Cryptocurrency Hardware Wallet Market to Reach $3.6 Billion By 2031

A report by Allied Market Research forecasts a rise in demand owing to improved security and and technological advances.

The global cryptocurrency hardware wallet market generated $442.6 million in 2021, and is projected to reach $3.6 billion by 2031, growing at a CAGR of 23.7% from 2022 to 2031, a report published by Allied Market Research reveals.

According to the research, increased use of NFC in cryptocurrency wallets and the enhanced security of cryptocurrency hardware wallets are driving the growth of the market. In addition, the rise in demand for high transparency of distributed ledger technology across the commercial sector helps to propel the growth of the market. However, high cost of installing cryptocurrency hardware wallet is a major factor hampering the growth of cryptocurrency hardware wallet market. On the contrary, advances in technology and adoption of AI and machine in the digital currency industry is expected to provide lucrative growth opportunities in the coming years.

Based on hardware component, the ASIC segment held the largest market share in 2021, holding nearly two-fifths of the global market, and is expected to maintain its leadership status during the forecast period. The FPGA segment, on the other hand, is expected to cite the fastest CAGR of 25.9% during the forecast period.

Based on security method, the pin segment held the largest market share in 2021, holding nearly one-third of the global market, and is expected to maintain its leadership status during the forecast period. The biometric security segment, on the other hand, is expected to cite the fastest CAGR of 25.7% during the forecast period.

Based on type, the USB connectivity type segment held the dominating market share in 2021, holding nearly one-third of the global market, and is expected to maintain its leadership status during the forecast period. The NFC connectivity segment, on the other hand, is expected to cite the fastest CAGR of 25.7% during the forecast period.

Based on region, the market across the Asia-Pacific region held the dominating market share in 2021, holding more than two-fifths of the global market, and is expected to maintain its leadership status during the forecast period. The North America region, on the other hand, is expected to cite the fastest CAGR of 26.2% during the forecast period.