Hardware Wallet Market

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 cold wallet segment witness growth during the COVID-19 pandemic.

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. 

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. 

Segment Overview

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. 

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

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. 

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

By Type

• Hot Wallet
• Cold Wallet

By Connection Type

• Near-field Communication
• Bluetooth 
• USB

By End User

• Commercial
• Individual

By Distribution Channel

• Online
• Offline

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• LAMEA
  • Latin America
  • Middle East
  • Africa

Key Players

• ARCHOS
• BitLox
• CoolBitX Technology Ltd.
• ELLIPAL Limited
• Ledger SAS
• OPOLO SARL
• Satoshi Labs SRO
• ShapeShift 
• Shift Crypto AG
• Sugi (zSofitto NV) 

 Hardware Wallet Market Report Highlights