The global hardware wallet market is expected to be worth 0.91 billion USD in 2023. It is expected to grow at a CAGR of 27% during the forecast period and reach a value of 3 billion USD by 2028.
Hardware wallets are specialized physical devices used to store and manage Cryptocurrency private keys, and Private Keys are a vital piece of information that is needed to use the cryptocurrency in the hardware wallet. Cryptocurrency has rapidly gained momentum in recent years and is considered the decentralized currency of the future. It is accepted by many global firms, this also makes the crypto currency a target of theft and hacking which is why a safe and secure mode is necessary. Hardware wallets provide the best and the most secure way to store Cryptocurrency free from malware, theft, and hacks. These wallets are small and portable, connecting to your computer or mobile device through USB or Bluetooth. Hardware wallets are very easy to use and are widely recognized as one of the most reliable methods for storing cryptocurrencies, making them a popular choice for individuals and organizations seeking robust security for their crypto holdings.
Global Hardware Wallet Market Drivers:
Cryptocurrencies, in recent years, gained a lot of popularity due to the usability and security that they provide. It acts as a decentralized currency for payments, especially international payments. The major driving factor for this market is the growing acceptance of cryptocurrency; this increased the need for secure storage of this cryptocurrency in a way that can be easily managed and used for transactions. This also raised security concerns; hardware wallets can store the cryptocurrency in offline mode while also adding their levels of protection, and they also provide an easy and user-friendly interface that propels the Hardware Wallet Market. The risk of theft, breaches, and hacks is further reduced due to the hardware wallet being able to store cryptocurrency offline, away from the grid, and connected to the internet, isolating digital assets. These factors accelerate the market growth for the Hardware Wallet Market.
The growing adoption of cryptocurrency has set up new opportunities for the Hardware Wallet Market. Big players in other hardware devices can come into the market and use their resources and recognition to make more affordable and rugged Hardware Wallets.
Global Hardware Wallet Market Restraints:
Hardware wallets can be expensive due to the software and the hardware that goes into making them. Most of these companies are not relatively mainstream and don’t mass produce the hardware wallets, which makes it difficult to set an affordable price for the Hardware wallets, especially since software wallets also exist in the market, which are multiple times cheaper than the Hardware wallets.
As the cryptocurrency doesn’t fall under any government jurisdictions, governments around the world are trying to make it difficult for users to use the cryptocurrency, which is a major restraint for the Hardware Wallet Market. Cryptocurrency is rising in demand, but it’s still at a relatively new stage. This limits its adoption and usability for an average user; this further restricts the user from investing in cryptocurrency, which directly affects the Hardware Wallet Market. Hardware Wallets are physical objects that are relatively small in size. If misplaced, lost, or damaged, the crypto data stored in the system would be inaccessible and lost forever.
Impact of COVID-19 on the Hardware Wallet Market:
The Cryptocurrency market largely benefited from the COVID-19 pandemic, as people were exploring new currencies and safer investments. The influencers and celebrities also helped market the Cryptocurrency; all these had a direct impact on the increased demand for the Hardware Wallet Market. The pandemic also disrupted the supply chains of the Hardware Wallets raw materials and components, which slowed production during the high demand, which limited the Hardware Wallet Market shares.
REPORT COVERAGE:
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2022 to 2028 |
|
Base Year |
2022 |
|
Forecast Period |
2023 to 2028 |
|
CAGR |
27% |
|
Segments Covered |
By type, connection type, End-use, distribution channel & Region |
|
Various Analyses Covered |
Global, Regional, and Country Level Analysis; Segment-Level Analysis, DROC; PESTLE Analysis; Porter’s Five Forces Analysis; Competitive Landscape; Analyst Overview of Investment Opportunities |
|
Regions Covered |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
This research report on the global hardware wallet market has been segmented and sub-segmented into the following categories.
Hardware Wallet Market - By Type:
Hot wallets, also referred to as online wallets, are internet-connected software-based wallets that offer convenient access to cryptocurrencies through desktop or mobile applications. They are designed for frequent transactions and everyday use. However, their online connectivity makes them less secure compared to cold wallets, as they are susceptible to potential hacking or malware attacks.
On the other hand, cold wallets, also known as offline wallets or hardware wallets, provide an additional layer of security by storing private keys offline. These physical devices, which can resemble USB drives or specialized hardware devices, securely generate, store, and manage cryptocurrency keys. Cold wallets keep the private keys isolated from internet-connected devices, significantly reducing the risks of hacking and unauthorized access. Consequently, they are considered the most secure option for storing cryptocurrencies, particularly for long-term holdings.
Hardware Wallet Market - By Connection Type:
USB sector dominates this segment with the most prominent shares. USB connections are commonly used in hardware wallets. They connect the wallet to a computer or mobile device using a USB cable, ensuring stable and secure data transfer. USB connections are widely supported on various platforms. Near-field Communication (NFC) enables contactless data transfer between devices. Some hardware wallets have NFC connectivity, allowing users to tap or bring their wallet close to an NFC-enabled device like a smartphone or computer for easy interaction. This is the fastest type of connection as it requires only a single tap and is growing in popularity during the forecast period. Hardware wallets can use Bluetooth for wireless communication over short distances. This allows users to connect and manage their wallets from smartphones, tablets, or computers without the need for physical wires.
Hardware Wallet Market - By End User:
The segment is divided into Individual or commercial based on the end user. The Individual sector has dominated the market due to the growing popularity and awareness of crypto, which has increased usage by individuals as a possible digital investment. The commercial sector is also rapidly growing due to big brands accepting crypto payments like Tesla.
Hardware Wallet Market - By Distribution Channel:
The online distribution channel holds the highest shares in the Hardware Wallet Market; this is due to the unavailability of Hardware wallets in offline stores. Growing E-commerce and big distribution channels like Amazon and Alibaba listing the hardware wallets on their websites makes it easier for consumers to purchase them. The Offline distribution channels also promise growth due to the key players setting up their offline outlets and experience stores like Ledger SAS.
Hardware Wallet Market - By Region:
Geographically, The Asia Pacific region claims the highest share in the Hardware Wallet Market during the forecast period, and this is due to the presence of powerhouse countries like India, China, Japan, and South Korea that are already adopting cashless payments. South Korea is leading in the Hardware Wallet market with the highest growth rate. Countries like India and China have stringent laws regarding crypto due to government regulations, which have hampered the market size for Hardware Wallets.
KEY MARKET PLAYERS:
Ledger SAS, Ngrave.IO NV, Trezor Company s.r.o., Shift Crypto AG, SecuX Technology Inc., Key Hodlers, LLC, BitKey Technologies, Inc., Sofitto NV, ShapeShift AG, OPOLO SARL
RECENT HAPPENINGS IN THE MARKET:
Frequently Asked Questions
Ledger SAS, Satoshi Labs SRO, KeepKey, LLCC, oinkite Inc., Coolbitx Ltd, SHIFT, Cryptosecurity, Bit Lox, ELLIPAL Limited, Sugi (zSofitto NV) are the key players in the Global Hardware Wallet Market.
Type, Connection Type, and Regions are the segments covered in the Global Hardware Wallet Market.
It is anticipated to grow with a healthy CAGR of 27% over 2023-2028 during this forecast period.
The global hardware wallet market will be worth 0.91 billion USD in 2023. It is expected to grow at a CAGR of 27% during the forecast period and reach a value of 3 billion USD by 2028.
The expansion of the Hardware Wallet market is fuelled by factors such as increased worries about the safety of precious physical assets, increased perceived threat levels, increased retail and commercial banks, and increased security awareness.
Related Reports
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 1800
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region