Embedded Security Market Advances as Fraunhofer Validates 22 nm RISC-V Secure Element for Next-Generation Connected Devices

October 26, 2026 -

The embedded security market is gaining momentum as semiconductor developers strengthen hardware-level protection for connected devices. On September 28, 2026, Fraunhofer announced the successful functional validation of its RISC-V secure element and made the OpenTitan-based security platform available for licensing. Manufactured using GlobalFoundries' 22 nm FD-SOI technology, the platform supports conventional and post-quantum cryptography and targets system-on-chips, application-specific integrated circuits, and chiplets. This development could shorten security integration timelines and expand access to trusted hardware for industrial automation, medical technology, communications, energy infrastructure, and Internet of Things (IoT) applications.

Companies including Infineon Technologies, NXP Semiconductors, STMicroelectronics, Microchip Technology, and Rambus are positioned to benefit from increasing demand for secure microcontrollers, authentication chips, cryptographic components, and hardware roots of trust. Competitive pressure is likely to increase as device manufacturers prioritize transparent security architectures, regulatory compliance, and protection against emerging cyber threats. Opportunities include licensing security intellectual property, integrating post-quantum cryptography into embedded platforms, developing tamper-resistant components, and forming partnerships with semiconductor manufacturers and IoT equipment providers.

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According to DataM Intelligence, the global embedded security market was valued at USD 8.92 billion in 2025 and is projected to reach USD 14.36 billion by 2033, registering a compound annual growth rate (CAGR) of 6.12% during the 2026-2033 forecast period. Increasing connected-device deployment, automotive electronics, digital authentication, and industrial automation are strengthening demand for integrated security across device lifecycles.

North America represents a major regional market, supported by extensive IoT deployment, advanced technology infrastructure, and growing cybersecurity requirements. Asia-Pacific offers attractive growth opportunities as connected manufacturing, consumer electronics, telecommunications, and automotive production expand. Hardware-based security components remain central to protecting device identities and sensitive data, while post-quantum cryptography, secure boot, and embedded authentication are gaining importance as manufacturers prepare for increasingly sophisticated cyberattacks and evolving security standards.

United States: Recent Industry Developments

• April 2026: Microchip Technology expanded its family of post-quantum-ready root-of-trust controllers for next-generation embedded systems, strengthening hardware-level protection against emerging cryptographic threats. The development supports secure boot, trusted system initialization, and long-term security integration for connected devices and security-sensitive embedded applications.
• March 2026: Microchip Technology expanded its Trust Platform with the TA101 TrustFLEX secure authentication IC and TA101 TrustMANAGER integrated with Kudelski Labs' keySTREAM service. The solution combines secure device authentication, cryptographic key management, and scalable firmware-over-the-air (FOTA) capabilities to help industrial and automotive manufacturers address cybersecurity compliance requirements.
• May 2026: Microchip Technology introduced next-generation 100/1000BASE-T1 single-pair Ethernet physical-layer transceivers integrating MACsec security, time-sensitive networking (TSN), and functional safety capabilities. The technology strengthens authenticated, encrypted in-vehicle and industrial communications while supporting deterministic data delivery for connected automotive architectures and industrial control systems.

Japan: Recent Industry Developments

• August 2026: Toshiba Electronic Devices & Storage Corporation began shipping engineering samples of its TXZ+TM Family Entry-Class M4V Group microcontrollers, featuring an Arm® Cortex®-M4 core with a floating-point unit operating at up to 80 MHz. The devices integrate chip protection, secure access memory, non-rewritable flash protection, and memory-access controls to mitigate unauthorized access and program tampering in IoT devices and industrial equipment.
• July 2026: Toshiba Electronic Devices & Storage Corporation commenced mass production of its TXZ+TM Family Entry-Class M4L Group microcontrollers, integrating dedicated motor-control hardware, functional-safety features, and embedded security functions. Dual-bank flash configurations support firmware updates during operation, while chip protection, secure access memory, and non-rewritable flash protection strengthen device integrity in connected appliances and factory-automation applications.
• May 2026: Toshiba Electronic Devices & Storage Corporation announced engineering samples of its TXZ+TM Family Entry-Class M4H Group microcontrollers, built around an Arm® Cortex®-M4 core with a floating-point unit for consumer and industrial system-control applications. The platform extends Toshiba's embedded-control portfolio with integrated processing and peripheral capabilities, supporting compact equipment designs and providing a foundation for implementing secure, reliable control systems in connected devices.

Key Mergers and Acquisitions

• Data I/O Corporation and I.A.R. Systems AB (IAR) - On July 10, 2026, Data I/O announced a non-binding letter of intent to acquire IAR's embedded software security intellectual property and related assets. The proposed transaction covers the Embedded Trust and Secure Deploy platforms, the eSecIP toolchain, and associated certificate-authority and provisioning infrastructure, including relevant software, source code, hardware, engineering infrastructure, equipment, and certifications. The strategic objective is to bring embedded security provisioning technology in-house and extend protection from embedded design through manufacturing.
• SEALSQ Corp. and L5 Cartronics - On July 14, 2026, the companies announced a strategic partnership to develop secure connectivity modules for IoT applications, particularly smart cameras and smart metering. The collaboration combines SEALSQ's semiconductor security, secure-element, PKI, and provisioning capabilities with L5 Cartronics' electronics design, manufacturing, and active electromagnetic-interference management technology. The intended outcome is a cost-efficient, scalable module architecture incorporating a SEALSQ secure-element die.

Key Players

Infineon Technologies AG | STMicroelectronics N.V. | Texas Instruments Inc. | McAfee, LLC | Microchip Technology Inc. | Intellias Ltd. | Karamba Security Ltd. | Samsung Electronics Co. | Idemia Group | Rambus Incorporated

Strategic Profiles: How Market Leaders Are Positioning for 2026

-Infineon Technologies AG: Strengthening its position in embedded security through hardware-based security solutions and trusted semiconductor technologies. Its portfolio supports secure boot, cryptographic operations, and device authentication across automotive, industrial, and connected applications.

-STMicroelectronics N.V.: Advancing embedded security through secure microcontrollers, secure elements, and hardware-based protection technologies. Its solutions help safeguard connected devices, protect sensitive data, and support secure communications across IoT and industrial systems.

-Texas Instruments Inc.: Integrating security capabilities into its embedded processing and microcontroller portfolio to support reliable connected applications. Its semiconductor technologies address secure data handling, device protection, and security requirements in industrial and automotive environments.

-Microchip Technology Inc.: Expanding embedded security capabilities through secure microcontrollers, cryptographic devices, and hardware security solutions. Its portfolio supports device authentication, secure key storage, and protection against unauthorized access across industrial, automotive, and IoT applications.

-Rambus Incorporated: Leveraging semiconductor security expertise to strengthen embedded protection through hardware security IP and cryptographic technologies. Its solutions focus on safeguarding sensitive data, protecting cryptographic keys, and supporting security requirements in connected and high-performance computing systems.

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Embedded Security Market Opportunities

-Strengthening IoT and Connected Device Protection: Integrating hardware-based security, secure boot, and trusted execution environments into connected devices to protect sensitive data and prevent unauthorized access.

-Securing Automotive and Industrial Systems: Expanding embedded security solutions for connected vehicles, automotive ECUs, industrial control systems, and smart manufacturing equipment to mitigate cyber threats and protect critical operations.

-Advancing Hardware-Level Cybersecurity: Capitalizing on demand for hardware security modules, secure elements, and embedded cryptographic technologies to safeguard device identities, firmware integrity, and sensitive information across edge computing and connected ecosystems.

Regional Insights

-Asia-Pacific: 40.42% (Largest share in 2025, driven by electronics manufacturing, connected-device adoption, and demand for secure chips across China, Japan, South Korea, and India).

-North America: 31.19% (Supported by advanced cybersecurity infrastructure, -automotive connectivity, payment security, and enterprise IoT adoption).

-Europe: 25.27% (Driven by stringent cybersecurity regulations and rising demand for secure automotive, industrial, and healthcare devices).

-Latin America: 5.94% (Growing through digitalization of banking, telecommunications, and connected infrastructure).

-Middle East & Africa: 3.00% (Supported by smart-city projects and digital infrastructure modernization).

Market Segmentation Analysis

-By Component: Hardware-based security modules and trusted platform components, embedded security software, and services covering integration, testing, consulting, and security management.

-By Application: Payment security for secure transactions, authentication for identity verification and access control, content protection for safeguarding digital media, and other applications involving data integrity and device security.

-By End-User: Automotive, healthcare, consumer electronics, telecommunications, aerospace and defence, and other industries requiring protection against unauthorized access, cyberattacks, and data breaches.

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