Dublin, November 8, 2021 (GLOBE NEWSWIRE) - The "Hardware Wallet Market: Growth, Trends, and Forecasts (2021 - 2026)" the report has been added to ResearchAndMarkets.com's offering.
The global hardware wallet market was valued at USD 202.40 million in 2020. It is expected to be valued at USD 877.69 million by 2026, registering a CAGR of approximately 29.24% during the forecast period (2021 -2026).
The growing demand for cryptocurrencies during the pandemic has positively influenced the hardware wallet market. Cryptocurrencies, like Bitcoin, are gradually transitioning from uncertain investment instruments to payments. There is increasing attention to payment habits and the financial life cycle, as the COVID-19 pandemic has sparked more calls for the dematerialization of payments.
Key market trends
NFC type to maintain a meaningful stake
- The adoption of cryptocurrency in real-world stores is progressing slowly, although it has the potential to be a convenient, fast and secure way to pay for goods. Cryptocurrencies, such as Bitcoin, can be used in real-world environments in a timely manner without the need for a banking license. They can also be used to save merchants money and to safeguard customer privacy.
- NFC technology enables flexible use of cryptocurrencies by providing storage media. More importantly, it allows the use of crypto assets in daily purchases. By using this technology, cryptocurrency can be turned into a simple form of payment and it works by simply pairing it with a mobile application.
- By using NFC, payment is allowed even if the payee or payer is not connected to the Internet, depending on the type of payment request. This scheme is beneficial for tourists who are unwilling to pay high roaming fees or are in places where internet reception is unreliable or not present at all.
- Furthermore, BitPay is a company that offers Bitcoin trading solutions and wallets for end users. Like Apple, BitPay added NFC support to its PoS (Point of Sale) software in 2015, allowing users to pay bills with the help of the Android wallet, with just one tap.
- However, in BitPay, NFC is a mere way of transmitting the data traditionally provided by a QR code containing the amount, the payment address, and a transaction note. The Android app does not transmit a complete Bitcoin transaction via NFC.
Asia Pacific is expected to witness significant growth
- The Asia Pacific region has the fastest growing market for hardware wallets, due to the growing adoption of cryptocurrencies in the region and the growing trend of the digital and cashless economy in countries such as India, Japan and South Korea.
- Although the ban on digital currency exchange in China may hamper regional growth, the growing acceptance of the digital economy in the rest of the region, especially in India, Japan, Australia and South Korea, is developing a massive market for cryptocurrencies. . These countries are also among the highest adopters of hardware wallets in the region.
- The increasing number of cyberattacks in the cryptocurrency market in the region is also driving the growth of the regional hardware wallet market. For example, in September 2020, KuCoin, a Singapore-based cryptocurrency exchange, disclosed a security incident that resulted in the unauthorized transfer of approximately $ 150 million in digital assets.
- In October 2020, Huawei announced that its next Mate40 smartphone series could consist of a combined hardware wallet for China's central bank's digital currency, the Digital Yuan. According to an official Huawei post on Chinese microblogging website Weibo, this is anticipated to be the first smartphone to feature such a wallet on October 30. The post also ensures that users will protect and control their anonymity and conduct dual transactions offline. These allow mobile phone users to transfer funds simply by touching their devices together, even if they are both offline. These initiatives are expected to drive the other smartphone companies to adopt hardware wallets in their products.
- South Korea is emerging as one of the important markets for a hardware wallet, thus driving regional growth. Its top two crypto exchanges, Upbit and Bithumb, are among the top 25 exchanges globally and are combined by a daily trading volume of over $ 200 million. The region is also innovating in NFC hardware wallets, which are also emerging in the global market.
- For example, South Korean fintech company Keypair launched a new hardware wallet. The company's Keywallet Touch has an unusual design in that it is shaped like a credit card and uses NFC technology. The company says the device's smart card chipset supports cryptocurrencies, such as Bitcoin Cash, Ethereum, Bitcoin core, and Litecoin, while also providing FIDO Universal 2nd Factor Authentication (U2F).
Competitive landscape
The hardware wallet market is highly consolidated as various global and regional players compete for attention in a somewhat contested market space. Since the studied market presents low barriers to entry for new players, several new entrants have gained traction in the market by offering feature-rich products at competitive prices. The studied market is characterized by increasing levels of product penetration, moderate / high product differentiation and high levels of competition. Some of the recent developments in the market are:
- April 2020: ShapeShift acquired Portis, an Israeli startup that created the leading Web3 wallet SDK for crypto application developers to integrate wallet functionality into their product.
- March 2020: CoolBitX Limited received $ 16.75 million in its Series B funding round, led by Japanese financial group SBI Holdings, with participation from the Taiwan National Development Fund, Korean cryptocurrency exchange BitSonic, and another Japanese financial group, Monex. With this funding, CoolBitX establishes its strategy of expanding the presence of the Sygna product line beyond the APAC region as the first on-market solution that is FATF compliant for Virtual Asset Service Providers (VASP) worldwide. . ?
Mentioned companies
- Ledger SAS
- Satoshi Labs SRO
- ShapeShift AG
- Coinkite Inc.
- CoolbitX Ltd.
- SHIFT Crypto Security
- Penta Security Systems Inc.
For more information on this report, visit https://www.researchandmarkets.com/r/xsishx
