June 16, 2024
Hardware Wallet Market

Hardware Wallet Market Is Estimated To Witness Strong Growth Owing To Increased Cryptocurrency Adoption

Hardware wallets are physical cryptocurrency storage devices that enable users to secure digital assets like Bitcoin and Ethereum by storing private keys in isolated environments. These wallets have become increasingly popular as they provide better security compared to virtual or software-based wallets by keeping users’ private keys and seed recovery phrases in an offline, physical space. Some key features of hardware wallets include PIN codes, biometric fingerprint sensors for authentication, compact size and portability. They aim to prevent theft and unauthorized transactions from internet-connected devices by keeping private keys away from hackers.

The global hardware wallet market is estimated to be valued at US$ 408.14 Bn in 2024 and is expected to exhibit a CAGR of 8.4% over the forecast period from 2024 to 2030. Growing cryptocurrency adoption and investment in digital assets along with rising concerns regarding digital security are anticipated to drive higher demand for hardware wallets during the forecast period.

Key Takeaways

Key players operating in the hardware wallet market are Pfizer Inc., Novartis AG, Merck & Co. Inc., Johnson & Johnson, GlaxoSmithKline PLC, Hoffmann-La Roche Ltd., Bayer AG, AstraZeneca, Amgen, and Bristol-Myers Squibb Company, among others.

Key opportunities in the hardware wallet space include new features like additional biometric authentication methods, larger storage capacities to hold multiple cryptocurrencies, and multi-signature security protocols. Several wallet providers are also expanding to international markets and targeting cryptocurrency exchanges, institutional investors and large holders.

Global hardware wallet manufacturers are focusing on partnerships with cryptocurrency exchanges and blockchain platforms to build solutions for large scale address security. Region-wise, Asia Pacific and Latin America are witnessing faster adoption of digital assets and increased demand for secure storage, thus representing lucrative growth opportunities.

Market drivers

The key driver for the Hardware Wallet Market Growth is the rising cryptocurrency ownership and investments. As digital currency prices surge, more individuals and companies are purchasing cryptocurrencies like Bitcoin leading to increased needs for secure and offline storage. Hardware wallets provide the highest level of security compared to virtual or software-based alternatives and give confidence to investors regarding asset protection against cyberthefts or hacks. This has significantly boosted their demand over the forecast period.

PEST Analysis

Political: Regulations regarding security and safety of cryptocurrency wallets are getting tighter. Governments are taking steps to prevent money laundering and fraudulent activities.

Economic: Rising sales of cryptocurrencies like Bitcoin and Ethereum are driving the demand for secure hardware wallets. The growth of the crypto market and high value of digital assets makes hardware storage essential.

Social: Increased awareness about cyber threats and hacks is encouraging individual and institutional investors to use dedicated hardware for cryptocurrency storage. Social media is promoting hardware wallets as a highly secure solution.

Technological: Newer wallet designs with added features like fingerprint authentication and waterproof casing are attracting users. Bluetooth and wireless connectivity in some models provide greater convenience. Advancements in cryptography and encryption algorithms bolster security.

North America holds the largest share of the global hardware wallet market in terms of value. The United States accounts for the major adoption of hardware wallets, supported by high cryptocurrency ownership in the country. Europe is another major revenue generator, led by the U.K., Germany, France, Switzerland and other countries with active crypto trading.

The Asia Pacific region is poised to witness the fastest growth during the forecast period. Rapid digitalization, growing internet penetration, and rising cryptocurrency investments especially in China, India, Japan, and South Korea are fueling the demand. Heightened interest of young users in digital currencies together with favorable government initiatives will additionally boost the hardware wallet market in Asia Pacific.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it