Hardware Encryption Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The global hardware encryption market was valued at USD 291.2 billion in 2022, and a CAGR of 20.1% is expected during the forecast period. Increasing demand for a technique or a process for the protection of digital data is driving significant growth in the market. It is a device that has a processor like a computer, and it is used to secure the data or to ensure its integrity and confidentiality.

Hardware encryption is independent of the host computer’s operating system to ensure data security and integrity even when the operating system is compromised. Increasing demand for encryption and decryption of large amounts of data in an organization is driving significant growth in the market. It often offers higher security and good performance in comparison to software-based encryption methods.

Encryption operations are offloaded to specialized hardware, reducing the burden on the specialized main processor. Increasing demand for the technique to protect data against higher levels of cyber-attacks is driving the growth of the market.

Impact of Covid-19

COVID-19 brought a significant slowdown in the market due to supply chain disruptions, a stringent lockdown, and social distancing. The unavailability of raw materials also caused a significant slowdown in the market. Increased adoption of remote work and virtual collaboration tools has driven demand for secure data storage and transmission solutions, leading to a potential uptick in the demand for hardware encryption products.

As organizations seek to protect sensitive information and seek to protect sensitive information accessed and shared remotely, they invest more in hardware encryption solutions to protect data. Economic uncertainties and budget constraints faced by businesses and consumers also dampened overall market growth during the pandemic. Data encryption is a very sensitive issue and is very much required within an organization.

Growth Drivers

With the rise in cyber threats and data breaches, organizations are increasingly prioritizing data security. Hardware encryption provides more robust and secure solutions compared to software-based solutions, driving demand for the hardware encryption market. The shift to remote work due to the COVID-19 pandemic has accelerated the demand for secure remote access and collaboration tools.

Hardware encryption solutions help organizations secure data accessed and shared by remote workers, driving market growth. The development of more efficient cryptographic algorithms and efficient encryption processors is driving innovation in the market significantly. The increasing cybersecurity threat and regulatory requirements are driving the growth of the market significantly. The rapid adoption of IoT devices across various industries has increased drastically, which has driven the growth of the market.

As more businesses transition to cloud-based storage solutions, there is an increased need for encryption to protect data stored and transmitted over the cloud. Hardware encryption modules and solutions are essential for securing data in the cloud environment. Hardware encryption helps companies comply with regulations like GDPR, CCPA, and others.

Segmentation

By Product

·         Hard Disk Drive

·         Solid State Drive

·         Universal Serial Bus

·         Inline Network Encryption

By Algorithm Standard

·         RSA

·         AES

·         Others

By Application

·         Consumer Electronics

·         IT and Telecom

·         Automotive and Transportation

·         Aerospace and Defense

·         Healthcare

·         Government and Public Utility

·         BFSI

·         Others

By End-Users

·         Industrial

·         Commercial

·         Residential

·         Government

Regional Outlook

·         Asia Pacific

·         North America

·         Latin America

·         Europe

·         Middle East and Africa

Hardware Encryption Market by Application Segmentation

On the basis of the application, the hardware encryption market is segmented into consumer electronics, IT and telecom, automotive and transportation, aerospace and defense, healthcare, government and public utilities, BFSI, and others. The hardware encryption market is witnessing rapid growth due to increasing concerns about data security and privacy.

With the rising volume of sensitive data being generated, stored, and transmitted, there is a rising need for hardware encryption. Encryption technologies for securing automotive systems, including infotainment systems, navigation, and vehicle-to-vehicle communication, are driving significant growth in the hardware encryption market. The increasing need to secure sensitive data in the defense sector, in military systems, and in aerospace is driving significant growth in the market. Encryption technologies are also used in securing critical infrastructure, such as in power plants, and water treatment facilities are driving significant growth in the market.

Encryption solutions for securing IoT devices and networks, including smart houses, wearable devices, and industrial IoT. The healthcare sector is the sector where data encryption is of the utmost requirement to secure the data of patients. Encryption technologies are used for securing communication channels, including email, messaging apps, and VoIP. Encryption solutions for securing data in all small and large organizations are required and are used as encryption solutions for securing data stored on servers, clouds, and devices.

Regional Outlook

On the basis of the regions, the hardware encryption market is segmented into 5 types: Asia Pacific, North America, Latin America, the Middle East and Africa, and Europe. North America is the leading segment and is expected to dominate during the forecast period due to the presence of many multi-national organizations and the increasing need for cryptographic solutions. Increasing demand for data encryption and decryption to maintain data integrity and confidentiality is the key factor behind the significant growth in the market.

The United States is the hub of all big multi-national organizations. Increasing demand for hardware encryption is driving the growth of the market significantly. Regulatory requirements, cybersecurity solutions, and technological infrastructure are the key factors behind the significant growth in the market. Increasing data security concerns and regulatory requirements are the key issues in Europe. Companies like Gemalto, Thales, and Kingston Technology were key players in this market. Increasing concerns about data security and regulatory compliance, along with the growing adoption of cloud computing and IoT devices, are driving the growth of the market.

Countries like China, Japan, and South Korea are key players in this market. The market is driven by factors such as robust data protection solutions, rising cyber threats, and government initiatives promoting data security measures. These are the key factors behind the growth of the market. The proliferation of smartphones and e-commerce activities together contribute to the demand for hardware encryption solutions in the region.

Key Players

·         Samsung Electronics Company Limited

·         International Business Machines Corporation

·         Western Digital Technologies

·         Toshiba Corporation

·         NetApp

·         Kingston Technology Limited

·         Broadcom Inc

·         Seagate Technology LLC

·         McAfee LLC

·         Other Players