The global embedded security market was valued at USD 7.40 billion in 2023 and is expected to reach USD 11.93 billion by 2030, expanding at a CAGR of 7.6% from 2024 to 2030. The market centers on delivering security solutions for embedded systems—specialized computing platforms engineered to perform dedicated functions within larger electronic devices. These systems are critical across multiple industries, including automotive, healthcare, industrial automation, and consumer electronics, where secure data processing and device integrity are essential.

Key Market Trends & Insights

North America accounted for the largest share of the embedded security market in 2023, representing approximately 37% of total revenue. The region’s dominance is supported by early adoption of advanced technologies, strong regulatory frameworks, and the presence of major technology providers. Meanwhile, the Asia Pacific region is projected to witness robust growth, registering a CAGR of 9.2% from 2024 to 2030, driven by rapid industrialization, expanding IoT deployments, and increasing investments in smart infrastructure.

From a component perspective, the hardware segment led the market with a share exceeding 46% in 2023, reflecting the importance of secure chips, microcontrollers, and hardware-based encryption in embedded environments. By security type, the payment segment held a market share of 45% in 2023 and is anticipated to continue its dominance through 2030, supported by the growing adoption of digital payments and secure transaction technologies. In terms of end use, the automotive segment accounted for over 27% of the market in 2023 and is expected to remain the leading application area, driven by connected vehicles, digital keys, and advanced driver assistance systems.

Market Size & Forecast

• 2023 Market Size: USD 7.40 Billion
• 2030 Projected Market Size: USD 11.93 Billion
• CAGR (2024–2030): 7.6%
• Largest Regional Market (2023): North America

The rapid proliferation of IoT devices, connected vehicles, industrial control systems, and smart medical devices has significantly increased the demand for robust embedded security solutions. Key growth drivers include the rising frequency and sophistication of cyber-attacks, stringent regulatory and compliance requirements, and continuous technological advancements. Innovations such as artificial intelligence and machine learning are improving threat detection and response capabilities, enabling real-time monitoring and proactive risk mitigation. As connectivity expands across industries, the importance of embedded security continues to intensify.

The increasing incidence of cyber-attacks targeting embedded systems—particularly IoT devices—has further amplified market demand. Embedded systems are integral to critical infrastructure, healthcare equipment, consumer electronics, and industrial machinery, making them attractive targets for cybercriminals. Vulnerabilities in these systems can result in unauthorized access, data breaches, device manipulation, and large-scale incidents such as distributed denial-of-service (DDoS) attacks. The growing attack surface created by billions of interconnected devices underscores the need for comprehensive, built-in security mechanisms.

To address these challenges, the market is increasingly adopting advanced security technologies. AI and machine learning are used to analyze behavioral patterns, detect anomalies, and prevent threats in real time. Blockchain technology is gaining traction, particularly in IoT ecosystems, by enabling decentralized, tamper-resistant data integrity and secure transactions. In parallel, zero trust architecture is being implemented to eliminate implicit trust within networks, enforcing continuous verification of every device and user. These approaches collectively enhance resilience against evolving cyber threats and strengthen embedded system security.

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Key Embedded Security Company Insights

Major players operating in the embedded security market include Idemia Group, Infineon Technologies AG, Intellias Ltd., Karamba Security Ltd., McAfee, LLC, Microchip Technology Inc., NXP Semiconductors, Qualcomm Technologies, Rambus Incorporated, Renesas Electronics, RVL, Samsung Electronics Co., Sirin Software, STMicroelectronics N.V., and Texas Instruments Inc. These companies collectively account for a significant share of the market and play a central role in shaping industry trends.

Leading market participants are actively pursuing strategies such as product innovation, partnerships, collaborations, and strategic agreements to strengthen their competitive positioning. For instance, in July 2024, NXP advanced the adoption of digital car keys by securing certification from the Car Connectivity Consortium (CCC), validating the security and interoperability of its solutions. In March 2024, IDEMIA Secure Transactions partnered with Qualcomm to enhance secure offline Central Bank Digital Currency (CBDC) payments, focusing on reliable and secure transactions without internet connectivity. Earlier, in September 2023, STMicroelectronics launched a new secure microcontroller designed to enhance IoT device protection through advanced encryption and authentication features.

Conclusion

In conclusion, the embedded security market is positioned for steady growth, driven by the expanding adoption of connected devices, increasing cyber threats, and stringent security requirements across industries. With strong demand from automotive, payment, and IoT applications, along with rapid technological advancements in AI, blockchain, and zero trust architectures, embedded security has become a critical foundation for digital ecosystems. As connectivity continues to scale globally, sustained innovation and strategic collaborations will be essential for market players to address evolving security challenges and capitalize on emerging opportunities through 2030.

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