The global Hardware Wallet Market is estimated to be valued at US$ 354.28 Mn in 2023 and is expected to exhibit a CAGR of 24% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Hardware wallets are secure devices that store users’ private cryptographic keys and sign transactions for the user. They come as USB-like devices that store the private keys required to authorize blockchain activity and transactions in a secure stand-alone way without relying on software downloads or centralized services. They provide a simple and secure way to store cryptocurrencies including bitcoin, ethereum and many more. With increasing adoption and use of cryptocurrencies worldwide, there is growing need for secure hardware wallets to store digital assets.
Market key trends:
Increased security of digital assets – Hardware wallets provide maximum security and protection against cyber threats as private keys never touch an internet-connected device and keys are generated and stored inside tamper-resistant secure elements or microcontrollers. This has increased adoption for storing high value cryptocurrency holdings securely.
Growing popularity of mobile wallets – Major hardware wallet manufacturers are integrating hardware wallet capabilities into mobile devices through compatible software apps. This is allowing easy access and use of hardware wallets on-the-go from smartphones and tablets. The convergence of hardware and software is a key trend shaping the market.
Porter’s Analysis
Threat of new entrants: Low-medium. Entry barriers such as capital requirements and brand establishment are significant for hardware wallet manufacturers. However, connectivity to blockchains is becoming simpler.
Bargaining power of buyers: Medium-high. Buyers have many hardware wallet options available from different brands offering different features. Buyers can choose from various mediums of storage such as metal, paper and open-source hardware.
Bargaining power of suppliers: Low. Hardware and component manufacturers face low switching costs and have several alternative buyers in the consumer electronics industry.
Threat of new substitutes: Medium. Traditional software/web wallets remain competitors though lacking in security features. Mobile hardware wallets are an emerging threat.
Competitive rivalry: High. The market is highly fragmented with numerous hardware wallet providers focusing on specific blockchain networks or storage mediums. Frequent product launches intensify competition.
Key Takeaways
Global Hardware Wallet Market Demand is expected to witness high growth, exhibiting 24% CAGR over the forecast period, due to increasing cryptocurrency adoption. Rapid growth of bitcoin and altcoins along with rising awareness about crypto security is driving wallet demand.
Regional analysis: Asia Pacific region is projected to be the fastest growing market for hardware wallets due to presence of countries like China, South Korea with high crypto trading volumes. North America currently dominates led by United States. Growing number of blockchain projects and rising blockchain technology investments are accelerating wallet adoption in European countries.
Key players operating in the hardware wallet market are ARCHOS S.A., ELLIPAL LTD., LEDGER SAS and OPOLO SARL. Key players are focused on incorporating support for multiple cryptocurrencies and hardware security to gain an edge over competitors. They also emphasize on offering additional features like tokens tracking, price alerts and integration with exchanges for increased customer stickiness.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it