USD 234.8 billion
Hardware Encryption Market Size, Share, Growth Analysis, By Product (Hard Disk Drive, Solod State Drive), By Algorithm Standard (RSA, AES), By Architecture (ASCI, FGPA), By End Use, By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45E2227 |
Region:
Global |
Published Date: December, 2024
Pages:
197
|Tables:
90
|Figures:
77
Hardware Encryption Market Insights
Global Hardware Encryption Market size was valued at USD 234.8 billion in 2022 and is poised to grow from USD 288.4 billion in 2023 to USD 1128.9 billion by 2031, growing at a CAGR of 18.6% during the forecast period (2024-2031).
Digital data can be protected via hardware encryption, a hardware-based method. The main benefit of hardware-based solutions is that they do not have the normal problems associated with software-based solutions, such as performance decrease for assaults on the encryption key stored in memory. Hardware encryption performs better when security parameters and safeguard keys are used. For instance, Samsung introduced a Secure Element (SE) turnkey solution certified to Common Criteria Evaluation Assurance Level (CC EAL) 5+ for mobile devices. The new solution is reputed to offer a robust security system made up of a security chip (S3K250AF). Cold boots and brute-force assaults are protected from these encryption security features. A cheap approach to protecting data in a range of applications is hardware encryption. The requirement of legal compliances regarding the protection of private and sensitive data as well as the rise of digital content are what are driving the worldwide hardware encryption market growth. Increased complexity, risk of data breaches, and brute-force assaults, along with a major advantage over software encryption architecture, are expected to drive market growth in the next few years. The expansion of the worldwide hardware encryption market is being driven by decreased hardware encryption device prices as well as increased regulatory compliances for the protection of private and sensitive data. When offering prediction analysis of the country data, the availability and presence of international brands, the difficulties they encounter owing to strong or weak competition from local and domestic brands, the impact of domestic tariffs, and trade routes are all taken into account.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Wired
Fastest Growth
Wired
Growth Rate
18.6% CAGR
Global Hardware Encryption Market 2023-2030 ($ Bn)
Country Share for Asia Pacific Region- 2023 (%)
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Hardware Encryption Market Segmental Analysis
Global Hardware Encryption Market is segmented by Product, Algorithm Standard, Architecture, Application, End Use and Region. Based on Product, the market is segmented into Hard Disk Drive (Internal Hard Disk, External Hard Disk), Solid State Drive, Universal Serial Bus, Inline Network Encryptor. Based on Algorithm Standard, the market is segmented into RSA, AES, Others. Based on Architecture, the market is segmented into ASCI, FGPA. Based on Application, the market is segmented into Consumer Electronics, IT and Telecom, Automotive and Transportation, Aerospace and Defence, Healthcare, Government and Public Utilities, BFSI, Others. Based on End Use, the market is segmented into Industrial, Commercial, Residential, Government. Based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Analysis by Product
The dominant segment in the hardware encryption market is HDD Encryption. This is primarily due to the extensive use of hard disk drives in various devices, including desktop computers, laptops, servers, and data centers. HDD encryption solutions are widely adopted to secure sensitive data stored on these devices, ensuring data confidentiality and compliance with data protection regulations.
The growing segment in the hardware encryption market is Solid-State Drives (SSD) Encryption. As the demand for faster and more reliable storage solutions increases, SSDs are gaining popularity across industries. With the transition from HDDs to SSDs, the need for encryption solutions specifically designed for SSDs is growing. SSD encryption ensures the protection of valuable data stored on these high-performance storage devices, making it a growing segment within the hardware encryption market.
Analysis by Connectivity
The dominant segment in the connectivity segment of the hardware encryption market is Wired Encryption. Wired connections are widely used in enterprise networks, data centers, and critical infrastructure where the emphasis is on high-speed and secure data transmission. Wired encryption solutions offer robust security measures and are extensively deployed to protect sensitive data transmitted over wired networks. The dominant position of wired encryption is primarily due to its long-standing presence, reliability, and widespread adoption in various industries.
The growing segment in the connectivity segment of the hardware encryption market is Wireless Encryption. With the increasing adoption of wireless technologies, such as Wi-Fi and Bluetooth, in a wide range of devices and applications, the need for secure wireless communication has grown significantly. Wireless encryption solutions provide encryption capabilities that protect data transmitted over wireless channels, ensuring data confidentiality and integrity. As wireless connectivity continues to expand across industries and consumer devices, wireless encryption is experiencing significant growth within the hardware encryption market.
Global Hardware Encryption Market Size By Connectivity 2023(%)
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Hardware Encryption Market Regional Insights
The region with the biggest market share is anticipated to keep that position over the forecast period, expanding at the highest CAGR of 5.5%. The expansion of IT and telecom networks in China, South Korea, India, and other regional growing countries, coupled with the creation of various electronic device manufacturers, are all factors that have contributed to the growth of this market. A number of businesses producing consumer electronics, including smartphones, as well as suppliers of cutting-edge ICT technology are concentrated in Asia Pacific. For data security and protection, businesses in the Asia Pacific region are implementing hardware encryption technologies.
North America is growing in the hardware encryption market is the Solid-State Drives (SSD) Encryption segment. The region has a strong presence of technology-driven industries and a high adoption rate of advanced storage solutions like SSDs, leading to increased demand for encryption solutions tailored for SSDs.
Global Hardware Encryption Market Size By Geography, 2023-2030
- Largest
- Fastest
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Hardware Encryption Market Dynamics
Drivers
Increasing Adoption of Mobile Devices and BYOD Policies
- The proliferation of mobile devices and the adoption of Bring Your Own Device (BYOD) policies in workplaces create new challenges for data security. Mobile devices are vulnerable to theft, loss, and unauthorized access, making encryption a crucial security measure. Hardware encryption solutions, such as encrypted solid-state drives (SSDs) and self-encrypting drives (SEDs), provide mobile device users with robust data protection, allowing organizations to embrace mobile technologies without compromising security.
Increasing Demand for High-Performance and Low-Latency Encryption
- With the growing need for high-performance computing and low-latency data processing, hardware encryption offers an advantage over software-based encryption solutions. Hardware-based encryption solutions provide faster encryption and decryption processes, ensuring minimal impact on system performance. Industries such as banking, finance, healthcare, and defence require high-performance encryption to meet their stringent security and performance requirements.
Restraints
Limited Scalability
- Hardware encryption solutions may face limitations in scalability, especially in large-scale enterprise environments. Adding encryption capabilities to a large number of devices, servers, or endpoints may require significant investment and effort. Scaling hardware encryption infrastructure across geographically distributed locations can also present logistical challenges. As organizations grow or undergo expansions, the scalability of hardware encryption solutions becomes an important consideration.
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Hardware Encryption Market Competitive Landscape
The competitive landscape of the hardware encryption market gives information by competitor. Included information includes a company overview, financials, revenue generated, market potential, research and development investments, new market efforts, global presence, production sites and facilities, production capacity, company strengths and weaknesses, and product launches.
Top Player’s Company Profiles
- Western Digital Corporation (United States)
- Samsung Electronics Co., Ltd. (South Korea)
- Micron Technology, Inc. (United States)
- Seagate Technology PLC (Ireland)
- Toshiba Corporation (Japan)
- Kingston Technology Company, Inc. (United States)
- Intel Corporation (United States)
- Gemalto N.V. (Netherlands)
- NetApp, Inc. (United States)
- Kanguru Solutions (United States)
- WinMagic Inc. (Canada)
- Thales Group (France)
- Apricorn, LLC (United States)
- SecureData Group (United Kingdom)
- Kanguru Solutions (United States)
- iStorage Limited (United Kingdom)
- Imation Corp. (United States)
- ADATA Technology Co., Ltd. (Taiwan)
- Maxim Integrated Products, Inc. (United States)
- Micronova Embedded Technologies B.V. (Netherlands)
- iXsystems, Inc. (United States)
Recent Developments
- In March 2023, Thales announced that it had launched a new hardware security module (HSM) called the nShield HSM 9000. The new HSM is designed to provide high-level security for a variety of applications, such as data encryption, digital signatures, and key management.
- In February 2023, Gemalto announced that it had launched a new HSM called the SafeNet Luna HSM 8000. The new HSM is designed to provide high-level security for a variety of applications, such as data encryption, digital signatures, and key management.
- In January 2023, Cryptography Research announced that it had launched a new HSM called the HSM-1000. The new HSM is designed to provide high-level security for a variety of applications, such as data encryption, digital signatures, and key management.
Hardware Encryption Key Market Trends
- SEDs are storage devices, such as solid-state drives (SSDs) and hard disk drives (HDDs), that have built-in encryption capabilities. They encrypt data in real-time, providing automatic protection without the need for additional software or hardware. The increasing adoption of SEDs is driven by their ease of implementation, enhanced data security, and compatibility with existing systems. SEDs are becoming a popular choice for organizations seeking hardware-based encryption solutions.
Hardware Encryption Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our analyses, the global hardware encryption market has witnessed substantial growth due to increasing concerns about data security, rising cyber threats, and stringent data protection regulations. The market size has been expanding steadily, driven by the growing adoption of hardware encryption solutions across various industries. Factors such as the proliferation of digital data, the rise in data breaches, and the increasing focus on securing sensitive information have fuelled the demand for hardware encryption. The global hardware encryption market is driven by the need for robust data security, regulatory compliance, and the increasing awareness of data privacy. However, challenges related to cost, implementation complexity, and performance impact need to be addressed to unlock the market's full potential. With advancements in technology and continuous efforts to improve encryption solutions, the hardware encryption market is poised for significant growth in the coming years.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 234.8 billion |
| Market size value in 2031 | USD 1128.9 billion |
| Growth Rate | 18.6% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Hardware Encryption Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Hardware Encryption Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Hardware Encryption Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Hardware Encryption Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Hardware Encryption Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Hardware Encryption Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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