June 18, 2024
Hardware Wallet Market

The Growing Hardware Wallet Market is Driven by Digital Asset Adoption

Hardware wallets are physical key storages that protect digital assets like cryptocurrencies from malicious threats. They store private keys in a secure encrypted chip which cannot be hacked through internet or malware attacks. With growing popularity of bitcoin and other cryptocurrencies, the demand for secure storage of digital coins has increased tremendously. Hardware wallets provide a user-friendly interface to access and transact digital currencies safely without risking them online. The global hardware wallet market allows storage and transmission of bitcoins and other cryptos like Ethereum, Litecoin etc. in a hack-proof manner. Hardware wallets have simplified the world of cryptocurrencies by making private key management easy for general public. The global Hardware Wallet Market is estimated to be valued at US$ 350 million in 2023 and is expected to exhibit a CAGR of 8.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Demand for multi-coin hardware wallets is emerging as one of the key trends. Previously, most hardware wallets supported only bitcoin but now majority of hardware manufacturers are integrating multiple cryptocurrency support in their devices. Users prefer hardware wallets that can store various altcoins along with mainstream ones like BTC, ETH etc. This is driving hardware wallet providers to launch wallets compatible with over 50 cryptocurrencies. For example, Ledger and Trezor devices now support over 1000 coins each. This trend is expected to accelerate adoption of hardware wallets globally as cryptocurrency market matures with rising number of digital coins.

Porter’s Analysis
Threat of new entrants: Low. Significant startup costs pose barrier to entry due to technology costs and the need for expertise in security.
Bargaining power of buyers: High. Buyers have wide range of hardware options available from various established players.
Bargaining power of suppliers: Low. Established players source inputs from various suppliers giving them lower bargaining power.
Threat of new substitutes: Medium. Potential substitution from cloud-based storage solutions though security concerns persist.
Competitive rivalry: High. Market dominated by few global players who compete intensely on technology, security, pricing and customer experience.

Key Takeaways
The Global Hardware Wallet Market Demand is expected to witness high growth during the forecast period.

Regional analysis: North America dominates the market currently due to high demand for crypto assets and presence of major players in the region. Asia Pacific is expected to grow at fastest pace due to increasing investments in blockchain technology across countries like China, India and growing cryptocurrency adoption.

Key players: Key players operating in the Hardware Wallet market are Ledger, SatoshiLabs, Key, Coinkite, CoolWallet and Shift Crypto. Ledger and SatoshiLabs collectively hold over 50% market share currently. Ledger provides hardware wallets for bitcoin, ethereum and over 800 other cryptocurrencies targeting both individual and institutional investors.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it