Cryptocurrency Hardware Wallet Market Expected to Reach $3.6 Billion by 2031

According to a new report published by Allied Market Research, titled, “Cryptocurrency Hardware Wallet Market By Hardware Component (ASIC, GPU, FPGA, Others), By Security Method (Pin, Two-Factor Authentication, Biometric Security, Others), By Type (USB Connectivity Type, Bluetooth Connectivity Type, NFC Connectivity, Others): Global Opportunity Analysis And Industry Forecast, 2022-2031". The cryptocurrency hardware wallet market size was valued at $442.56 million in 2021, and is estimated to reach $3.6 billion by 2031, growing at a CAGR of 23.7% from 2022 to 2031.

The cryptocurrency hardware wallet market is experiencing significant growth due to several key factors such as the escalating concern over cybersecurity and the need to protect digital assets from hacks and breaches is driving demand for secure storage solutions. In addition, the increasing mainstream adoption of cryptocurrencies and the expansion of the user base are leading to higher demand for hardware wallets. Furthermore, regulatory developments and compliance requirements are pushing individuals and institutions to prioritize secure storage methods. Moreover, the continuous innovation in hardware wallet technology, offering enhanced features and usability, is contributing to market expansion. Therefore, these factors are fueling the growth of the cryptocurrency hardware wallet market.

In the cryptocurrency hardware wallet market, several major trends have emerged. There is a growing emphasis on enhanced security features, including biometric authentication and tamper-resistant designs to safeguard digital assets. In addition, the increased interoperability with various cryptocurrencies and decentralized applications is becoming more important, leading to wallets that support a wider range of assets. Moreover, user-friendly interfaces and mobile compatibility are gaining traction, making hardware wallets more accessible to a broader audience. Furthermore, the integration of advanced cryptographic techniques and secure elements further enhances the overall protection of private keys. Therefore, these trends collectively shape the evolution of cryptocurrency hardware wallets, focusing on both security and user experience.

Furthermore, major market players have undertaken various strategies to increase the competition and offer enhanced services to their customers. For instance, in November 2021, the BC Vault, a new generation of crypto hardware wallets, partnered with the global virtual currency platform, Coinify. This collaboration with Coinify aims to strengthen BC Vault’s strong position in the crypto hardware market, building one more solid bridge to the fiat world. Furthermore, with the wide variety of payment methods available with Coinify, the extensive choice of cryptocurrencies, and the simple & easy verification process, the collaboration between BC Vault and Coinify is a joint push for making cryptocurrencies even more easily accessible to customers.

On the basis of type, the USB connectivity type segment is the highest growing segment. This is attributed to the fact that cryptocurrency mining requires a lot of computational power due to complex mathematical problems. For instance, Ledger, a French-based company, developed maximum security UBS crypto hardware wallet to protect crypto. The Ledger Nano S is one of the most advanced wallets that is able to store multiple cryptocurrencies simultaneously. Therefore, all these factors collectively are expected to drive the adoption of USB-based hardware wallet devices, subsequently propelling the market cryptocurrency hardware wallet market growth in the coming years.

By region, Asia-Pacific attained the highest growth in 2021. This is attributed to the fact that Asia-Pacific region has witnessed significant growth in cryptocurrency transactions and is expected to exhibit growth the developing nations such as India, Hong Kong, Singapore, and others. Moreover, the region has witnessed a surge in malware attacks among online wallets, which is a major driving factor for the projected growth.   

The COVID-19 outbreak had a positive impact on the growth of the cryptocurrency hardware wallet market, as the adoption of cryptocurrency has increased in the face of unprecedented circumstances. COVID-19 pandemic has significantly fueled the growth rate of the cryptocurrency hardware wallet market, owing to the significant rise in adoption of cryptocurrency by banks and financial institutions has been observed, owing to increase in need to share financial details with consumers during the COVID-19 outbreak. Therefore, the COVID-19 moderately impacted the cryptocurrency hardware wallet industry.

Key Findings of the Study

• By hardware component, the ASIC segment led the cryptocurrency hardware wallet market in terms of revenue in 2021.
• By security method, the PIN segment accounted for the highest cryptocurrency hardware wallet market share in 2021.
• By region, Asia-Pacific generated the highest revenue in 2021.

The report profiles of key players operating in the cryptocurrency hardware wallet market analysis such as BC VAULT, BitLox, CoolWallet, Cryptomeister, CryoBit LLC    , Etherbit Private Limited, Keystone, Ledger SAS, OpenDime, SafePal, SatoshiLabss.R.O., SecuX Technology Inc., ShapeShift, Shift Crypto AG, Sugi, OPOLO SARL, and ELLIPAL LTD. These players have adopted various strategies to increase their market penetration and strengthen their position in the cryptocurrency hardware wallet industry.