The global crypto authentication ICs market is expected to reach USD 1,315.8 million in 2024. Demand for crypto authentication ICs is projected to rise at an astronomical CAGR of 7.5% from 2024 to 2034. Further, the crypto authentication ICs market analysis forecasts the market to surge to USD 2,705.8 million by the end of the year 2034.
In an increasingly digitized world, crypto authentication ICs are the enablers for securing connected devices and data from unauthorized access, counterfeiting, and cyberattacks through robust hardware-based encryption and secure key storage. Authentication ICs are extremely important for an IoT ecosystem, automotive security, consumer electronics, and industrial automation since they ensure data integrity and authenticity.
They enable the creation of unique device identities and secure cryptographic operations, boosting end-to-end security of connected applications. By limiting the potential of data breaches and improving overall trust in the systems, crypto authentication ICs are critical for most cybersecurity regulations and protecting critical sectors from sensitive information loss.
Global Crypto Authentication ICs Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 1,232.6 million |
| Estimated Size, 2024 | USD 1,315.8 million |
| Projected Size, 2034 | USD 2,705.8 million |
| Value-based CAGR (2024 to 2034) | 7.5% |
Impressive security has been provided by crypto authentication ICs-they also have hardware encryption, secure key storage, and tamper resistance. These ICs use crypto algorithms such as AES, RSA, and ECC to exchange data securely. They also allow secure device authentication, a secure boot, and data integrity checks. I²C, SPI, and USB interfaces make them easy to integrate into a wide array of systems.
Advanced functions like mutual authentication and secure provisioning ensure that they are ideal for ubiquitous use over IoT, automotive and industrial applications. Low power consumption, small form factors, and design to support public key infrastructure (PKI) integrate them into modern pervasive connected ecosystems.
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Rising Cybersecurity Threats Create Demand for Crypto Authentication ICs
Most important drivers of the crypto authentication ICs market are the increasing cyber threats. In 2023, costs from cybercrime will cross the USD 8 trillion mark worldwide and will see an approximation of 15% growth every year. Business continues to become increasingly vulnerable to attacks through ransomware, phishing, and data breaches.
Many, high-profile breaches like the Colonial Pipeline ransomware incident have shown how wide-ranging the attack could be in these systems. Cryptographic Authentication ICs are hardware-based security methods that are challenging to originate because they are more advanced than software-only solutions.
These ICs secure sensitive data through the encryption of communication and verification of devices' identities. The IoT and automotive industries are heavily impacted since connected devices and vehicles frequently attract attacks from hackers.
Unauthorized access in IoT ecosystems could lead to disruption in operations, privacy violations and damage to reputation. Crypto authentication ICs guarantee the necessary authentication of devices within their ecosystems, maintenance of data integrity and allow the secure boot process.
All the governments and industry legislation at present encourage rigorous disquisition into privacy laws like the General Data Protection Regulation in Europe and California Consumer Privacy Act in the United States.
Implementing these laws is nothing without security; hence, the demand is further pumped for crypto authentication ICs. There have come companies like Infineon and Microchip Technology which are coming forward with advanced alternatives to tackle the regulatory and security challenges of institutions across the globe.
Expansion in Automotive Security Serves as a Market Driver for the Advanced ICs
The fusion of connected autonomous vehicles enlarges the scope of automotive security and the burgeoning need for crypto authentication ICs. This IC enables robust solutions for secure communications, data integrity, and system authentication to safeguard from cyber threats. As of 2023, it was reported that the global connected car market was approximately USD 60 billion, and continued growth will be seen as telematics, infotainment, and V2X technologies evolve.
Currently, vehicles also support over-the-air software upgrades and remote diagnostics; thus, such potential updates are targets for hackers. The crypto authentication IC secures over-the-air processes because it performs mutual authentication between the car and the server. For example, the NXP Secure Element technology guarantees encrypted communication and protection of data aboard connected cars.
Autonomous vehicles would also be prompting more measures in security. These real-time sensors, cameras, and external networks provide data that helps in directing and deciding on these vehicles. They will often be manipulated with the help of crypto authentication ICs from the source all through to their destination.
The government and regulatory bodies are putting in place stiffer security standards, such as UNECE WP.29 regulations concerning cybersecurity in vehicles. This makes it all the more mandatory for automakers to adopt powerful security solutions. Adding to that is the increasing tendency among consumers to demand secure, reliable vehicles, thus making automotive security a big driver for the market of crypto authentication ICs.
Integration Complexities Might Act as a Challenge in the Market
Integration of crypto authentication ICs into the existing systems has become a big market challenge with the technical operational barriers. Most companies have legacy systems which have not been designed for the secure hardware.
Thus, deploying crypto authentication ICs would require modification of hardware and software so that it is compatible, and this needs highly skilled personnel, and the challenge becomes more compounded for small and mid-sized businesses (SMBs) where trained manpower is a serious limitation. For example, for applications like IoT, these should be installed after understanding cryptographic protocols and specific communication interfaces like I²C or SPI.
In addition to that, there is increasing complexity regarding the compatibility of such systems with the new IoT and cloud security standards. Every application ranging from automotive to industrial automation and payment systems is highly customized, which is meant to keep longer timelines for deployment.
An example is the establishment of secure key storage for multi-functional devices where connected vehicles might involve very complicated procedures that require skills and huge infrastructures to do so.
All this adds to the external dependence on foreign solution providers, thus further increasing costs. Research has indicated that deployment time for implementation delays and integration difficulties could be extended by 30-40% further injury to operational efficiency. Moreover, in developing economies, where they have little access to technical resources, the barriers to adoption are even higher.
The crypto authentication ICs industry showcased a CAGR of 6.7% during the period between 2019 and 2023. The industry reached a value of USD 1,232.6 million in 2023 from USD 950.2 million in 2019.
It is anticipated that worldwide Crypto Authentication IC sales would maintain a steady growth trend from 2019 to 2023 as increased secure systems requirements for different industry sectors including IoT, automotive, and secure payments.
During this period, demand increased further from such increasing security concerns and a rise in the number of connected devices. The phenomenon was primarily seen in the automotive sector where secure communication ICs have been adopted as connected cars and autonomous vehicles have taken hold.
On the other hand, the market is estimated to grow at a CAGR of 7.5% during the forecasted period between 2024 and 2034. The market is expected to grow swiftly as it has the potential to reach a value of USD 2,605.8 million in 2034 from USD 1,290.8 million in 2024.
From 2024 to 2034, this is going to escalate as new dependency arises on connected systems plus increased regulation over data protection. More industries, like healthcare, supply chain, and smart manufacturing, would see an entry into the Crypto Authentication IC market in the near future.
There is to be pressure for secure authentication as 5G evolves and edge computing takes shape, while at the same time these years are going to be painting a greater push toward more sophisticated multifunctional solutions that touch upon many more applications.
Apart from innovative high-quality solutions in secure-authentication and cryptographic functions, the Tier-1 vendors in the crypto authentication ICs market are also major industry trendsetters. Major shares of the market in this division are won by their extensive R&D, their global presence and their advanced product offerings. Infineon Technologies and NXP Semiconductors are important part of this tier; it offers comprehensive secure authentication products that serve segments such as IoT, automotive, and payment systems.
Popular products, such as OPTIGA Trust by Infineon and the A1000 series from NXP, have been deployed to use secure communication and authentication across devices. Supported through several strong OEM partnerships, these firms gain further access. These vendors hold around 35%-40% market share.
Tier-2 vendors are important in the market but usually have a more specialized product portfolio and smaller market share than Tier-1 champions. Companies such as STMicroelectronics, Maxim Integrated, and Microchip Technology fall into this tier having around 30%-35% share in the market and provide competing Crypto Authentication ICs that are usually aimed at specialized applications or industries.
STMicroelectronics' STM32 and Maxim's MAXQ demonstrate that the best-in-class security features, including tamper-resistance designs and low power consumptions, allowing it for IoT and automotive solutions.
The Tier-3 suppliers usually possess limited presence across the global Crypto Authentication Integrated Circuits market. They must be serving through either such small-scale cost-affordable solutions that cater to smaller enterprises or relatively less security-critical applications, concentrating solely on regional markets. These include companies such as IDEMIA, Giesecke+Devrient, or Beijing Watchdata.
The product offerings have typically been more restricted relative to Tier-1 or Tier-2 vendors, although they play a very prominent role as far as particular industries like financial services, access control, and identity verification are concerned. For example, IDEMIA is largely focused on providing biometric security ICs.
These are primarily used for developing identity authentication solutions. Most Tier-3 vendors offer cheaper solutions compared to Tier-1 and Tier-2 vendors but, lack the complete support infrastructure and supply chain of these higher-tier companies worldwide. These vendors around 25%-30% global market share.
The section below includes the industry analysis of crypto authentication ICs market over the countries in North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe and Middle East & Africa. The analysis describes the country wise analysis that are expected to grow at a high CAGR.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 7.8% |
| KSA | 6.5% |
| Germany | 7.2% |
| India | 9.7% |
| China | 8.8% |
Cryptographic Authentication ICs market in India is largely driven by numerous factors. One of which is the fact that there is clearly an upsurge of IoT adoption happening across the country. India is expected to have more than 1.3 billion connected devices by 2025. Integrated systems increase the demand for secure authentication solutions to protect sensitive data.
Digital India Targets are heavily being invested in through the government, aimed at necessary boosting to cybersecurity and digital payments because of initiatives such as Digital India. A good example is Indian government's allocation of USD 810 million to digital safety in the 2023 budget as part of measures expected to enhance secure use of authentication technologies.
Apart from all of that, the fast-expanding automotive and fintech sectors in India are creating a voracious demand for Crypto Authentication ICs. As the automotive industry now transitions towards connected cars and as the fintech industry is witnessing a rapid increase in mobile payment, it is now of utmost necessity to adopt secure authentication solutions.
Major investments are being made towards India by key industry participants such as Qualcomm and NXP Semiconductors, making it an attractive center for innovators to develop cutting-edge technologies in security, which is instrumental in the growth of the Crypto Authentication ICs. In combination with favorable spending from the government and regulatory frameworks, India has emerged as an important market for Crypto Authentication ICs.
According to reports, it has been found that China's growth in the Crypto Authentication ICs market has mainly been on account of all the huge investments it made in cybersecurity, IoT, as well as digital transformation. The Chinese government has spent billions of dollars on developing secure and trusted digital infrastructures focusing primarily on technology self-reliance.
The direction of investment in cybersecurity and core technology development, including secure hardware solutions such as Crypto Authentication ICs, is made clear in the 14th Five-Year Plan (2021 to 2025).
Advancements in smart cities, connected devices, and IoT applications would drive much more demand for secure authentication technologies as more IoT devices proliferate. The highest number of installation timing in IoT will be in China, with a projected number of over 5 billion IoT devices expected by 2025. Hence the requirement for the secure cryptographic solution would be massive.
The Chinese government has been spending more than USD 2 billion annually on various cybersecurity initiatives since 2020, targeting critical areas such as finance and smart manufacturing. This push also allows local vendors to grow domestically and encourages innovation and demand for advanced Crypto Authentication ICs.
The USA Crypto Authentication ICs market is experiencing an upsurge due to the growing demand for secure IoT devices with increasing threats of cybersecurity and investments by the government in advanced technologies. Such a trend is expected to continue until at least 2024 since cybersecurity spending is predicted to exceed USD 200 billion in that year.
This is in tandem with the rigorous data protection efforts of businesses and the government. As of 2022, the Cybersecurity and Infrastructure Security Agency (CISA) expanded its budget to promote secure communication and critical infrastructure device authentication. Given the advent of more connected devices, the demand for Crypto Authentication ICs across the automotive, healthcare, finance, and a host of other industries continues to grow rapidly.
Furthermore, the whole demand in the region will benefit from the deployment of 5G networks and edge computing that will require advanced security solutions. NIST keeps promoting secure cryptographic standards that tend to affect the market for authentication solutions. In return, this has led companies like Infineon Technologies and NXP Semiconductors to invest greatly in production and R&D within the US to fuel further growth within the market.
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| Product Type | Single-Function ICs |
|---|---|
| Value Share (2034) | 59.1% |
Single-function ICs are leading in the dynamic market of Crypto Authentication ICs because of their specialized, efficient, and cost-effective nature. These ICs are proficient in one-things such as secure key storage and encryption.
Therefore they are perfect for the fields that require secure, dedicated security, for example; Authentication and encryption by NXP A1000 and Infineon’s OPTIGA Trust ICs are top such examples giving incredibly high performance at very low power requiring and limited footprints. Thus these ICs can serve potential applications like IoT devices, smart cards, and even mobile payments.
Governments and businesses are investing heavily in secure technologies, contributing to the growth of single-function ICs. For instance, the USA government allocated USD 1.5 billion in 2023 for cybersecurity initiatives, including securing IoT infrastructure.
| End-Use | Consumer Electronics |
|---|---|
| Value Share (2034) | 29.5% |
Consumer electronics lead the Crypto Authentication ICs market due to the growing demand for secure transactions and data protection in devices like smartphones, smartwatches, and laptops. As of 2023, over 6 billion smartphones are in use globally, with a significant shift toward mobile payments and biometric authentication. The rise in mobile payment volumes, expected to exceed USD 5 trillion by 2024, drives demand for secure, cost-effective solutions such as Crypto Authentication ICs to protect user data.
Governments and private sector investments also support this trend. The USA government allocated USD 1.9 billion in cybersecurity funding for 2023, promoting the integration of advanced security features in consumer devices. Companies like Qualcomm, NXP, and Samsung are investing heavily in secure solutions to meet this growing need, with NXP focusing on providing secure elements for mobile payments.
In August 2024, Microchip Technology has added the ECC20x and SHA10x families of secure authentication ICs to the TrustFLEX platform. ECC20x and SHA10x ICs are hardware-based, secure storage devices that hide secret keys from unauthorized attacks. As part of the TrustFLEX platform, ECC204, SHA104 and SHA105 ICs are pre-configured with use cases, customizable cryptographic keys and code examples to speed up development.
In September 2024, U-blox has created an all-band all-constellation GNSS receiver, a follow-up to its F9 IC with L6 reception and global coverage. The L5 band is lower frequency than L1 and L2 and has better signal properties, so L5 signals are more robust, said u-blox. X20 also adds L6 band support, used not only for navigation but also for correction services that help make position estimates more accurate.
In March 2023, Microchip Technology today added six new products to its CryptoAuthentication™ and CryptoAutomotive™ IC families that are JIL High rated secure key storage and FIPS certified.
In terms of Product Type, the industry is segmented into Single-Function ICs and Multi-Function ICs.
The Authentication Type is segregated by Device Authentication, Message Authentication and User Authentication.
The End Use is classified by IoT Devices, Consumer Electronics, Automotive, Industrial, Healthcare and Banking & Finance.
Key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe and Middle East and Africa (MEA) have been covered in the report.
The global crypto authentication ICs industry is projected to witness CAGR of 7.5% between 2024 and 2034.
The global crypto authentication ICs industry stood at USD 1,232.6 million in 2023.
The global crypto authentication ICs technology industry is anticipated to reach USD 2,705.8 million by 2034 end.
South Asia & Pacific is set to record the highest CAGR of 9.3% in the assessment period.
The key players operating in the global crypto authentication ICs industry include Texas Instruments, Microchip Technology, Infenion Technologies, NXP Semiconductors, STMicroelectornics, Broadcom Inc among others.
| Market Estimated Size in 2024 | USD 31.2 billion |
|---|---|
| Projected Market Value in 2034 | USD 57.9 billion |
| Value-based CAGR from 2024 to 2034 | 6.4% |
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