Global Hardware Encryption Market Insights Forecasts to 2032

• The Global Hardware Encryption Market Size was valued at USD 293.8 Billion in 2022.
• The Market is Growing at a CAGR of 17.42% from 2022 to 2032
• The Worldwide Hardware Encryption Market is expected to reach USD 1463.72 Billion by 2032
• North America is expected to grow the fastest during the forecast period

The Global Hardware Encryption Market Size is expected to reach USD 1463.72 Billion by 2032, at a CAGR of 17.42% during the forecast period 2022 to 2032.

Hardware encryption is a method for encrypting data that employs a specialized and distinct processor. It is simpler and cheaper for companies of all sizes given that it does not necessitate the set-up of additional software. In the larger context, it has substantially higher processing capacity and speed. This further includes more rapid algorithm processing, tamper-proof or tamper-resistant key storage, and anti-unauthorized data security. The key benefits of employing hardware encryption rather than software encryption on SSDs are that the hardware encryption function is maximized along with the remaining capacity of the device. Furthermore, consumers can also utilize hardware encryption to protect sensitive data throughout transmission and data storage. In addition to technological improvements, major market companies have introduced alternative hardware-encrypted solutions to meet rising storage demands, creating a potential hardware encryption market potential.

The major vendors competing in the hardware encryption market are Micron Technology, Inc., Intel Corporation, Samsung Electronics Co., Ltd., Toshiba Corporation, Symantec Corporation, and IBM Corporation. To retain their market position and generate industry growth, these companies are focusing on R&D, product innovation, and strategic collaborations.

For example, In March 2023, Samsung Electronics released its Powerful and Massive 4 TB T7 Shield Portable SSD with Outstanding Performance, Unprecedented Speed, and Durability; Ideal for Creative Professionals and Outdoor Users. AES 256-bit hardware encryption is supported. This is much faster and more secure than a software-based encryption method, in which data is encrypted and decrypted by a program.

Driving Factors

Increasing concern over data safety and integrity, compliance with confidentiality and security rules and standards, and the creation of digital content are some of the reasons driving the rapid development of the hardware encryption market. With the global adoption of the "smart city" idea, the usage of technology for communication and information has grown increasingly digitized, resulting in the improvement of digital content. To improve the overall standard of life, these smart cities use IoT technology such as radio-frequency identification (RFID) sensors, cloud-based technology, and wireless connectivity to collect and analyze data about environmental variables, mobility, drinking water supply, public safety, and healthcare. As smart cities flourish, there is rising concern about privacy breaches and the sharing of safe information or archiving. Furthermore, the growing use of smartphones, e-cash, e-commerce, recording devices, and digital marketing is contributing to the growth of internet-based materials. As a result, the projected expansion of the hardware encryption market is being driven by the proliferation as well as administration of internet-based data.

The key factors influencing the growth of the global hardware encryption market are a rise in legal requirements with regard to the safeguarding of sensitive and confidential information, a decrease in the prices of hardware encryption products, a surge in the widespread adoption of electronic devices such as mobile phones and tablets, and an improvement in both the complexity and the number of hacking attempts and brute-force attacks. The median price of hardware encryption devices has been reduced as a result of technological developments, and this trend is anticipated to persist in the years to come. Additionally, hardware-enforced security provides a low-cost approach with sufficient security for safeguarding against emerging breaches presented by hyper-connectivity. Regardless of the modest price disparity, the majority of customers favor hardware-encrypted devices over software encryption, fueling the global hardware encryption growth.

Market Segmentation

By Application Insights

The consumer electronics segment accounted the largest revenue share of more than 56.2% over the forecast period.

On the basis of Application, the global hardware encryption market is segmented into IT & Telecom, automotive, BFSI, manufacturing, consumer electronics, aerospace & defense, industrial, government & public utilities, transportation, healthcare, and others. Among these, consumer electronics are dominating the market with the largest revenue share of 56.2% over the forecast period. Hardware encryption is utilized in electronic devices such as computer desktops, cellphones, notebook computers, laptop computers, tablets, and so on. Hardware encryption can be implemented on any electronic device with digital storage, whether magnetically or solid-state. SSDs and HDDs are the most commonly utilized components for hardware encryption in consumer electronic devices.

By Product Type Insights

The solid state drive segment is dominating the market with the largest revenue share over the forecast period.

On the basis of product type, the global hardware encryption market is segmented into the external hard disk drives, internal hard disk drives, solid state drive, inline network encryptor, USB flash drive, and others. Among them, the solid-state drive category has the greatest revenue share of 38.6% over the forecast period, owing to the increasing number of hacking incidents and the ongoing increase of internet traffic fueling the market growth. In response to the COVID-19 epidemic, work-from-home directives caused a short-term surge in PCs along with other remote work solutions. It is expected to increase demand for solid-state drives for main storage and near-line HDDs for bulk backup storage. Furthermore, consumers from various industries have been drawn to the utilization of solid-state disks due to the product's usefulness and accessibility.

Regional Insights

Asia Pacific dominates the market with the largest market share over the forecast period.

Asia Pacific is dominating the market with more than 38.7% market share over the forecast period. Factors such as a large population density, increased household disposable income, and an explosive rise in the region's middle-class population are driving the hardware encryption market growth. Furthermore, hardware encryption is widely used in industries such as healthcare, banking and finance, automotive and transportation, and military and the aerospace industry, boosting the growth of the hardware encryption market. Additionally, Asia Pacific is a center for various companies that manufacture consumer electronics, such as smartphones, as well as innovative ICT technology suppliers. For data security and protection, companies in the Asia Pacific are implementing hardware encryption technologies. As a result of the aforementioned factors, the Asia Pacific hardware encryption market is predicted to grow rapidly.

North America, on the contrary, is expected to grow the fastest during the forecast period. The advent of cloud-based services and the expansion of IoT technologies have also resulted in some major elements supporting regional growth. Furthermore, the presence of prominent companies which include Thales e-Security, McAfee, Kingston Technology Corporation, Micron Technology, and others is projected to drive the hardware encryption market throughout the projection period.

List of Key Market Players

• Broadcom Inc.
• Samsung Electronics Co., Ltd.
• Kanguru Solutions
• Maxim Integrated Products Inc.
• Toshiba Corporation
• WinMagic Inc.
• Western Digital Technologies, Inc.
• Seagate Technology Holdings PLC
• NetApp, Inc.
• Kingston Technology Corporation
• Intel Corporation
• Symantec Corporation
• Micron Technology, Inc.
• IBM Corporation
• KIOXIA Holdings Corporation

Key Market Developments

• On April 2023, WinMagic, an encryption and authentication provider, has announced a collaboration with Carahsoft Technology Corp., The Trusted Government IT Solutions Provider®. Carahsoft will serve as WinMagic's Master Government Aggregator®, bringing the company's industry-leading authentication and encryption solutions to the Public Sector via Carahsoft's reseller partners, NCPA and OMNIA Partners contracts.

• On January 2023, Kanguru, a Secure Data Storage provider based in the United States, announces the addition of an innovative and market-proven USBtoCloud® portable software solution by ClevX to its industry-leading Defender® product line of Hardware Encrypted USB Drives. Consumers may now use the integrated USBtoCloud software to automatically backup their Defender drives to their favorite cloud storage provider, such as OneDrive, OneDrive for Business, Amazon S3, Google Drive, Dropbox, Box, and others, as well as NAS. All data in transit and in the cloud may be encrypted using the app's FIPS-compliant AES256Bit encryption engine, giving an extra layer of protection for data kept in the cloud.

• On April 2022, Samsung Electronics has introduced its newest external storage device, the T7 Shield Portable Solid State Drive (PSSD), which offers great performance and dependability in a credit card-sized design. Furthermore, the T7 Shield offers enhanced security (*256-bit AES, Advanced Encryption Standard) with hardware encryption, ensuring that consumer data is safe even if the T7 shield is lost.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2032. Spherical Insights has segmented the Global Hardware Encryption Market based on the below-mentioned segments:

Hardware Encryption Market, Application Analysis

• IT & Telecom
• Automotive
• BFSI
• Manufacturing
• Consumer Electronics
• Aerospace & Defense
• Industrial
• Government & Public Utilities
• Transportation
• Healthcare
• Others

Hardware Encryption Market, Product Type Analysis

• External Hard Disk Drives
• Internal Hard Disk Drives
• Solid State Drive
• Inline Network Encryptor
• USB Flash Drive
• Others

Hardware Encryption Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa.