by The Hardware Wallet Market is estimated to be valued at US$ 354.28 Mn in 2023 and is expected to exhibit a CAGR of 24% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Hardware wallets are dedicated devices that store users’ public and private cryptographic keys and sign transactions for the user. They look like standard USB drives but have a builtin screen and buttons for confirming transactions. Hardware wallets are increasingly being adopted by both merchants and individual investors to securely store their digital currencies offline without the risks of online wallets connected to the internet. They provide a convenient and secure way to manage cryptocurrencies.
Market Dynamics:
Increasing awareness about security of cryptocurrencies from theft and hacking is a major driver for growing adoption of hardware wallets. As cryptocurrencies gain more mainstream acceptance, concerns around security of digital assets has become paramount. Hardware wallets provide the highest level of security by keeping private keys completely offline and isolated from internet connected devices that are vulnerable to cyber threats. Rapid growth of cryptocurrency market capitalization in recent years coupled with higher volatility of prices has also boosted demand for secured hardware storage solutions like hardware wallets among serious cryptocurrency traders and investors. Another driver is the growing merchant acceptance of cryptocurrencies for payments. As digital currencies are increasingly used for retail transactions, merchants prefer secure custodial solutions like hardware wallets to safely store received cryptocurrencies without security risks of software wallets. This in turn is fueling demand for hardware wallets.
Segment Analysis
The hardware wallet market is dominated by the desktop/PC wallets segment due to the benefits of added security measures offered by desktop wallets over mobile and online wallets. Desktop wallets can only be accessed from the dedicated computer or device on which they are installed, making them less prone to hacking or theft compared to mobile and online wallets that are always connected to the internet.
PEST Analysis
Political: Governments across regions are formulating regulations to govern cryptocurrency exchanges and trading to curb illegal activities. This will positively impact the adoption of hardware wallets for secured storage.
Economic: High crypto market volatility and risks of cyber theft are encouraging individual and institutional investors to prefer hardware wallets for long-term storage of digital assets.
Social: Increased awareness and popularity of cryptocurrencies among millennials and generation Z is driving demand for hardware wallets to securely hold private keys.
Technological: Advancements in hardware security elements such as biometrics and multi-signature authentication are adding new layers of protection to hardware wallets.
Key Takeaways
Global Hardware Wallet Market Demand is expected to witness high growth, exhibiting CAGR of 24% over the forecast period, due to increasing awareness about digital frauds and cyber threats. The Asia Pacific region is expected to be the fastest growing market for hardware wallets due to the high adoption of digital payments and growing cryptocurrency community in countries like China, India and Japan.
Regional analysis: The Asia Pacific region dominates the global hardware wallet market and is expected to retain its dominance over the forecast period. Countries such as China, India, and Japan have emerged as hotspots for crypto investments and trading. This, along with growing awareness about digital security threats, is driving the demand for hardware wallets in the region.
Key players: Key players operating in the hardware wallet market are ARCHOS S.A., ELLIPAL LTD., LEDGER SAS and OPOLO SARL. ARCHOS S.A. holds a major market share due to its diverse product portfolio comprising cold wallets and touchscreen-enabled hardware wallets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
