Hardware Wallet Market Overview
The Hardware Wallet Market Size was valued at USD 245.3 million in 2021. The Hardware Wallet market industry is projected to grow from USD 285.1 million in 2022 to USD 1,449.2 million by 2030, exhibiting a compound annual growth rate (CAGR) of 22.5% during the forecast period (2022 - 2030).
Hardware wallets may be considered of as very simplified computers that exist simply to do a few simple but important activities, sometimes with only one or two buttons and occasionally a tiny screen. Hardware wallets have no method of connecting to the internet on their own, making it nearly difficult for hackers to access their contents. When a user spends cryptocurrency, swaps assets, or otherwise sends and receives assets to/from a wallet, the transaction must be "signed" using their private key. Transactions with a hardware wallet are signed within the device itself through a crypto bridge, which is a basic piece of software that allows a hardware wallet to connect to the blockchain.
The crypto bridge delivers unsigned transaction data to the device when a user connects their hardware wallet to a PC. The hardware wallet then uses the private key to sign the transactions and uploads them back to the bridge, which broadcasts them to the rest of the blockchain network as complete. A user's private key is never removed from the hardware wallet during this operation.
FIGURE 1: HARDWARE WALLET MARKET 2018-2030
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Covid-19 Analysis
With the rise of the cryptocurrency industry in December 2017, many new people learned about blockchain and cryptocurrencies and began to investigate them. As a result, the number of blockchain and cryptocurrency wallet users has increased significantly. According to a 2021 Blockchain.com poll, there are more than 68.42 million blockchain wallet users. The rapidly increasing demand for cryptocurrencies throughout the epidemic has affected the hardware wallet business positively. Cryptocurrencies, such as Bitcoin, are rapidly transitioning from risky investment assets to payment mechanisms. As the COVID-19 epidemic has prompted increased requests for payment dematerialization, there is a rising focus on payment patterns and the financial life cycle.
Post-pandemic scenario
Consumer and businesses now have adopted the use of hardware wallets as a better option than software wallets in order to protect private keys from the hackers. Post-pandemic is expected to start a new era of hardware wallets in most economies.
Hardware Wallet Market Trends
Exponential Growth in Cryptocurrency Transaction Worldwide
Because of the substantial growth in transaction volume, cryptocurrency is one of the trendiest topics nowadays. Today, many companies throughout the world accept various types of cryptocurrencies as payment for goods and services. In recent years, the value of cryptocurrencies has reached enormous heights, resulting in large market capitalization. According to the most recent data, the worldwide crypto market size is USD 2.61 trillion, a 3.86% gain over the previous day. The everyday transaction is worth billions of dollars and is growing by the day. Furthermore, as the volume of transactions grows, so do the malware assaults linked with it, which may be described as the most significant hazard. Because software-based wallets are the most vulnerable to attacks, hardware-based wallets are gaining favor in order to secure bitcoin sensitive keys.
Hardware Wallet Market Segment Insights
Hardware Wallet Connection Type Insights
The Hardware Wallet market segmentation, based on connection type, includes Near-field Communication (NFC), Bluetooth, USB, and Others. USB type is expected to exhibit the fastest CAGR growth during the projected period.
In May 2022An NFT-branded Nano X hardware wallet was created by OnChainMonkey (OCM) by Metagood and LEDGER. Together, the two firms are on a quest to teach communities about crypto, blockchain, and Web3 while being safe and secure. OnChainMonkey, developed by Metagood, is the first NFT profile picture (pfp) collection produced on-chain in a single transaction. The collection of 10,000 randomly generated NFTs is led by an experienced team that includes CEO Danny Yang, who founded Maicoin, Taiwan's largest cryptocurrency exchange; COO Amanda Terry, a digital media business development executive at Twitter and NBC; and Chairman Bill Tai, a legendary venture capitalist.
Hardware Wallet End User Insights
Based on the end-user, the market has been bifurcated into individual and businesses. Individual holds the largest share within the market and is expected to exhibit the fastest growth during the projected period. Hardware wallets are preferred by more security-conscious crypto users or those with significant assets to safeguard. This desire reflects the high level of security that a hardware wallet provides users who want to handle custody themselves. Due to security concerns, crypto best practices state that one should never store large sums of bitcoin in an online "hot" wallet.
FIGURE 2: HARDWARE WALLET MARKET SHARE BY END USER, 2021 vs 2030 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Hardware Wallet Distribution Channel Insights
Based on the distribution channel, the market has been segmented into online and offline. Online distribution channel is expected to witness fastest CAGR growth during the forecast period.
In January 20231inch Network, a popular decentralized exchange (DEX) aggregator, is expanding its ecosystem of products and initiatives with the release of its own multi-coin hardware wallet. With the help of a grant from the 1inch Foundation, the company began developing the hardware wallet in early 2022 and plans to commercialize it in Q4 2023. Soon, the company also intends to proceed with development and security advancements. 1inch Network, as a DEX aggregator that selects the best deal for a certain pair, offers a location to swap tokens on the Ethereum (ERC-20), BNB Chain (BEP-20), Avalanche, Fantom, and Polygon networks, among others.
Hardware Wallet Regional Insights
Asia-Pacific region is expected to grow with the fastest CAGR rate during the forecast period. The region has witnessed significant growth in cryptocurrency transactions and is expected to exhibit the noteworthy growth during the projected period. The region also has witnessed a surge in malware attacks among online wallets, which is a major driving factor for the projected growth. Moreover, the region has the presence of several prominent vendors such as BitLox (Hong Kong), CoolBitX Technology Ltd. (Taiwan), ELLIPAL Limited (Hong Kong), Penta Security Systems Inc. (South Korea), and CoolWallet (China) which have shown noteworthy growth in the sales of hardware wallets. The countries such as China, Japan, India, South Korea, and Australia are the major growth engines of the APAC region's market growth. Besides, Southeast Asian countries such as Malaysia and Singapore also have emerged as the major market for the hardware wallet in recent years.
Hardware Wallet Key Market Players & Competitive Insights
The hardware wallet market is highly competitive with the presence of several leading vendors. However, some of these players have created goodwill within the market by offering advanced features at affordable prices. ARCHOS (France), BitLox (Hong Kong), CoolBitX Technology Ltd. (Taiwan), Ledger SAS (France), Satoshi Labs SRO (Czech Republic), ShapeShift (US), and SecuX Technology Inc. (Taiwan) are the prominent players within the market which have captured the largest client base across the globe. Some of these prominent players have adopted some organic and inorganic strategies such as mergers, acquisitions, partnerships, strategic alliances, and product launches among others in order to gain a competitive advantage. Moreover, some of the leading players are constantly focusing on technological advancements so as to offer advanced and upgraded features as per the dynamic consumer needs. The vendors compete in terms of product pricing, interface, features, quality, among other factors. Technological advancements are mandatory for new entrants to compete against the leading giants within the market.
Key Companies in the Hardware Wallet market include
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ARCHOS (France)
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BitLox (Hong Kong)
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CoolBitX Technology Ltd. (Taiwan)
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ELLIPAL Limited (Hong Kong)
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Ledger SAS (France)
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OPOLO SARL (Luxembourg)
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Satoshi Labs SRO (Czech Republic)
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ShapeShift (US)
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Shift Crypto AG (Switzerland)
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Sugi (zSofitto NV) (Belgium)
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Coinkite Inc. (Canada)
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SHIFT Cryptosecurity (Switzerland)
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Penta Security Systems Inc. (South Korea)
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CoolWallet (China)
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NGRAVE (Belgium)
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SecuX Technology Inc. (Taiwan)
Hardware Wallet Industry Developments
October 2021International blockchain security company CoolBitX, creator of the CoolWallet Pro, the Bluetooth hardware wallet for DeFi users, announced a collaboration with Crypto.com, the world’s fastest-growing crypto platform. CoolWallet’s official website has integrated Crypto.com Pay, a powerful payment solution that offers cashback and other rewards to users for paying and receiving payment in cryptocurrency and also provides integrated support for the CRO token.
June 2021French startup Ledger has raised a USD 380 million Series C funding round led by 10T Holdings. Now the company has reached a valuation of USD 1.5 billion. Other investors in the funding round include existing investors Draper Associates, Cathay Innovation, Draper Dragon, Draper Esprit, DCG, Korelya Capital, and Wicklow Capital.
February 2021GRAY, a Singapore-based company announced the expansion of its crypto hardware wallet line, the CORAZON, in aluminum variants. The CORAZON is created in partnership with Satoshilabs the creators of Trezor, the first and leading hardware wallet – now available for pre-order for USD 599.
Hardware Wallet Market Segmentation
Hardware Wallet Connection Type Outlook
Hardware Wallet End-User Outlook
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Individual Users
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Businesses
Hardware Wallet Distribution Channel Outlook
Hardware Wallet Regional Outlook
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Europe
- Germany
- France
- UK
- Rest of Europe
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Asia-Pacific
- China
- Japan
- India
- Rest of Asia-Pacific
