Hardware Wallet Market Outlook - 2028
The global hardware wallet market size was valued at $0.22 billion in 2020, and is projected to reach at $1.02 billion by 2028, growing at a CAGR of 24.0 % from 2021 to 2028. A hardware wallet is a specialized cryptocurrency wallet designed to store user private keys in a secure encrypted hardware device. Therefore, the hardware wallets are meant to enable users to store private keys at a protected area of the microcontroller while protecting confidential information. Hardware devices are intended to be immune from computer viruses that may steal or damage data in a software wallet. The hardware wallet operating on an open-sourced software allows user to authenticate the complete function of the device.
The hardware wallet device utilizes technologies such as near-field communication and Bluetooth to connect with electronic applications. This device is popularly used at a commercial level, owing to surge in demand for digital currencies or cryptocurrencies for trading. Moreover, the wallet applications are designed with an enhanced hacked and theft-free module to make devices invulnerable from any potential threats. The enhanced security offered by these devices, in comparison to software, paper wallet, and web wallets, is expected to support the market growth during the forecast period.
The hardware wallet industry is expected to witness notable growth during the forecast period, owing to rise in demand for high transparency of distributed ledger technology across the commercial sector. Furthermore, the market growth is expected to be driven by increase in the development of new technology across the digital currency or cryptocurrency market. Moreover, a rapid surge in the number of investments in cryptocurrency-based devices is expected to propel the hardware wallet market growth.
Hot Wallet segment will grow at a highest CAGR of 25.1% during 2021 - 2028
However, implementation of government regulations against cryptocurrency or digital currency and increase in concerns regarding privacy &security of crypto are acting as a major challenge for this market. On the contrary, surge in technological innovations in the commercial sector is opportunistic for market growth. In addition, high growth potential in developing economics coupled with surge in focus on security is expected to offer lucrative opportunities for the expansion of the hardware wallet market during the forecast period.
Covid-19 Impact Analysis
The emergence of COVID-19 has acted as a major driver for the growth of cryptocurrency market, propelling the demand for hardware wallet devices. The market is estimated to witness relatively high growth till the end of 2021. However, the global hardware wallet market was primarily hit by several obstacles due to the implementation of lockdown and halt in manufacturing &selling activities. This, in turn, led to lack of availability of raw materials & skilled workforce, contractual obligations, and project delays or cancellations. Moreover, the emergence of multiple cryptocurrencies storage devices in the recent decade is expected to drive the hardware wallet market during post pandemic period.
The hardware wallet market is analyzed by type, connection type, end user, distribution channel, and region. On the basis of type, the market is fragmented into hot wallet and cold wallet. The hot wallet segment dominated the market, in terms of revenue, in 2020, and is expected to follow the same trend during the forecast period. On the basis of connection type, the market is segregated into near-field communication, Bluetooth, and USB. The USB segment was the highest revenue contributor in 2020, and anticipated to garner significant market share during the forecast period.
By end user, the market is bifurcated into commercial and individual. The individual segment garnered the highest share in 2020, and is expected to grow at a high CAGR from 2021 to 2028. By distribution channel, the market is fragmented into online and offline. The online segment led the market, in terms of revenue, in 2020, and anticipated to acquire significant market share during forecast period.
By End User
Individual Segment holds a dominant position throughout the forecast period.
Region wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, Italy, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). Asia-Pacific is expected to register the highest growth rate during the forecast period.
Asia-Pacific, specifically China, remains a significant participant in the global hardware wallet market. Major organizations in the country are intensely putting resources into the technology. For instance, Postal Savings Bank of China, Co., Ltd. launched new biometric hardware wallet to enhance its banking services, thereby supporting the growth of the market across the region.
Top Impacting Factors
Significant factors that impact growth of the global hardware wallet industry include increase in number of major investments from prime player in commercial &private sectors coupled with rise in demand for advance of next-generation payment system across the world. However, lack of consumer understanding regarding the market is acting as a major barrier for early adoption, which hampers growth of the market.
On the contrary, rise in number of end users in the commercial sector globally is anticipated to provide remunerative opportunities for the expansion of the hardware wallet market during the forecast period.
Competitive analysis and profiles of the major hardware wallet market players such as ARCHOS, BitLox, CoolBitX Technology Ltd., ELLIPAL Limited, Ledger SAS, OPOLO SARL, Satoshi Labs SRO, ShapeShift, Shift Cryto AG, and Sugi (zSofitto NV). are provided in this report.
North America region would exhibit the highest CAGR of 26.5% during 2021-2028
Key Benefits For Stakeholders
- This study comprises analytical depiction of the hardware wallet market size along with the current trends and future estimations to depict the imminent investment pockets.
- The overall hardware wallet market analysis is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
- The current hardware wallet market forecast is quantitatively analyzed from 2020 to 2028 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the smart display.
- The report includes the hardware wallet market share of key vendors and hardware wallet market trends.
Key Market Segments
- Hot Wallet
- Cold Wallet
By Connection Type
- Near-field Communication
By End User
By Distribution Channel
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Latin America
- Middle East
- CoolBitX Technology Ltd.
- ELLIPAL Limited
- Ledger SAS
- OPOLO SARL
- Satoshi Labs SRO
- Shift Crypto AG
- Sugi (zSofitto NV)
Hardware Wallet Market Report Highlights
By Connection type
By End user
By Distribution channel
Key Market Players
CoolBitX Technology Ltd., BitLox Ltd., ARCHOS S.A., Ledger SAS, ShapeShift, Sugi (Sofitto NV), Shift Crypto AG, SatoshiLabss.r.o., OPOLO SARL, ELLIPAL Ltd.
Hardware wallet is a specialized type of cryptocurrency wallet intended to store in a secure hardware device. The hardware is often connected through USB, Bluetooth, and near-field communication. Furthermore, the hardware wallet is used to store private keys in a protected area of a microcontroller, which is intended to transfer data out of device in plaintext form.
Hardware wallet is popular for use in commercial sectors, owing to surge in adoption of digital currency in developing economies and acceptance of cryptocurrency across major financial institutions across the world. Moreover, hardware wallet application such as cold hardware wallet has advanced features such as it holds multiple digital currencies, is immune to computer viruses, and has pin-encrypted access security. All these factors collectively offer remunerative opportunities for the market.
Globally, various key players are investing in hardware wallet application to make them compatible with various industrial platforms. For instance,the Postal Saving Bank of China launched a new biometric hardware wallet to support large-scale digital currency testing across major cities in China. Moreover, Bitso, a leading cryptocurrency trading platform in Mexico, raised a venture capital fund of $250 million. This venture initiative is expected to boost the growth of cryptocurrency across Mexico.
The key players profiled in the report include ARCHOS, BitLox, CoolBitX Technology Ltd., ELLIPAL Limited, Ledger SAS, OPOLO SARL, Satoshi Labs SRO, ShapeShift, Shift Cryto AG, and Sugi (zSofitto NV).