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:
A hardware wallet is a physical wallet that securely stores the private keys for a user’s cryptocurrencies. It allows users to securely store, receive, and transfer cryptocurrencies like Bitcoin, Ethereum, Litecoin etc. without the risk of online hacking or theft. Hardware wallets are safer than online or software wallets as they ensure private keys never leave the device. Some key advantages of hardware wallets are improved security, easy to set up and use, and compatibility with various cryptocurrencies and exchanges. With rapid growth in cryptocurrency adoption and investments, hardware wallets have become crucial for securely storing digital assets.
Market key trends:
One of the major trends fueling the hardware wallet market is the rising number of cryptocurrency owners and investors globally. As per the 2023 Crypto Adoption Index, the number of global crypto owners has increased to over 300 million in 2022 compared to 106 million in 2020. This exponential growth in crypto adoption has increased the demand for secure methods like hardware wallets to store private keys. Another key trend is hardware wallet manufacturers adding advanced features like biometrics, multiple currency support and exchange integration to offer enhanced security and usability. Some wallets now allow online transactions while still keeping the private keys offline for maximum security.
Porter’s Analysis
Threat of new entrants: Low- High upfront investments required in research and development and resources discourage new entrants in this market. However, virtual space provides the opportunity for new start-ups with innovative solutions.
Bargaining power of buyers: High- The presence of numerous hardware wallet manufacturers enables buyers to negotiate on better prices and quality. Switching costs are fairly low as wallets are interchangeable.
Bargaining power of suppliers: Low- Components used in hardware wallets such as chips and integrated circuits have global suppliers. Suppliers have less bargaining power due to availability of substitutes.
Threat of new substitutes: High- Growth of crypto lending platforms, exchanges provide alternative investment options. Advances in multi cryptocurrency hot wallets allow storing crypto virtually reducing demand for hardware storage solutions.
Competitive rivalry: Intense-Fragmented market with many global and regional players competing on technology, security features and pricing. Brand loyalty and customer acquisition determine success within this competitive environment.
Key Takeaways
The Global Hardware Wallet Market Size is expected to witness high growth, exhibiting CAGR of 24 % over the forecast period, due to increasing institutional investments and retail adoption of cryptocurrencies globally.
The Asia Pacific region dominated the hardware wallet market in 2023 with a share of over 30%, with China and India emerging as major hubs of crypto ownership. Rising youth interest and government support for blockchain industry in the region is promoting hardware wallet adoption.
Key players operating in the Hardware Wallet Market are ARCHOS S.A., ELLIPAL LTD., LEDGER SAS and OPOLO SARL. Major players are focused on bridging the technology gap between hot and cold wallets by introducing hybrid wallet solutions for seamless crypto management and enhanced security features.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
