Hardware Wallet Market Size
The global Hardware Wallet Market was valued at USD 94.61 million in 2017 and is expected to reach a value of USD 391.64 million by 2023 at a CAGR of 24.93% over the forecast period (2018 – 2023).
A cryptocurrency hardware wallet is a physical device that is used to store private keys offline in a encrypted device. These wallets allows the users to store the keys safely and protects information. With cryptocurrency market expansion in December 2017, a lot of new users got into cryptocurrency trading. As of April 2018, even holding a small amount of Bitcoin required significant investment and users are opting for more secure ways to hold their cyrpotocurrency. With the number of users of cryptocurrency increasing, Hardware wallet market is also expected to grow as people move to secure their cryptocurrency holding.
Companies producing hardware wallets are experiencing exponential increase in demand. With the number of people owning multiple cryptocurrencies increasing, the demand for wallets is also growing. Flexibility offered by these solutions, in comparison with software, web wallets and paper wallets is also impacting the growth of the market. With the investments in this market growing, companies are focusing on innovation with devices supporting multiple currencies and wireless technologies.
Increasing Investment in Cryptocurrency to Boost the Hardware Wallet Market
Investments in cryptocurrency increased from USD 18 billion in the January 2017 to more than 800 billion in January 2018. With this increase people have started to save their cryptocurrency away from exchanges with their private keys with themselves. With more than 250,000 bitcoin transaction happening every day on an average, Hardware wallets will become essential so as to provide security to the holdings. With this meteoric rise in cryptocurrency prices, many people have now started holding even small amounts of cryptocurrency in hardware wallets, so as not to lose it. With the cryptocurrency landscape expected to grow in the coming years, and the investments in this space expected to grow at a steady pace, the demand for hardware wallets is also expected to grow.
USB Hardware Wallets expected to maintain dominance over the forecast period
USB type of Hardware Wallets are the most general form of hardware Wallets accounting for over 88% of the market share. As these are the cheapest form of wallets, these are the most accepted type of hardware wallets. These types of wallets are expected to drive the volumes consumption Hardware Wallets, with many new users of the technology starting off with cheaper USB wallets. These wallets are also integrating displays, with screen USB wallets provide an additional level of security by showing the address and amount of transaction on the Wallet, which is gather interest among users. However, cost remains a major factor influencing the demand. Screen less USB wallets are the one which offers limited security, but they are cheap and good for beginners which is a major factor supporting the demand for these products. With the consumption of devices surging, companies in Asia-pacific region are coming up with new products to cater this segment, which is further driving the growth of the market.
Europe holds the largest share in Hardware Wallet Market
Europe is expected to have more than 26% of the global wallet users, while most of the hardware wallet producing companies are also based in Europe. Besides, this region has highest number of cryptocurrency exchange platform. Malta has crypto currency pro regulations and a lot of exchanges and people involved are moving to the country, driving the sales of hardware wallets in the country. However, new regulation in EU region are hampering the growth of the market. Countries like France, Uk, Germany have supported the call for stricter regulation within the crypto market. A lot of banks are blocking transaction for crypto currency to reduce their usage. As the access to crypto currency becomes difficult, it will become difficult for new users of get in the market, which might slowdown the growth of sales of hardware wallets in the region.
Key Developments of Hardware Wallet Market
- Jan 2018: Ledger raised USD 75 million in Series B round, led by Draper Esprit. The investment will enable the company to significantly scale up its operations as demand for their products increases at pace
- Aug 2017: KeepKey got acquired By ShapeShift, In all cash deal. With a focus on ease and security, the vertical integration of KeepKey and ShapeShift enables users to safely store assets on a KeepKey device, while trading these assets directly over the ShapeShift API from the device’s interface.
Major Players of Hardware Wallet Market: LEDGER SAS, SATOSHI LABS S.R.O. and COOLBITX TECHNOLOGY LTD., among others.
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