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2020

U.S. Hardware Encryption Market

U.S. Hardware Encryption Market Size, Share, Competitive Landscape and Trend Analysis Report by Algorithm & Standard, Architecture, Product, Application and End Use : Opportunity Analysis and Industry Forecast, 2019-2026

IC : Software and Services

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Author's: Makarand Sinnarkar and Rachita Rake | Onkar Sumant
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U.S. Hardware Encryption Market Outlook: 2026

The U.S. hardware encryption market size was valued at $28.08 billion in 2018, and is projected to reach $259.12 billion by 2026, growing at a CAGR of 32.4% from 2019 to 2026.

US-Hardware-Encryption-Market-2019-2026

Hardware encryption involves encoding of data or information into a form, which is accessible to only authorized users. Encoding of the hardware requires an encrypting algorithm that generates cipher text, which can be read only after decryption. Decoding this private data needs an authorized user to type in a key or a password. In hardware-based encryption process, both the encryption and decryption are carried out by individual processors. Encryption and decryption processes play an important role in preventing unauthorized access to sensitive or private data, hence the hardware encryption market is expected to grow at a high rate in the coming years. Hardware encryption helps the user to protect confidential data during transmission and storage. With the advancements in technology, leading U.S. hardware encryption market players are developing various hardware-encrypted solutions to cater to the increase in demand in the storage industry.

U.S. Hardware Encryption Market
By Algorithm And Standard Software
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RSA is projected as one of the most lucrative segments.

High penetration of internet in the U.S., as well as continuous growth of online businesses in the country drive the market growth. There is an increase in the use of RSA Algorithm to secure the communication between e-commerce sites and web browsers as these online businesses deal with a lot of sensitive data of their customers. Furthermore, rise in adoption of AES algorithm in number of industries such as over-the-top (OTT) & entertainment businesses, educational institutions & eLearning businesses, corporate & government, and others provides numerous opportunities for the U.S. hardware encryption market. In order to avoid content piracy and unauthorized data leaks among several industries, the adoption of hardware encryption technology is expected to rise at a significant rate.

U.S. Hardware Encryption Market
By Architecture
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ASIC is projected as one of the most lucrative segments.

The report focuses on the growth prospects, restraints, and U.S. hardware encryption market analysis. The study provides Porter’s five forces analysis of the hardware encryption industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the hardware encryption market trends.

U.S. Hardware Encryption Market
By Product
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HDD is projected as one of the most significant segments.

Segment review

The U.S. hardware encryption market is segmented into algorithm & standard, architecture, product, application, and end use. Depending on algorithm and standard, the market is categorized into Rivest, Shamir, and Adelman (RSA), Advanced Encryption Standard (AES), and others. On the basis of architecture, it is classified into Application-Specific Integrated Circuit (ASIC) and Field-Programmable Gate Array (FPGA). The product segment includes Hard Disk Drive (HDD), Solid State Drives (SSD), Universal Serial Bus (USB), and incline network encryptor. By application, the U.S. hardware encryption market is categorized into consumer electronics, IT & telecom, automotive & transportation, aerospace & defense, healthcare, and others. The end use segment is classified into industrial, commercial, residential, and government.

U.S. Hardware Encryption Market
By Application
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Consumer Electronics is projected as one of the most significant segments.

The key players profiled in the hardware encryption market forecast includes International Business Machines (IBM) Corporation, Kingston Technology Company, Inc., McAfee, LLC, Micron Technology, Inc., NetApp, Samsung Electronics Co., Ltd., Seagate Technology LLC, Symantec Corporation, Toshiba Corporation, and Western Digital Technologies, Inc.

U.S. Hardware Encryption Market
By End Use
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Commercial is projected as one of the most significant segments.

Top impacting factors

The growth of the U.S. hardware encryption market is impacted by a number of factors such as increase in regulatory compliances regarding protection of private & sensitive data, declining prices of hardware encryption devices, growth of the consumer electronics such as smartphones & tablets, and rise in complexity & volume of data breaches and brute force attacks. In addition, widespread adoption of Internet of Things (IoT) technology & cloud services and ongoing technological advancement in encryption chip positively influence the market growth.

Growth of the consumer electronics such as smartphones and tablets

The U.S. hardware encryption market for consumer electronics is anticipated to hold the largest share during the forecast period, which is attributed to the rise in the demand for hardware encryption in consumer electronics products such as smartphones, laptop, and tablets, and also because of growing concern for data security in these devices. Increased demand for consumer electronic products such as smartphones, PCs, and laptops, has helped market players to sustain their business.

Increase in complexity & volume of data breaches and brute force attacks

Increase in number of data breaches and brute force attacks owing to rise in 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. Manufacturers are expected to come up with higher algorithm bit keys and generate a higher demand for the same in applications such as healthcare, BFSI, military & aerospace, and others.

Key Benefits for Stakeholders

  • This study includes the hardware encryption market opportunity, analysis, trends, and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and opportunities of the hardware encryption industry.
  • The hardware encryption market share is quantitatively analyzed from 2018 to 2026 to highlight the financial competency of the industry.
  • Porter’s five forces analysis illustrates the potency of the buyers & suppliers in the hardware encryption market.

U.S. Hardware Encryption Market Report Highlights

Aspects Details
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By Algorithm and Standard
  • RSA
  • AES
  • Other
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By Architecture
  • ASIC
  • FPGA
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By Product
  • Hard Disk Drive (HDD)
    • External hard disk drive
    • Internal hard disk drive
  • Solid State Drives (SSD)
  • USB flash drive
    • Up to 4GB
    • 5GB to 16GB
    • 17GB to 64GB
    • 65GB and above
  • Inline network encryptors (INE)
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By Application
  • Consumer electronics
  • IT and Telecom
  • Automotive and Transportation
  • Aerospace & Defense
  • Healthcare
  • Others
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By End User
  • Industrial
  • Commercial
  • Residential
  • Government
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Key Market Players

NETAPP, WESTERN DIGITAL TECHNOLOGIES, INC., MCAFEE, LLC., TOSHIBA CORPORATION, SYMANTEC CORPORATION, INTERNATIONAL BUSINESS MACHINES CORPORATION, MICRON TECHNOLOGY, INC., SEAGATE TECHNOLOGY LLC, SAMSUNG ELECTRONICS CO., LTD., KINGSTON TECHNOLOGY COMPANY, INC.

Analyst Review

According to the insights of CXOs of leading companies, the adoption of hardware encryption has increased for protecting sensitive data on portable devices such as USB flash drives, laptops, and others. Numerous benefits provided by hardware encryption technology such as consistent performance, ease of use, and robust protection against less and common sophisticated attacks offsets its cost higher than the software-based encryption. For instance, any brute-force attacks by hackers to gain access to hardware encrypted chips can be easily thwarted with the help of this.

Furthermore, Advanced Encryption Standard (AES) which is a specification standard by the National Institute of Standards and Technology (NIST) is gaining importance for data security in both the hardware and software encryption methods. The cryptographic module is rapidly gaining adoption among number of industries such as healthcare, government, military, and financial organizations in the U.S. Moreover, advanced encryption standard has become popular algorithm adopted in symmetric key cryptography by number of governmental agencies in the U.S. The use of AES in longer cryptographic keys offers easy implementation and can be used in restricted environments such as smart cards.

The U.S. hardware encryption market is consolidated and competitive, owing to the presence of well-diversified regional and international vendors. Prominent strategies such as product launch, acquisition and others are adopted by leading companies in an effort to expand their product offerings. The prominent players such as, Seagate Technology LLC, Toshiba Corporation, IBM, and few others are analyzed in the report in an effort to gain an insight into their winning strategies

Author Name(s) : Makarand Sinnarkar and Rachita Rake | Onkar Sumant
Frequently Asked Questions?

Market size is projected to reach USD 259.12 billion by 2026

The key market players operating in the market are International Business Machines (IBM) Corporation, Kingston Technology Company, Inc., McAfee, LLC, Micron Technology, Inc., NetApp, Samsung Electronics Co., Ltd., Seagate Technology LLC, Symantec Corporation, Toshiba Corporation, and Western Digital Technologies, Inc.

To get latest version of U.S. hardware encryption market report

Cybersecurity, IT asset security, Data security, Sensative information Security, Patent Security

The consumer electronics segment of Application is expected to drive the market growth

On the basis of top growing big corporation we select top 10 players.

Product extensions, mergers and acquisitions, collaboration and geogrpahical expansion are some of the major strategies adopted by leading vendors

Majority of the companies operating in the market are investing on R&D practices

Technological innovations, product extensions, partnership, mergers and acquisitions and geogrpahical expansion are some of the major growth strategies adopted by leading vendors

Market is expected to grow at CAGR of 32.4% from 2019 to 2026.

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U.S. Hardware Encryption Market

Opportunity Analysis and Industry Forecast, 2019-2026