Market Overview The hardware wallet market was valued at USD 128. 69 million in 2018 and is expected to reach USD 495. 9 million by 2024 at a CAGR of 24. 93% over the forecast period (2019 – 2024).
New York, Feb. 24, 2020 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Global Hardware Wallet Market – Growth, Trends and Forecast (2019 – 2024)” – https://www.reportlinker.com/p05865781/?utm_source=GNW
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.
Investments in cryptocurrency increased from USD 18 billion in January 2017 to more than USD 800 billion in January 2018. With this rise in investments, people started saving their cryptocurrency from exchange with their own private keys. With more than 250,000 bitcoin transactions taking place every day, on an average, hardware wallets are anticipated to become essential to provide security to the holdings.
Cryptocurrencies bring with them security risks for hardware wallets. While hardware wallets offer increased security and trust for the data processed and stored in the device, they also need to be protected from a wide variety of attacks
In June 2018, the US Federal Reserve Bank recognized cryptocurrency, and four cryptocurrencies were added to the Federal Reserve Bank of St Louis, one of twelve regional banks in the US central banking system. The four cryptocurrencies added were Bitcoin, Litecoin, Bitcoin Cash, and Ethereum. With the country being at the core of the cryptocurrency industry, the consumption of hardware wallets is expected to remain strong. The increasing participation of other industries is further expected to drive the growth of the market studied in the country during the forecast period. Also, the increase in demand for hardware wallets in South Korea is anticipated to impact the position of Asia-Pacific in the market studied, globally.
Scope of the Report
Hardware wallet is a special type of bitcoin wallet, which stores the user’s private keys in a secure hardware device. They have major advantages over standard software wallets:
1) Private keys are often stored in a protected area of a microcontroller, and cannot be transferred out of the device in plaintext.
2) They are immune to computer viruses that steal from software wallets.
3) They can be used securely and interactively; private keys never need to touch any potentially vulnerable software.
Key Market Trends
NFC Type to Hold Significant Share
The adoption of cryptocurrencies in real-world stores is progressing slowly, even though it has the potential of being a convenient, fast, and secure way of paying for goods. Cryptocurrencies, such as Bitcoin, can be used in real-world environments in a convenient matter, without requiring a banking license. They can also be used to save merchant money and safeguard the privacy of customers.
By utilizing NFC, payment is allowed even if either the payee or payer is not connected to the Internet, depending on the type of payment request. This scheme is particularly useful for tourists who are not willing to pay high roaming fees or are at places where the Internet reception is unreliable or not present at all.
Similar to Apple, BitPay added NFC support to its PoS (Point of Sale) software, allowing users to pay a bill with the aid of the Android wallet with only a single tap, in 2015. However, in the case of BitPay, NFC is a mere way to transmit the data traditionally provided by a QR-Code, containing the amount, payment address, and a transaction memo. The Android app does not transmit a complete Bitcoin transaction over NFC.
Asia-Pacific Expected to Witness Significant Growth
The region is the fastest-growing market for hardware wallet, owing to the growing adoption of cryptocurrency and the increasing trend of the digital and cashless economy in countries like India, Japan, and South Korea.
Though the ban on digital currency exchange in China can hinder the regional growth, growing digital economy acceptance in the rest of the region, especially in India, Japan, Australia, and South Korea, is developing a massive market for cryptocurrencies in Asia-Pacific.
The country’s security firms are also exploring the possibility of establishing and operating a joint cryptocurrency exchange in Bangkok. These developments indicate a positive approach of the government toward cryptocurrency, and are expected to drive the demand for the market studied in the region.
The hardware wallet market is moderately fragmented. The market studied comprises of several global and regional players, vying for attention in a fairly-contested market space.
As the market studied poses low barriers to entry for new players, several new entrants have been able to gain traction in the market, by offering products, which are rich in features, at competitive prices. The market studied is characterized by increasing levels of product penetration, moderate/high product differentiation, and high levels of competition.
The firm concentration ratio is expected to record robust growth over the forecast period. This can be partly attributed to the lucrative opportunity in the market with high profits. Some of the key players in the market include Ledger SAS and SatoshiLabs SRO. Some of the key developments in the area are:
In October 2017, Gemalto and Ledger announced a technology partnership, to deliver security infrastructure for crypto asset applications. The joint Gemalto and Ledger solution was an integration of Ledger’s blockchain open Ledger operating system (BOLOS) into Gemalto’s SafeNet hardware security module (HSM).
In December 2017, SatoshiLabs SRO introduced and expanded cryptocurrency support in Trezor firmware 1.6.0.
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