Category: Blog

https://mordorintelligence.com/industry-reports/hardware-wallet-market

Study Period:                           2019- 2026
Base Year:                                  2020
Fastest Growing Market:     Asia Pacific
Largest Market:                       Europe
CAGR:                                          29.24 %

Market Overview

The global hardware wallet market was valued at USD 202.40 million in 2020. It is expected to be valued at USD 877.69 million by 2026, registering a CAGR of approximately 29.24% over the forecast period (2021-2026). The rapidly growing demand for cryptocurrency during the pandemic has positively influenced the market for the hardware wallet. Cryptocurrencies, such as Bitcoin are gradually making a transition from uncertain investment instruments to payments. There is growing attention to payment habits and the financial life cycle, as the COVID-19 pandemic has led to more calls for dematerialization of payments.

• Hardware wallets are the physical devices that store private keys for cryptocurrencies offline in an encrypted device. Private keys in these wallets are required while spending cryptocurrencies, and the wallets enable traders to store the keys safely while protecting the information.
• With the expansion of the cryptocurrency market in December 2017, numerous new users gained knowledge about blockchain and cryptocurrency and started exploring the same. Thus, there has been a significant rise in blockchain and cryptocurrency wallet users. According to a survey conducted by Blockchain.com in 2021, there are more than 68.42 million blockchain wallet users. This number is expected to grow further as mobile accessibility improves rapidly.​
• Companies producing hardware wallets are experiencing an exponential increase in demand. With an increase in the number of people owning multiple cryptocurrencies, the demand for wallets is also increasing. The flexibility offered by these solutions, compared to software, web wallets, and paper wallets, impacts the growth of the market studied.
• Indiegogo launched HooFoo, the first app and hardware combination wallet that secures and simplifies cryptocurrency transactions. The recent numerous Bitcoin exchange hacks have driven the company to invent a safer cold storage Bitcoin wallet for cryptocurrency.
• Further, in February 2021, NEM Group and the NEM ecosystem announced that Ledger’s Nano S and Nano X hardware wallets now support the NEM NIS1 XEM token and are expected to support the XYM token on the launch of Symbol by NEM. The integration allows users to safely hold XEM and XYM assets by owning and securing their private keys with their ledger hardware wallets while using the NEM Nano Wallet to manage their tokens.
• Further, companies are gradually focusing on adding an extra layer of security to their products. For instance, in March 2021, the Goldpac Group selected IDEX Biometrics as its technology partner for its digital currency project in China. The company now plans to deploy IDEX’s fingerprint sensors in a new hardware-based digital wallet that may be compatible with the country’s new Digital Currency/Electronic Payment (DC/EP) program. DC/EP is essentially a digital version of the fiat CNY.
• Furthermore, some jurisdictions have gone further and imposed restrictions on investments in cryptocurrencies, the extent of which varies from one jurisdiction to another. Some countries (Algeria, Morocco, Nepal, Pakistan, Bolivia, and Vietnam) have banned all activities involving cryptocurrencies.

Scope of the Report

Hardware wallets are among the most convenient and safest options for storing cryptocurrency (where one can store private keys in a secure physical device). These have significant advantages over standard software wallets, such that private keys are often stored in a protected area of a microcontroller and cannot be transferred out of the device in plaintext. Although hardware wallets make transactions online, they are stored offline, which delivers increased security. Hardware wallets can be compatible with several web interfaces and can support different currencies.​