Hardware Encryption Market Expected to Reach $1.8 Trillion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Hardware Encryption Market," The hardware encryption market was valued at $293.31 billion in 2022, and is estimated to reach $1.8 trillion by 2032, growing at a CAGR of 19.5% from 2023 to 2032.

Today, everyone, from businesses and governments to individuals, shares a common need and desire to safeguard important personal and private information. Whether it is stored or transported, data protection is essential. To protect against malicious hackers and organizational data breaches, it is necessary to encrypt in-flight data as well as data at rest. Hardware encryption provides a fortified layer of protection just in case unauthorized access is somehow granted to a computer network or storage device.

Moreover, in the BFSI sector, hardware encryption is essential for protecting the privacy and security of sensitive data. This sector deals with vast amounts of sensitive data, which in turn provides lucrative opportunities for the growth of hardware encryption. Meanwhile, there is an increase in demand for hardware encryption in the government sector, which can improve privacy and data protection capabilities of crucial assets. Multiple applications offered by hardware encryption in several industries are expected to propel the global market demand.

On the basis of the product, the hard disk drive (HDD) segment dominated the hardware encryption market share in 2022 and is expected to continue this trend during the forecast period. The growth of the segment is attributed to stabilization of the laptop market and surge in adoption of hard disk drives in cloud & other enterprise applications. In addition, the rise in popularity of social media, increase in number of mobile users, surge in penetration of next-generation connected devices, and increase in need for high-capacity storage devices drive the growth of the hard disk drive (HDD) segment. However, the solid-state drives (SSD) segment is expected to witness highest growth in the upcoming years, owing to the growing demand for encrypted solid-state drive as it provides faster encryption as compared to the hard disk drive (HDD) devices.

By region, Asia-Pacific dominated the market growth in 2022 and is expected to exhibit highest growth during the forecast period, owing to the heavy investments made by private and public sectors for securing sensitive data, which is resulting into increased demand for encryption software used to secure and ensure privacy of data. Moreover, the hardware encryption market in Asia-Pacific for encrypted storage devices is expected to grow at a notable rate, owing to surge in cases of data breaches and rise in need for data security.

The COVID-19 pandemic has significantly reshaped the businesses environment, imparting specific opportunities for the hardware encryption industry. With the considerable adoption of remote work policy, there may be a heightened demand for stable information transmission and storage solutions. Companies are increasingly spotting the importance of safeguarding sensitive information in a decentralized work environment, creating a massive market for hardware encryption industry. Moreover, the surge in cybersecurity issues throughout the pandemic has underscored the need for strong security measures. Hardware encryption, with its capability to offer hardware-based security, is poised to cope with these challenges efficiently. As regulatory requirements for information safety grow to be extra stringent, hardware encryption technology can function itself as a key player by means of offering solutions that not most effective enhance statistics protection however also ensure compliance. The growing incidence of online transactions, mainly in e-commerce, similarly amplifies the significance of hardware encryption in securing monetary transactions and patron facts. Additionally, the expansion of the Internet of Things (IoT) has unfolded new avenues for the industry to offer tailored encryption answers for interconnected devices. Hence, the hardware encryption industry has the possibility to thrive by way of aligning with the evolving needs of businesses in the post-COVID era, contributing to a more stable and resilient digital landscape.

Key Findings of the Study

• By product, the hard disk drive (HDD) segment accounted for the largest hardware encryption market share in 2022.
• By algorithm standard, the RSA segment accounted for the largest hardware encryption market share in 2022.
• By architecture, the ASIC segment accounted for the largest hardware encryption market share in 2022.
• Based on application, the consumer electronics segment accounted for the largest hardware encryption market share in 2022.
• Depending on end use, the commercial segment accounted for the largest hardware encryption market share in 2022.
• Region wise, North America generated the highest revenue in 2022.

The key players that operate in the hardware encryption market analysis are Broadcom Inc., International Business Machines Corporation, McAfee, LLC, Micron Technology, Inc., NetApp, Inc., Samsung Electronics Co., Ltd., Toshiba Corporation, Kingston Technology Company, Inc., Seagate Technology, LLC. And Western Digital Technologies, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the hardware encryption industry.