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 digital devices that allow users to securely store and transact virtual currencies like Bitcoin. They come with physical buttons or displays to confirm transactions without connecting to the internet so the private key never leaves the hardware. This provides extra layer of security compared to software or mobile wallets. Common use cases include managing funds, sending and receiving cryptocurrencies from exchanges to long term storage.
Market Dynamics:
The rapid growth in adoption of cryptocurrencies like Bitcoin across the globe is a key driver propelling the demand for secure and decentralized custody solutions like hardware wallets. According to Crypto.com, global crypto adoption has increased over 880% since 2015 with over 300 million crypto users currently. Another major growth driver is increasing investments inflows into crypto assets from large financial institutions. For example, Fidelity Digital Assets and NYDIG allocated over $500 million for Bitcoin in 2022, highlighting solid institutional interest. The growing awareness about hardware wallet benefits like private key protection is also fueling their adoption rate compared to software wallets.
SWOT Analysis
Strength: Hardware wallets have high levels of security and encrypt private keys. They keep private keys and crypto assets securely offline (three sentences). Hardware wallets are easy to use and provide users with a visual interface (three sentences). They support multiple cryptocurrencies and can store a variety of digital assets (three sentences).
Weakness: Hardware wallets may be susceptible to physical damage or loss which could result in loss of funds (three sentences). Some hardware wallets have limited storage capacities and functionality compared to software and mobile wallets (three sentences).
Opportunity: Growing interest in cryptocurrencies among Millennials and Gen Z is creating high demand for secure storage solutions like hardware wallets (three sentences). More mainstream merchant adoption of cryptocurrencies will drive increased need for hardware wallets (three sentences).
Threats: Software vulnerabilities could compromise the security features of some hardware wallets (two sentences). Regulatory uncertainties around cryptocurrencies in some jurisdictions pose compliance challenges (two sentences).
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 and blockchain technologies. As digital asset holders seek highly secure storage solutions, hardware wallets which keep crypto keys offline have seen rising adoption.
Regional analysis
North America dominated the hardware wallet market in 2023, accounting for around 35% of the global revenue, due to high affordability of hardware wallets and strong regulatory frameworks for crypto exchanges in the US and Canada. Asia Pacific is expected to grow at the fastest pace during the forecast period, owing to increasing availability of multi-currency hardware wallets in the region coupled with growing popularity of Bitcoin trading in countries such as China, India and Japan.
Key players
Key players operating in the Hardware Wallet Market are ARCHOS S.A., ELLIPAL LTD., LEDGER SAS and OPOLO SARL. ARCHOS S.A. is a French electronics firm specializing in portable media players and smartphones. Its Archos Safe-T Mini is lightweight hardware wallet supporting Bitcoin, Ethereum and other leading cryptocurrencies.
Read more
https://www.rapidwebwire.com/hardware-wallet-market-size-share-growth-outlook-2023/
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