking segment is anticipated to expand at a high CAGR during the forecast period, as embedded secure elements help secure data while making payments/Internet banking transactions. Growth of the mobile phone and wearable segment is attributed to the increasing in the demand for mobile payments where smartphone OEM mobile wallet programs are rising across the globe. Wearables are convenient forms of payment and mass transit.
In terms of regions, the embedded secure element market is divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific is expected to account for a large share of the market, followed by Europe. The market in North America is projected to expand at a substantial CAGR during the forecast period. Developments in the automotive industry and rapid growth of the electronic instruments manufacturing industry are projected to increase the demand for embedded secure element in various Asia Pacific countries. Moreover, investments in automotive manufacturing projects and electronic devices in various countries are expected to drive the market in the region during the forecast period. Developing countries such as China and India are increasingly investing in the automobile and electronics industries, which in turn, is expected to propel the market. Investments in these regions are estimated to follow a linear growth trend during the forecast period. The market in Europe is expected to grow at a significant pace due to increasing focus on research & development of technology and the promotion of and investments in electronic devices and technology manufacturing. Low fuel prices and interest rates on consumer loans in the region are projected to increase the demand for electronic devices, automotive, and heavy equipment. This, in turn, fuels the need for embedded secure element for designing smart devices. Conversely, adverse effects of pollution have led to the changes in government regulations and enforcements of rigid rules on several manufacturing units. Increasing labor costs, rising inflation rate, and political instability are hampering the market in the region.
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According to this Growth Market Reports’ report, the market from embedded secure element is likely to register a CAGR of 10.1% during forecast period 2020-2027, with an anticipated valuation of USD667.9 million by the end of the 2027.
In addition to market size (in USD Million), company market share (in % for base year 2019), other data such macro-economic factors and COVID-19 impact on the value chain are also available in the final report.
The applications in the global embedded secure element market include mobile phones and wearables, automotive, payment and banking, pay TV, and others.
Factors such as competitive strength and market positioning are key areas considered while selecting top companies to be profiled.
The demand for embedded secure elements is expected to continue to increase over the forecast period, taking into account rise in need to address counterfeiting activities, growth in demand for IoT devices, increase in penetration of smartphones and wearable, and surge in the online payments is expected to drive the market growth.
The market is expected to witness a decrease of over 3% between 2019 and 2020 owing to the adverse impact of COVID-19 pandemic on the embedded secure element market.
The base year considered for the global embedded secure element market report is 2019. The complete analysis period is 2017 to 2027, wherein, 2017 & 2018 are the historic years and the forecast is provided from 2020 to 2027.
Major Manufactures include Thales Group, NXP Semiconductors, and STMicroelectronics.
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