Hardware wallets are specialized cryptocurrency wallets to keep users' private keys on a safe, encrypted hardware device. To protect sensitive data, hardware wallets are designed to let users store private keys in a secure location on a microcontroller. A software wallet's data may be stolen or damaged by computer viruses, whereas hardware devices are designed to be immune to these threats. The user can authenticate the entire functionality of the gadget using the hardware wallet running open-source software.
Due to the increase in demand for trading in cryptocurrencies and digital currencies, this gadget is widely used on a business basis. Additionally, the wallet programs are built with an improved theft-free and hacker-proof module to make devices vulnerable to potential threats. During the projection period, it is anticipated that the increased security provided by these devices over software, paper wallets, and web wallets would promote market growth.
A cryptocurrency public ledger system is a record-keeping system. The distributed ledger technology is designed to record transactions of assets and its detail in multiple places simultaneously. This system is intended to maintain transparency among users to reduce human errors, financial loss of data, or machine errors. Furthermore, the public Ledger maintains data related to identities anonymously, its cryptocurrency balance, and records genuine transactions to reduce manipulation during the transaction process, which is anticipated to drive the growth of the cryptocurrency market, thereby influencing the development of the hardware wallet market.
The surge in demand for cryptocurrencies such as bitcoins, dogecoin, and Ethereum across the developing economies such as India, China, and Brazil is expected to offer a significant opportunity for the growth of the hardware wallet market, owing to the rise in inflation and potential for safe-haven assets. For instance, developing countries such as India, China, Japan, and Brazil possess some of the largest IT populations and are experiencing a surge in digital currency trade. This has led to a rise in awareness levels of cryptocurrencies, which is expected to create remunerative opportunities for expanding the global hardware wallet market during the forecast period.
Asia-Pacific holds the highest market share and is projected to grow at a CAGR of 24% during the forecast period. The growth of the hardware wallet market in Asia-Pacific is driven by the trend for secure encrypted pin wallets and theft-free technology. In addition, the rapid surge in multiple cryptocurrencies worth in the recent decade is anticipated to significantly contribute to the growth of the hardware wallet market during the forecast period.
North America is the fastest-growing region. The ever-increasing demand for cryptocurrencies in the commercial sector in North America is one of the prime factors driving the growth of the hardware wallet market. The US and Canada contribute significantly to the hardware wallet market in this region, owing to government initiatives to legally adopt and monitor cryptocurrency systems across their commercial sectors. The US is leading in providing a legal and regulatory framework for monitoring cryptocurrency, which is further expected to offer significant opportunities for the growth of the hardware wallet market in this region.
Europe is the second-largest region and is projected to reach USD 625 million, growing at a CAGR of 25.7% during the forecast period. The European hardware wallet market is one of the leading adopters of cryptocurrency across the commercial sector, owing to a surge in various initiatives by governments and prime players in this region. For instance, according to a Reuters report, the European Union is expected to put in place a comprehensive framework to adopt distributed ledger technology and crypto-assets in the European Union financial sectors, which is anticipated to offer growth opportunities for the hardware wallet market in the coming years.
The key players in the global hardware wallet market are ARCHOS, BitLox, CoolBitX Technology Ltd., ELLIPAL Limited, Ledger SAS, OPOLO SARL, ShapeShift, Satoshi Labs SRO, Shift Crypto AG, and Sugi (zSofitto NV).