Global Hardware Encryption Market Overview
The key driver impacting the hardware encryption market is the technological advancement and surging demand for consumer electronics such as smartphones, tablets, etc. For example, hardware encryption devices are using alternative technologies rather than traditional passwords such as biometrics (e.g., fingerprint scanning) or PIN numbers, making the process ideal for mobile devices. An important example is Apple’s TouchID fingerprint scanner for iPhones. Thus, the increasing demand for tablets and smartphones is expected to boost market demand. For instance, As per the economics help organization, from zero sales at the start of 2010, the tablet market has expanded to100 million units yearly by the end of 2013. Furthermore, tablet sales had reached around 200 million per year in the period 2013 -2016. Moreover, the emergence of portable storage devices to transfer files between computers and to backup important information contributes to the development of the hardware encryption market in the coming years.
According to Value Market Research, the global hardware encryption market size was valued at about USD 130 billion in 2020 and is estimated to grow at a CAGR of around 30% during the forecast period 2021 to 2027.
The growing popularity of hardware encryption for protecting sensitive data on portable devices such as laptops and USB flash drives is likely to augment the market demand in the forecast period. There are growing concerns connected to data privacy and data security, and the remarkable expansion of digital content is creating the need for hardware encryption. However, the high capital investment may hamper the market in the long run. Also, the lack of awareness among consumers linked with hardware encryption technology negatively benefits market development. Even though the current industry trends, like the growing adoption of cloud computing and the advent of cost-effective and compact hardware encryption techniques, are expected to offer several beneficial market opportunities to the key players.
The hardware encryption market is vast, with many local and global players. The hardware encryption market is extensive, with many international and regional players. The market leaders pursue diverse business strategies to enhance their market position, such as extending acquisitions, product portfolio, contracts, product upgrades, amalgamation to raise their market share globally. The key market players studied in the report Samsung Electronics Co. Ltd., Western Digital Corp., NetApp, Micron Technology Inc., Seagate Technology PLC, Kingston Technology Corp., KIOXIA, Kanguru Solutions, Intel, WinMagic Inc., IBM, Thales e-Security, Maxim Integrated Products, Inc, Mcafee, and Broadcom.
In this research report, the Hardware encryption market is segmented by algorithm & standard, architecture, product, application, and region.
Analysis by Algorithm & Standard:
By algorithm & standard, the report is categorized into rivest, Shamir, Adelman (RSA), advanced encryption standard (AES), and Others. The rivest, Shamir, and Adelman (RSA) segment dominate the algorithm & standard segment with over 35% share in 2020. It is the oldest and most extensively utilized public-key cryptosystem for securing data transmission. Moreover, growing concerns towards protecting private information and sensitive data due to rising data breach cases globally contribute to the Rivest, Shamir, and Adelman (RSA) segment growth in the forecast period.
Analysis by Architecture:
By architecture, the report is categorized into application-specific integrated circuits (ASIC) and field-programmable gate arrays (FPGA). The application-specific integrated circuit (ASIC) segment dominates the architecture segment with over 55% share in 2020. It is due to the extensive adoption of ASIC chips as IP cores for satellites, Microcontroller, ROM manufacturing, and different types of applications in the research and medical sectors. Moreover, ASIC chips are now being developed to specifically test and train AI algorithms to contribute to the growth of the application-specific integrated circuit (ASIC) segment in the forecast period.
Analysis by Product:
By product, the report is categorized into Hard Disk Drive (HDD), External HDD, Internal HDD, Solid-state Drives (SSD), Universal Serial Bus (USB), Up to 4GB, 5–16GB, 17–64GB, 65GB & Above, and Inline Network Encryptor. The Hard Disk Drive (HDD) segment dominates the product segment with over 40% share in 2020. The massive adoption of HDD for secondary storage, due to the ability to provide high storage capacity at reduced prices. Moreover, it can store and retrieves data much faster than a floppy disk, or CD/DVD, which contributes to the growth of the Hard Disk Drive (HDD) segment in the forecast period.
Analysis by Application:
By application, the report is divided into consumer electronics, IT & Telecom, automotive & transportation, aerospace & defense, healthcare, government & public utilities, BFSI, and others. The consumer electronics segment dominates with over 20% share in 2020. It is due to the growing adoption of consumer electronic devices among consumers across the globe. Moreover, the advent of the bring-your-own-devices (BYOD) culture across several organizations contributed to the growth of the consumer electronics segment in the coming years.
Analysis by Region:
In the regional outlook of the global hardware encryption market, the North America region dominates globally with a 30% market share in the forecast period. It is due to the growing cases of data breaches in the healthcare and financial sector in the U.S., with growing government initiatives to augment the adoption of hardware encryption in the healthcare sector. Moreover, it has several established hardware encryption manufacturing companies, which is contributing to the incredible market growth across North America.
Market Segmentation covered in the Report:
By Algorithm & Standard
- Rivest, Shamir, and Adelman (RSA)
- Advanced Encryption Standard (AES)
- Others
By Architecture
- Application-specific Integrated Circuit (ASIC)
- Field-programmable Gate Array (FPGA)
By Product
- Hard Disk Drive (HDD)
- External HDD
- Internal HDD
- Solid-state Drives (SSD)
- Universal Serial Bus (USB)
- Up to 4GB
- 5–16GB
- 17–64GB
- 65GB & Above
- Inline Network Encryptor
By Application
- Consumer Electronics
- IT & Telecom
- Automotive & Transportation
- Aerospace & Defense
- Healthcare
- Government & Public Utilities
- BFSI
- Others
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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