The 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 physical cryptocurrency wallets that essentially store users' private keys in a secure hardware device. They provide high-level security by keeping private keys and seed words offline to protect cryptocurrency from risks like hacking and malware attacks. With the rising concern over digital security, hardware wallets have gained popularity as they safely store private keys offline and only enable transactions after physical confirmation by buttons on the device.
Market key trends:
One of the major trends driving the hardware wallet market is the improvement in security features to strengthen protection against threats. Market players are focusing on innovative techniques like two-factor authentication, biometric recognition, and physical security elements like tamper-proof casing to enhance security. For instance, hardware wallets now allow fingerprint or face recognition along with entering a PIN code for transaction confirmation. The multi-layered identity verification deters fraudulent activities. Additionally, advanced encryption standards securely store private keys to prevent unauthorized access even if the device falls into the wrong hands. Such advanced security features are augmenting the adoption of hardware wallets.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low as hardware wallets require high initial investment for R&D and production. The existing players have established brand name and distribution network.
Bargaining power of buyers: The bargaining power of buyers is moderate as hardware wallets have become commoditized over the years with presence of numerous brands at different price points. Buyers can negotiate on price to some extent.
Bargaining power of suppliers: Suppliers have moderate to low bargaining power as hardware wallet manufacturers source standard electronic components from various suppliers across the globe.
Threat of new substitutes: The threat of new substitutes is low as hardware wallets offer best security against theft. Software wallets cannot match hardware wallets's security features.
Competitive rivalry: Intense as major players compete on technology, security features, pricing and branding.
SWOT Analysis
Strength: Hardware wallets provide highest security for cryptocurrencies against hacking or theft. They are offline devices.
Weakness: Hardware wallets require technical know-how to set up and use. They are expensive compared to software wallets.
Opportunity: Growing adoption of cryptocurrencies worldwide is driving demand for secure hardware wallets. Increased institutional investment in cryptos present opportunities.
Threats: Advancement in crypto hacking techniques could pose risks. Volatility in crypto prices act as a deterrent for wider adoption.
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 investments in cryptocurrencies globally. Rising awareness about security of digital assets and government regulations supporting crypto trading are driving the need for hardware wallets.
North America dominates the global hardware wallet market currently owing to high cryptocurrency adoption in the US. Asia Pacific is projected to witness fastest growth during the forecast period with countries like China and India emerging as lucrative markets.
Key players operating in the hardware wallet market are ARCHOS S.A., ELLIPAL LTD., LEDGER SAS and OPOLO SARL. They are focusing on new product launches and geographic expansion to cater to the surging demand.
Read more
https://www.ukwebwire.com/hardware-wallet-market-size-share-growth-outlook-2023/
