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2023

Cryptocurrency Mining Hardware Market

Cryptocurrency Mining Hardware Market Size, Share, Competitive Landscape and Trend Analysis Report by Type, by Coin, by Application : Global Opportunity Analysis and Industry Forecast, 2023-2032

BI : IT in BFSI

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Author's: Mayabrahmma Akhila | Onkar Sumant
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Cryptocurrency Mining Hardware Market Research, 2032

The global cryptocurrency mining hardware market was valued at $1.8 billion in 2022, and is projected to reach $5 billion by 2032, growing at a CAGR of 11.4% from 2023 to 2032.

Cryptocurrency mining is a mechanism by which Bitcoin and several other cryptocurrencies generate new coins and validate new transactions. It entails the use of huge, decentralized networks of computers worldwide to verify and safeguard blockchains, which are virtual ledgers that record bitcoin transactions. Computers in the network are rewarded with new coins in exchange for contributing their processing power. It is a virtuous circle where miners secure and maintain the blockchain. In return, the blockchain rewards coins, and the coins provide an incentive for the miners to maintain the blockchain. 

Cryptocurrency Mining Hardware Market Insights

Increase in adoption of digital currency and increase in adoption of Bitcoin is boosting the growth of the global cryptocurrency mining hardware market. In addition, increase in use of digital transformation technology is positively impacts growth of the market. However, high cost of cryptocurrency mining hardware and increasing security concerns is hampering the cryptocurrency mining hardware market growth. On the contrary, increasing internet penetration rate and rising launch of advanced cryptocurrency mining processors is expected to offer remunerative opportunities for the expansion of the market during the forecast period. 

Segment Review

The cryptocurrency mining hardware market is segmented on the basis of by type, coin, application, and region. On the basis of type, the market is categorized into central processing unit, graphics processing unit, application-specific integrated circuit and field programmable gate array. On the basis of coin, the market is fragmented into Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance Coin (BNB) and others. On the basis of application, the market is bifurcated into enterprise, and personal. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.  

Cryptocurrency Mining Hardware Market by Application

In terms of application, the enterprise segment expected to grow at highest CAGR during forecast period, owing to an increase in the adoption of cryptocurrency mining hardware application that provides enterprise-related services, such as credit management, transaction management, and asset management. However, the personal segment is expected to grow at the highest rate during the forecast period, owing to the high penetration rate of smartphones which has enabled customers to widely opt for cryptocurrency mining hardware services. 

Cryptocurrency Mining Hardware Market by Region

Region-wise, the cryptocurrency mining hardware market size was dominated by Asia Pacific in 2022 and is expected to retain its position during the forecast period, owing to growing innovation and technological progression in this region. In addition, companies are paying attention to launching product platforms and forming partnerships to support their market position in this region. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to increasing mergers and acquisitions activities, and the growing adoption of digital payments in this region. 

The key players that operate in the cryptocurrency mining hardware market are BITMAIN Technologies Holding Company, INTELION MINE LLC, INNOSILICON Technology Ltd, NVIDIA Corporation, Zhejiang Ebang Communication Co,Ltd, Advanced Micro Devices, Inc., Parallel Miner, Canaan Inc., AsicMinerz, and Bitfury Group Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the cryptocurrency mining hardware industry.

Key Benefits  

Cryptocurrency mining hardware market is one of the area of finance and economics that has attracted the interest of several disciplines. Several financial and technology analysts are investing in this area, highlighting its complexity and lack of agreement on many aspects. Major cryptocurrencies such as Bitcoin, Ethereum, and Litecoin have captured the attention of many IT executives and technologists. Cryptocurrency mining is the process of creating a new cryptocurrency. It is also the method by which the network certifies recent transactions and is an essential component of the blockchain ledger’s upkeep and development. In other words, mining is a method of maintaining records that uses much processing power. The decentralized peer-to-peer network that every miner contributes to makes the payment network. The process of mining involves the use of sophisticated hardware to solve a highly complicated computational arithmetic problem. The first computer to solve the puzzle receives the next block of cryptocurrency, and the cycle repeats. Such advantages drives the growth of the cryptocurrency mining hardware market outlook.

Earlier, cryptocurrency mining was attempted on gaming computers. The procedure was repeated, and as a result, the mining challenge and necessary processing power grew. Eventually, devices like computers and chips were developed solely for mining Bitcoin. As the technology progressed, it required energy-efficient hardware with powerful computing capabilities. Some of the popular mining hardware available in the  cryptocurrency mining hardware market are Antminer S19 Pro-ASIC, AvalonMiner 1246, Antminer D3, Bitmain Antminer S7, DragonMint T1, Ebang Ebit E11++, and others. 

Digital Capabilities 

Cryptocurrency mining hardware is a process of digitally adding transaction records to the blockchain. Crypto mining is a record-keeping process that is executed through enormous computing power. Each of the Bitcoin miners in the world contributes to a decentralized P2P (Peer-to-Peer) network to make sure the payment network is secure and trustworthy. In addition, the blockchain network is basically a decentralized P2P network that contains a shared ledger. The network has no central authority, so the transactions are recorded, processed, and validated in the miner’s network. The data shared over in the network is completely transparent. Moreover, the crypto miner hardware requires validating blocks of transactions to access their blocked rewards. Whenever a new transaction block is added to the system, a new BTC is introduced in the network. So, not only cryptocurrency mining device works to secure the network but also to verify the transactions. In order for the blockchain network to operate properly, miners need to work on the blockchain network. Such demands drive the growth of the cryptocurrency mining hardware market share.

Top Impacting Factors 

Increase in Adoption of Digital Currency 

The popularity of virtual or digital currency such as Bitcoins, Litecoins, Ethers, and others are expected to drive the cryptocurrency mining hardware market during the forecast period . People from developed countries are likely to adopt the easy and flexible transactional method offered by digital currency. This popularity of virtual currency as an exchange medium led the central bank to support digital currency. The central bank patented Central Bank Digital Currency (CBDC) activity provisions for digital currency projects across many developed countries. For instance, the Bank of Thailand and the Central Bank of Uruguay are applying the toolkit to their CBDC evaluation process. The Eastern Caribbean Central Bank and People’s Bank of China also support CBDC for adopting digital cash as an exchange medium. Several companies, such as Meta Platforms, Inc ., are expanding their business by offering digital money. For instance, in June 2019, Meta Platforms, Inc launched a digital currency named Libra. Libra is expected to enable customers to buy things or send money to others and cash out Libra online or at grocery shops. In addition, companies can benefit from fluctuating digital currency prices and strengthen their digital assets. Such demands drive the growth of the cryptocurrency mining hardware market. 

Increase in use of Digital Transformation Technology    

Digitization is the process of converting data or information into a digital format with the adoption of advanced technology. It plays a very important role in the cryptocurrency mining hardware, owing to the growing need for validating and recording transactions on the Bitcoin network for providing enhanced customer services and to prevent fraud and adding new blocks to the blockchain, thereby creating new Bitcoins in a decentralized manner. Furthermore, blockchain ledger also helps Bitcoin services to offer digital service to their customers and saves time on the digital consulting, which propels the growth of the cryptocurrency mining hardware market. In addition, rise in demand for digital transformation technology in the Bitcoin and growing dependency of various providers on SaaS solutions drive the growth of the cryptocurrency mining hardware market. In addition, market players across the globe are adopting various advance technologies such as blockchain technology, big data, and artificial intelligence to increase the productivity with minimal resource utilized, thus driving the growth of the cryptocurrency mining hardware market. 

Restraint 

High Cost of Cryptocurrency Mining Hardware 

Implementing cryptocurrency mining hardware requires substantial investments in terms of hardware, software, and personnel. This is projected to be a major restraint for small- and medium-sized Bitcoin companies, thus hindering adoption of mining hardware solutions. Cryptocurrency mining hardware is complex in nature, as it requires high level functions and integrations, leading to high costs standing between $10,000 and $70,000 and sometimes even higher than $150,000, in case of complex applications with high level features. Hence, this factor is expected to hamper the cryptocurrency mining hardware market growth. The key factors that lead to high costs are implementation, migration, size of team, and tech-debt associated with digital service technology. Architectural design requirements have been challenged as software architects and developers must migrate into micro-services, with individual databases.

Furthermore, creation of application programming interface (API) for communication between Bitcoin services with client side and load balancers adds up to the cost of implementing cryptocurrency, thus restraining the cryptocurrency mining hardware market growth. Moreover, to modernize software changes, tech-stack is required, as a result ensuring compatibility of legacy components, while mitigating application to the cloud for data storage. This leads to compatibility issues and fixing compatibility issues leads to higher cost, hindering the cryptocurrency mining hardware market growth. 

Opportunity 

Increase in Internet Penetration rate and Increased Launch of Advanced Cryptocurrency Mining Processors 

Increasing penetration of 3G and 4G networks and continuous increase in the number of internet users have a major influence on cryptocurrency mining hardware as it provides a much faster and more reliable connection than 2G networks, allowing for more accurate mining process and enabling more complex and sophisticated services. Furthermore, the increased availability of these networks also means that more people can access mining services, which further boosts the cryptocurrency mining hardware market growth. Also, increasing adoption of cloud-based services and other technologies in the IT industry boosts the cryptocurrency mining hardware market growth.

Furthermore, many key players are introducing advanced cryptocurrency mining processors to allow companies to manage inventory, improve customer experience, optimize the supply chain, and reduce operational costs. It is a network of physical devices that are embedded with software and firmware, sensors, and internet connectivity to gather data and transfer or store in databases. For instance, in February 2022, Intel launched a crypto-focused chip, dubbed “blockchain accelerator”, which intends to contribute to the development of blockchain technologies, with a roadmap of energy-efficient accelerators. Such developing strategies are expected to provide lucrative opportunity for the growth of the cryptocurrency mining hardware market. 

Key Benefits For Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the cryptocurrency mining hardware market analysis from 2023 to 2032 to identify the prevailing cryptocurrency mining hardware market opportunities. 

  • The market research is offered along with information related to key drivers, restraints, and opportunities. 

  • In-depth analysis of the cryptocurrency mining hardware market segmentation assists to determine the prevailing cryptocurrency mining hardware market opportunity. 

  • Major countries in each region are mapped according to their revenue contribution to the global cryptocurrency mining hardware market forecast. 

  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players. 

  • The report includes the analysis of the regional as well as global cryptocurrency mining hardware market trends, key players, market segments, application areas, and market growth strategies.

Cryptocurrency Mining Hardware Market Report Highlights

Aspects Details
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Market Size By 2032

USD 5 billion

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Growth Rate

CAGR of 11.4%

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Forecast period

2022 - 2032

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Report Pages

210

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By Type
  • Central Processing Unit
  • Graphics Processing Unit
  • Application-Specific Integrated Circuit
  • Field Programmable Gate Array
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By Coin
  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Tether (USDT)
  • Binance Coin (BNB)
  • Others
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By Application
  • Enterprise
  • Personal
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By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Italy, Spain, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

Parallel Miner, Zhejiang Ebang Communication Co., Ltd., Advanced Micro Devices, Inc., INNOSILICON Technology Ltd, NVIDIA Corporation, INTELION MINE LLC, AsicMinerz, Bitfury Group Limited, Canaan Inc., BITMAIN Technologies Holding Company

Analyst Review

Mining is the process of adding transaction records to Bitcoin's public ledger of past transactions and a "mining rig" is a colloquial metaphor for a single computer system that performs the necessary computations for "mining". This ledger of past transactions is called the block chain. The blockchain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the blockchain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere. 

The global cryptocurrency mining hardware market is expected to register high growth, due to an increase in development of distributed ledger technologies and an increase in electronic venture capital investment. Digital currency is now being used by developing nations as a means of financial transactions. Additionally, blockchain technology is frequently used in conjunction with virtual currency to provide decentralized and managed related capital. Blockchain technology enables quick decentralization. are driving the growth of the cryptocurrency mining hardware market. Thus, increase in adoption of cryptocurrency mining hardware, owing to its high reliability and low latency networks is one of the most significant factors driving the growth of the market. With surge in demand for cryptocurrency mining hardware, various companies have established alliances to increase their capabilities. For instance, in August 2023, Xsolla's Pay Station partnered with Crypto.com’s to creates new possibilities for game developers and players, enabling them to accept cryptocurrency payments and streamline transactions in a user-friendly and secure manner for a universally enhanced experience. 

In addition, with further growth in investment across the world and the rise in demand for cryptocurrency mining hardware, various companies have expanded their current product portfolio with increased diversification among customers. For instance, In October 2022, Canaan Inc., a Canada based crypto mining rig manufacturer introduced the Avalon Made A13 series, a new generation of bitcoin mining machines. The new series include two different models with enhanced computing power and improved power efficiency compared to its predecessors. The A1346 model features a hash rate of 110 TH/s and power efficiency of 30J/TH. The A1366 model, on the other hand, is equipped with a hash rate of 130TH/s and power efficiency of 25J/TH. 

Moreover, with increase in competition, major market players have started acquisition companies to expand their market penetration and reach. For instance, in In January 2022, Hut 8 Mining Corp. announced that they had acquired the cloud and co-location data center business of TeraGo Inc. The acquisition comprises five data centers in Canada, including a complete selection of scalable cloud services. Thus this will help the company to expand its business and customer base in the market. 

Author Name(s) : Mayabrahmma Akhila | Onkar Sumant
Frequently Asked Questions?

The Cryptocurrency mining hardware market is estimated to grow at a CAGR of 11.4% from 2023 to 2032.

The Cryptocurrency mining hardware market is projected to reach $5,020.35 million by 2032.

Increase in adoption of digital currency and increase in adoption of Bitcoin is boosting the growth of the global cryptocurrency mining hardware market. In addition, increase in use of digital transformation technology is positively impacts growth of the cryptocurrency mining hardware market. However, high cost of cryptocurrency mining hardware and increasing security concerns is hampering the market growth. On the contrary, increasing internet penetration rate and rising launch of advanced cryptocurrency mining processors is expected to offer remunerative opportunities for the expansion of the cryptocurrency mining hardware market during the forecast period.

The key players profiled in the report include BITMAIN Technologies Holding Company, INTELION MINE LLC, INNOSILICON Technology Ltd, NVIDIA Corporation, Zhejiang Ebang Communication Co,Ltd, Advanced Micro Devices, Inc., Parallel Miner, Canaan Inc., AsicMinerz, and Bitfury Group Limited.

The key growth strategies of Cryptocurrency mining hardware market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.

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Cryptocurrency Mining Hardware Market

Global Opportunity Analysis and Industry Forecast, 2023-2032