Hardware Encryption Market Overview:
Hardware Encryption Market would garner revenue of $296.4 billion by 2020, registering a CAGR of 54.6% during the forecast period of 2015 - 2020.
Hardware Encryption is a hardware based technique that is used for securing digital data. There are two forms of encryption; hardware based encryption and software based encryption. Hardware encryption uses a processor that contains random number of generators to generate encryption key. The key advantage of hardware-based solutions is that they eliminate the typical drawbacks of software-based solutions such as performance degradation for attacks aimed at the encryption key stored in memory. In hardware encryption, the security parameters and safeguard keys enhance the performance of encryption. These security parameters protect the encryption from cold boots and brute force attacks. Hardware encryption is a cost effective method that holds diverse applications in securing data efficiently.
The world hardware encryption market covers usage type, its applications and end users of hardware encryption. The usage type such as storage devices (hard disk drives and USB flash drives) and networks are discussed in this report. The applications include healthcare sector, military & aerospace sector, automotive & transportation sector, BFSI, IT & telecom, others (retail, education and individual users). On the basis of geography, the world hardware encryption market is segmented across North America, Europe, Asia-Pacific and LAMEA.
World Hardware Encryption Market Scenario
There are various types of algorithms present in the market but choosing the right type of algorithm for the right job is rudimentary. The encrypted chip/key works according to the type of algorithm used in it. In current hardware encryption market business scenario, encrypted hard disk drives are used at a notable rate owing to the presence of larger storage capacity at a low cost. Whereas, at present, encrypted USB flash drives available in the market are slightly costlier than encrypted HDDs. However, USB flash drives would grow rapidly in the years to come owing to the rising demand for robust memory storage devices, which are highly compact with maximum storage capacity and better security.
TOP FACTORS IMPACTING WORLD HARDWARE ENCRYPTION MARKET
Decreasing prices of encrypted hardware devices is one of the major factors affecting the global hardware encryption market. The reduced prices of encrypted chip/key have boosted the growth of the hardware encryption market in all regions. The advent of encrypted storage devices is likely to affect the unencrypted storage devices market.However, the entrance of encrypted storage devices is expected to give a hard hit to the normal storage market. Reduced price of encrypted storage devices has driven the increased adoption of such devices. The key manufacturers of these devices are Seagate, Toshiba, Samsung and SanDisk.
With increasing data security awareness, the adoption of encrypted storage devices is expected to grow in various industries. Healthcare industry would witness a tremendous growth in demand of encrypted hardware devices in the near future. However, it might be expected that over a period of time, stringent government regulations are likely to affect the hardware encryption market.
Growing number and complexity of data breaches & brute force attacks
Increasing number of data breaches and brute force attacks owing to burgeoning digitalization is one of the driving factors of hardware encryption. Brute force attacks are increasing at a rapid pace therefore, resulting in a strong need for encrypted devices. Most of the companies have started manufacturing encrypted keys/chips with algorithm of 128-bit symmetric key, 256-bit keys that has more security. It is expected that manufacturers would come up with higher algorithm bit keys and generate a higher demand for the same in applications such as healthcare, BFSI, military & aerospace and few others.
Lack of awareness
Lack of awareness and education regarding the importance of sensitive content in the form of digital data would negatively affect the growth of hardware encryption market. This is likely to have a serious bearing on the revenue generation and reputation of the company. However, over a period of time, one may expect the customers to realize the significance of encrypted devices.
Technological advancement on encryption chip
The advancement in the system-on-chip (SoC) would reduce the prices of encrypted chips. In the near future, it is expected that advanced technologies would reduce the cost difference between normal storage devices and hardware encrypted storage devices. Moreover, encrypted chips with higher algorithm bits than 128 or 256-bit AES hardware encryption would further increase the sales of hardware-encrypted devices, which would ultimately boost the growth of the hardware encryption market in the future
- The report provides an in-depth analysis of the hardware encryption market and offers current and future trends to identify lucrative investment pockets in the market
- The report identifies the key drivers, opportunities and restraints that shape the market and provides an impact analysis for the forecast period
- Porter’s five forces analysis highlights the potency of buyers and suppliers participating in this market. This would further offer a competitive advantage to stakeholders in making profitable business decisions; thus, helping them to strengthen their supplier and buyer networks
- Current and future trends are outlined to determine the overall attractiveness and highlight the profitable trends in order to gain a stronger foothold in the market
- Market estimation of geographic segments is derived from the current market scenario and expected market trends
HARDWARE ENCRYPTION MARKET SEGMENTATION
Hardware Encryption Market - By Usage
- Storage device
- Hard disk drive
- USB flash drives
Hardware Encryption Market - By Application
- Healthcare Sector
- Military & Aerospace Sector
- Automotive & Transportation Sector
- IT & Telecom
- Others (Retail, Education and Individual users)
Hardware Encryption Market - By End User
- Industrial and commercial
- Government Agencies
Hardware Encryption Market - By Geography
- North America