Automotive Trusted Platform Module Market Analysis (2024 - 2030)

As per the latest research findings, the projected size of the Automotive Trusted Platform Module (TPM) market stands at USD 2,279.70 million for the year 2023, with expectations to soar to USD 6,071.43 million by 2030. Over the forecast period spanning from 2024 to 2030, the market anticipates a steady growth trajectory, registering a Compound Annual Growth Rate (CAGR) of 15.02%.

Industry Synopsis:

The Automotive Trusted Platform Module (TPM) market revolves around ensuring the security and reliability of the computing environment through authentication mechanisms and other protocols. Utilizing a dedicated chip known as the Trusted Platform Module, the integrity and dependability of the software platform are upheld. Functions such as data encryption, disk encryption, and data protection are facilitated by the TPM, thereby fortifying the platform's integrity. Contemporary technology is employed to secure keys, encrypt data on computer storage devices, and validate trusted boot pathways. With the proliferation of digitization and the proliferation of various platforms, ensuring customer privacy and security becomes imperative. The Trusted Platform Module securely stores Rivest-Shamir-Adleman (RSA) encryption keys specific to the host system, enabling hardware authentication. Through authentication and attestation procedures, TPM stores platform measurements to ensure software platform reliability and foster secure computing across all environments. This technology finds utility in full disk encryption utilities like dm-crypt and BitLocker, safeguarding encryption keys for computer storage devices and providing integrity authentication for trusted boot pathways comprising firmware and the boot sector. Authentication is imperative for data protection, and these factors are poised to shape the market dynamics over the forecast period.

Impact of COVID-19 on the Industry:

The growth momentum of the market has been tempered by the repercussions of the Covid-19 pandemic. The embedded security hardware industry witnessed a significant downturn in sales due to the suspension of industrial activities, leading to a decline in the demand for integration services and sales of new embedded security interface products. However, initiatives such as the COVID-19 Solutions Fund established by Mozilla as part of the Mozilla Open-Source Support Program signify efforts to mitigate the pandemic's impact. Under this initiative, grants totaling up to USD 50,000 are allocated to open-source technology initiatives, including embedded security solutions, aimed at addressing the challenges posed by the Covid-19 pandemic.

Market Drivers:

Surge in the Adoption of Devices like Tablets, Laptops, and Mobile Devices:

The escalating adoption of devices such as tablets, laptops, and mobile devices in recent years acts as a catalyst for the TPM market. The TPM chip, integrated into the device or computer's motherboard, plays a pivotal role in enhancing security measures. With the increasing usage of online banking and authentication apps, TPM ensures the security and integrity of platforms, mobile devices, or PCs, safeguarding them against external software intrusions. The burgeoning adoption of tablets, laptops, and mobile devices is anticipated to drive the demand for TPM in the market.

Increasing Demand for TPM in IoT Computing:

As automobiles evolve into integral components of the Internet of Things (IoT), there is a burgeoning demand for TPM in IoT computing. With a plethora of wireless technologies connecting vehicles to the external environment, the automotive sector is witnessing a rapid transformation. However, this enhanced connectivity also exposes vehicles to cybersecurity threats, with automotive cybersecurity incidents witnessing a significant uptick in recent years. As a result, the demand for TPM in IoT computing is poised for substantial growth in the foreseeable future.

Market Restraints:

Limited Awareness Regarding the Benefits of TPM in Economically Disadvantaged Regions:

One of the primary challenges hindering market growth is the lack of awareness regarding the benefits of TPM, particularly in economically disadvantaged regions. The dearth of awareness in developing economies acts as a restraint to market expansion, particularly in regions such as the Asia-Pacific, which comprises a significant proportion of underdeveloped or developing nations. Efforts to disseminate awareness in these regions present a crucial challenge for market players aiming to tap into these burgeoning markets.

Automotive Trusted Platform Module - By Type

• Integrated
• Discrete

The categorization of the TPM market encompasses discrete, integrated, and other types. Among these, Integrated TPM is projected to experience the most rapid growth, with a Compound Annual Growth Rate (CAGR) of approximately 15.01% from 2021 to 2026. The surge in demand for integrated TPM is primarily attributed to escalating security threats. Manufacturers commonly integrate TPM into their devices during the production phase to mitigate security risks. Notably, Infineon Technologies introduced the OPTIGATM TPM SLM 9670 in March 2019, specifically designed for industrial applications. This TPM ensures the identity and integrity of various devices within connected automated factories, including industrial PCs, controllers, and servers. The introduction of such innovative products is expected to drive accelerated growth in this market segment during the forecast period.

Global Automotive Trusted Platform Module - By Application

• Mobile Security
• Automotive
• Banking, Transport, Pay TV & ID
• Wearable
• Banking
• Transport
• Security in IoT Connectivity
• Others

The market segmentation based on application includes automotive, consumer electronics, retail, government, BFSI (Banking, Financial Services, and Insurance), general manufacturing, defense, aerospace, healthcare, and other sectors. The consumer electronics industry is anticipated to register the highest CAGR of 16.22% from 2021 to 2026, driven by increased adoption of IoT and growing demand for gadgets like laptops, smartphones, and personal computers. Factors such as technological advancements, economic growth, and affordability contribute to the increased demand for these devices and accompanying TPM solutions. Moreover, the global pandemic has further spurred demand for PCs and laptops for remote work and e-learning, further boosting the TPM market.

Global Automotive Trusted Platform Module - By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

Geographically, the global Trusted Platform Module (TPM) market comprises five key regions: North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The Asia Pacific region is expected to witness significant growth, driven by accelerating industrialization and increased utilization of e-commerce services. Notably, six Southeast Asian countries have observed a substantial surge in internet shoppers since the onset of the pandemic, with projections indicating a rise to 350 million online shoppers by 2026. Additionally, the increasing adoption of IoT services is anticipated to further fuel market expansion in the region. In North America, the market is poised to secure the highest share during the forecast period, attributed to escalating demand for security systems and rapid advancements in digital technology.

Technical advancements in communication technologies such as 4G and 5G have contributed to increased internet penetration in Europe, making it the second-largest contributor to the TPM market. Leading economies in the region, including France, Germany, Italy, and the United Kingdom, play a pivotal role in driving market growth. The widespread use of smart devices like tablets, smartphones, and computers in developed European nations has fueled the demand for TPMs. Additionally, the growing need for cybersecurity, coupled with hardware-based solutions due to sophisticated software-based attacks, further propels the TPM market in Europe.

Global Automotive Trusted Platform Module - By Company

1. IBM
2. AMD
3. HP
4. Intel
5. Infineon
6. Lenovo
7. Microsoft
8. Nationsnz
9. Nuvoton
10. Samsung

Recent Developments in the Global Automotive Trusted Platform Module Market:

• Business Collaboration: In 2020, MERA, Mocana, and Osaka NDS collaborated with Automotive Grade Linux (AGL) to develop open-source solutions for connected automotive technology, aiming to provide scalable, end-to-end security for AGL-based systems onboard connected or autonomous vehicles.
• Product Launch: In 2020, BlackBerry Limited introduced QNX Black Channel Communications Technology, a new software solution with ISO 26262 ASIL D certification, enabling OEMs and embedded software developers to ensure secure data communication exchanges within their safety-critical systems.
• Product Launch: Also in 2020, NXP unveiled the S32G, a single-chip version of two processors, designed for automotive and enterprise network processing. The S32G serves as a gateway processor for connected automobiles, providing enterprise-class networking capabilities and facilitating secure communication for advanced driver assistance systems (ADAS).