Hardware Encryption Market Research Report- Forecast to 2030

Hardware Encryption Market Research Report, by Architecture (ASIC, FPGA), algorithm and standard (RSA, AES, DSA), Product (USB, Solid state drive, External and internal hard disk drives), Application (BFSI, Automotive, IT & Telecomm) and End-User– Forecast till 2030

ID: MRFR/SEM/3429-HCR | 100 Pages | Author: Aarti Dhapte | December 2023         

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Hardware Encryption Market

Hardware Encryption Market will exhibit a CAGR of 4.60% by 2030 and is expected to reach USD 1356.8 Billion in the forecast period of 2022-2030

By Algorithm Advanced encryption Shamir rivets and Adelman encryption
By Architecture The field programmed gateway array The amplification specific circuit
By Product Hard disk External hard disk Internal hard disk Solid-state drives
By End-users Residential Commercial Military Industrial
By Application Aerospace and defence Consumer electronics Healthcare Automotive and transportation Government and public unties
Key Players
Companies Profiled   Thales e-security    Samsung Electronics    Win Magic Inc    Toshiba Corporation    NetApp    Western Digital Corporation    Maxim Integrated Products Inc    Kingston Technology    Kanguru Solutions
Market Driving Forces   The high requirement for data security    The volume of data breaches is increasing at an exponential pace
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Hardware Encryption Market Overview

The Hardware Encryption Market has projected an estimated USD 1356.8 Billion in 2030. The CAGR value of the market is anticipated to gain 4.60% in the forecast period between 2022 to 2030. In the information sector, hardware encryption is a critical technology. It's a method that uses advanced mathematical procedures to encrypt hardware data. In addition, hardware encryption is a method of ensuring data security. It is difficult to recover information from an encrypted hard drive. Any encrypted data on the hard disc can only be accessed by the user with the correct password and security information. Hardware encryption technology is used in a variety of advanced applications. It is feasible to block any illegal access using hardware encryption technologies. This encryption system is also beneficial to deter online threats and potential hackers, which is one of the major factors for raising the demand in the hardware encryption market. Another important market driver is the complexity of existing data security systems. This can be easily solved with this smart security solution.

Covid analysis 

The covid 19 has destructive effects on plenty of global markets. Due to the pandemic, the hardware encryption market is facing several difficulties. The data security technologies are receiving less demand during this period. Plenty of software firms are focusing on other tasks. The hardware encryption market may have a declining effect due to all these factors. The deployment of the hardware encryption system is difficult during this pandemic. Implementing this technology can be sophisticated. However, the post covid 19 trends of the market look promising. The production rate and the supply of the hardware encryption device will happen smoothly. Therefore, the market has exceptional growth possibilities post the covid 19. 

Hardware Encryption Market Dynamics 

  • Crucial market drivers 

The high requirement for data security is a crucial demand driving factor for the hardware encryption market. The volume of data breaches is increasing at an exponential pace. It is enabling big companies to adopt the hardware encryption system. The hardware encryption provides access to users only with the correct password and security key. It offers considerable security to all the data of the company. Also, data breaches will continue to increase in the upcoming years.

The data storage and transformation is massive. All these factors will ultimately boost Hardware Encryption Market Demand in the forecast period. The complexity of other data security technologies is another crucial driver for the market. There are plenty of high-end technologies that provide security to data. However, they come with complex procedures. The hardware encryption technology comes with easy security deployment. These ease of deployment and high requirement for data security are the drivers that boost demand and revenue for the market. These market drivers will intensify in the forecast period. 

  • Market growth opportunities 

The hardware encryption technology offers plenty of benefits than the software encryption technology. Further, the innovation in the hardware encryption market will be high in the forecast period. Due to this, the market growth opportunities are massive. The innovation leads to new product development and variation in the market. All these factors will fuel the demand for Hardware Encryption Industry. The increasing investments in hardware encryption are another factor that provides plenty of market growth possibilities. The high investments will lead to market expansion and more product awareness. As per the Hardware Encryption Market Analysis, the future of this market looks promising. The growth trend of the hardware encryption market is stable over the forecast period. 

  • The market restraints 

The rise of hardware encryption technology increases the need for data centres. The well-established data centres to deploy this technology are less in several regions it is one of the crucial restraint in the market. The less number of data centres can slow down the overall adoption of hardware encryption by the end-users. The overall time required to deploy the hardware encryption system is also a restraining factor. It takes considerable time to adapt to the hardware encryption device from software encryption. These technical difficulties in the market are significant restraints. These retinas can have a declining effect on the market during the forecast period. Also, it can result in less demand and less profitability during the forecast period. 

  • The market challenges 

The lack of standardization is a major challenge in the market. Various market players use differentiated procedures to deploy this technology. The customer experience may vary due to this factor. The lack of standardization in the market can affect the market demand in the long run. The hardware encryption can work efficiently with cloud computing. The less adoption of cloud computing in some regions can affect the operations of hardware encryption. It is another factor that affects the overall hardware encryption market in the forecast period. The entry of new market players is another significant market challenge. The new entry of key players will cause more standardization issue in the market. 

  • Cumulative growth analysis 

The hardware encryption market growth remains stable during the forecast period. There is plenty of demand driving factors in the market. The demand from giant tech companies is a crucial market driver. Also, the increasing requirement for data security is continuously boosting the market revenue. Few factors can restrict the overall market growth in the forecast period. The transformation from software encryption devices to hardware encryption is a complex process. Further, the lack of standardization is a crucial challenge in the market. However, the market restraints will have a slight effect on the market. Moreover, the key players in the market are taking plenty of measures to develop the product and to expand the market. These factors show that the growth trend of the market remains positive. 

  • Value chain analysis 

North America holds the maximum Hardware Encryption Market Share. The number of hardware encryption manufacturers is high in the region. Also, the high need for data security is massive in several sectors. The key players of the market are powerful with plenty of demand and growth prospects. Hardware encryption is required in the military, automotive, healthcare and education sector. All these factors are the crucial drivers of the market. Further, awareness about hardware encryption is high in this region. There will be the highest hardware encryption market growth rate recorded in this region. Further, there are plenty of market growth opportunities that open new ways to expand the market.

Hardware Encryption Market Segment Overview 

By algorithm

  • Advanced encryption 

  • Shamir, rivets and Adelman encryption 

By architecture 

  • The field programmed gateway array 

  • The amplification specific circuit 

By product 

  • Hard disk 

  • External hard disk 

  • Internal hard disk 

  • Solid-state drives

By application 

  • Aerospace and defence 

  • Consumer electronics 

  • Healthcare 

  • Automotive and transportation 

  • Government and public unties 

By end-users 

  • Residential 

  • Commercial 

  • military 

  • Industrial 

By region

  • North America 

  • Europe 

  • Asia pacific 

Hardware Encryption Market Regional Analysis 

The hardware encryption market is fragmented into Asia Pacific, Europe and North America. Also, North America will outgrow the other markets in the forests period. The high technological developments are the prime cause for high demand. Further, the high requirement to protect data and prevent data breaches is driving the demand. Also, there are plenty of growth opportunities in this region. US and Canada are the key contributors to the market. The US is implementing the hardware encryption technology in the military sector. This opens new opportunism for the overall market in North America. Further, North America will witness the highest profitability in the forecast year 2030. All these factors will continuously stir revenue for the Global Hardware Encryption Market. 

The Asia Pacific is the fastest growing hardware encryption market. The massive demand from tech companies is the crucial factor for high demand. Further, the data breach issues are higher in this region. Due to this, the deployment of the hardware encryption system is happening on ate wide scale. Europe is the next region with massive hardware encryption demand.

Hardware Encryption Market Competitive Landscape

The key players of the market are taking plenty of measures to develop the market in Europe. Product development and market expansion measures are happening in this region. Also, Europe will record the highest demand driving hardware encryption in the forecast period. 

The key players of the hardware encryption market are 

  • Thales e-security

  • Samsung Electronics

  • Win Magic Inc

  • Toshiba Corporation

  • NetApp

  • Western Digital Corporation 

  • Maxim Integrated Products, Inc

  • Kingston Technology

  • Kanguru Solutions 

Recent Developments 

August 2019

Western Digital launched the Ultrastar DC SN640 family optimized for extreme performance in mixed-workload applications. It is applied for SQL Server, Virtual desktops, MySQL virtual desktops, and other forms of business-critical workloads using hyper-converged infrastructures such as VMware vSAN and Microsoft Azure Stack HCI solutions. Compared to its predecessor, this encryption provides twice the performance in sequential writes. This new series supports a variety of system configurations and comes in three form factors with a wide range of capacity points.

January 2022

Samsung Electronics introduced its new fingerprint security IC S3B512C with enhanced security features. This enhanced solution is EMVCo certified for Common Criteria Evaluation Assurance Level (CC EAL) 6+. This aligns with Mastercard's latest Biometric Evaluation plan Summary specifications used in the biometric payment cards.

Report Overview 

  • Market overview highlights 

  • Analysis based upon COVID 19

  • Explanation upon the Market Dynamics

  • Value chain analysis

  • Market segmentation overview

  • The regional analysis

  • Competitive landscape analysis

  • Recent Developments

Report Scope:

Report Attribute/Metric Details
Market Size USD 1356.8 Billion
CAGR 4.60%
Base Year 2021
Forecast Period 2022-2030
Historical Data 2020
Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered Algorithm, Architecture, Product, Application and End-users
Geographies Covered North America, Europe, Asia-Pacific, and Rest of the World (RoW)
Key Vendors Thales e-security, Samsung Electronics, Win Magic Inc, Toshiba Corporation, NetApp, Western Digital Corporation , Maxim Integrated Products Inc, Kingston Technology, Kanguru Solutions
Key Market Opportunities The growth trend of the hardware encryption market is stable over the forecast period
Key Market Drivers The high requirement for data security, The volume of data breaches is increasing at an exponential pace

Frequently Asked Questions (FAQ) :

The hardware encryption market is predicted to grow at a 4.60% CAGR between 2022- 2030.

The hardware encryption market is predicted to reach USD 1356.8 Billion by 2030.

North America will lead the hardware encryption market.

Reduced cost of encryption and growing need for regulatory framework are driving the hardware encryption market growth.

Notable players profiled in the hardware encryption market include Thales e-security (U.S.), WinMagic Inc. (U.S.), NetApp (U.S.), Maxim Integrated Products, Inc. (U.S.), Kanguru Solutions (U.S.), Micron Technology Inc. (U.S.), Kingston Technology Corp. (U.S.), Western Digital Corporation (U.S.), Toshiba Corporation (Japan), Samsung Electronics (South Korea), and Micron Technology Inc. (U.S.).

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major players’ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
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