Security IP Market Accelerates as OEM Demand for Integrated, Certification-Ready Components Surges

Security IP moved into a new phase driven by Original Equipment Manufacturer (OEM) demand for embedded security components that support certification and can be tailored to semiconductor designs. The shift matters because it changes how security IP gets packaged and how suppliers structure their offerings, licensing, and services.

Application Binary Interface (ABI) Research reported rising demand for secure Root of Trust (RoT), key provisioning, authentication, and post-quantum-ready cryptography (PQC). The research tied these needs to changing supplier strategies, broader collaboration between hardware IP vendors, software stack providers, and chipmakers, and multi-certification alignment.

ABI Research said Security IP increasingly arrived as bundled subsystems that combined cryptographic libraries, firmware, and RoT modules, with mixed-revenue models. It cited turnkey certification and configurability as part of the move toward platform-style approaches using consistent APIs and multi-certification alignment. It also stated that services priced at between 10% and 30% of initial licenses represented a rising component with a longer tail end due to growing crypto-agility demands.

Collaboration and consolidation also featured in the research, including Synopsys integrating Elliptic Technologies and Intrinsic ID, and Cadence acquiring Secure-IC to build vertically unified Secure Element (SE) platforms. ABI Research also referenced providers including Rambus, FortifyIQ, and Xiphera, citing post-quantum agility, side-channel protection, and high-performance MACsec/IPsec engines aimed at Artificial Intelligence (AI), data center, and Internet of Things (IoT) designs.

“OEMs are looking for certified embedded security solutions that can be personalized to their use cases,” said Michela Menting, Vice President at ABI Research.