Embedded security market seen topping $24 billion by 2035

Market Research Future says the global embedded security market will grow from an estimated $9.92 billion in 2025 to $24.18 billion by 2035, driven by regulation, automotive electrification and hardware-backed digital identity. The forecast highlights how compliance rules and rising device connectivity are pushing security deeper into chips, vehicles and IoT systems. Why it matters: - Embedded security is moving from a niche chip feature to a compliance requirement across connected products, vehicles and industrial systems. - The shift could reshape procurement for device makers, automakers and cloud-linked enterprises that now need hardware-backed protections at scale. - The market’s growth matters because security is becoming embedded at the silicon layer before devices reach consumers or fleets. What happened: - Market Research Future said the global embedded security market was valued at an estimated $9.92 billion in 2025. - The market is projected to rise to $10.86 billion in 2026 and reach $24.18 billion by 2035. - The forecast implies a 10.28% compound annual growth rate through 2035. - The report was published June 17, 2026. - The report covers applications including consumer electronics, automotive, industrial, healthcare and telecommunications. - A sample copy of the report is available online. - The full report description is also posted online. The details: - Hardware led the component mix with a 53.1% share in 2025, driven by demand for secure elements, trusted platform modules and hardware security modules. - Services posted the fastest projected growth, with a 12.34% CAGR through 2035, supported by managed provisioning and lifecycle firmware management. - Cloud-based deployment generated $6.24 billion in 2025 revenue, as enterprises scaled elastic hardware security module instances. - On-premises deployment is forecast to grow at an 8.76% CAGR, supported by data-localization rules in financial and government sectors. - Automotive held 34.7% of 2025 demand and remained the largest application segment. - Consumer electronics uses embedded security for biometric authentication, secure payments and personal data protection in smartphones, wearables and smart-home devices. - Healthcare is projected to grow at an 11.02% CAGR through 2035, driven by medical-device security and patient-data requirements. - Asia-Pacific held about 43.6% of 2025 revenue, supported by semiconductor manufacturing capacity in Taiwan, South Korea and mainland China. - Europe accounted for about 26% of global revenue, with the EU Cyber Resilience Act and UNECE Regulation 155 pushing adoption in automotive and industrial markets. - The Middle East and Africa region is projected to expand at a 12.44% CAGR through 2035. - North America remained a major market because of cybersecurity adoption, passkey use and eSIM provisioning activity. - The report lists Infineon Technologies, NXP Semiconductors, STMicroelectronics, Qualcomm, Microchip Technology, Samsung Electronics, Texas Instruments and Munich Re among the key companies. Between the lines: - Regulation is doing more than setting standards; it is turning embedded security into a mandatory product feature in some markets. - Automotive and connected-device growth are widening the attack surface, which boosts demand for secure boot, firmware signing and hardware root of trust technologies. - The report’s emphasis on passkeys, eSIMs and post-quantum cryptography suggests that security buying is shifting toward future-proofed hardware rather than software-only tools. - The analysis also points to a market where silicon vendors and security providers are competing on lifecycle management, telemetry and continuous monitoring, not just chips. What’s next: - Demand should rise as the EU Cyber Resilience Act and vehicle cybersecurity rules move deeper into procurement cycles. - The report expects broader adoption of PQC-capable secure elements as vendors prepare for post-quantum standards. - Embedded security providers are likely to push more managed services and Secure-Element-as-a-Service offerings as enterprises seek easier deployment. - Asia-Pacific is expected to keep leading revenue, while the Middle East and Africa may post the fastest growth through 2035. - More information is available through Market Research Future’s online report pages and sample materials.