HARDWARE WALLET MARKET ANALYSIS

Regional Analysis

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The North America region currently dominates the global hardware wallet market and is estimated to hold the market share of 38.91% in 2024, due to high consumer awareness about cryptocurrency security and investments made by hardware wallet manufacturers in the region. Companies like Ledger and Trezor have established their headquarters in the U.S. to cater to the growing demands and leverage the skilled talent pool. Due to the increased investments in security solutions and presence of major hardware wallet vendors in key areas like Silicon Valley, the hardware wallet adoption rate in North America surpasses other regions. Moreover, the open regulations regarding crypto assets ownership and active trading on exchanges have propelled the demand for secure on-device crypto storage like hardware wallets.

Europe comes next only to North America in terms of hardware wallet usage, mainly driven by countries like Germany and the U.K. Many top cryptocurrency exchanges and trading platforms are Europe-based which has enhanced overall crypto exposure and investor interest across other countries as well. This, coupled with initiatives to regulate the crypto industry, has reassured European customers about asset security. Furthermore, hardware wallet manufacturers view EU nations as profitable markets and maintain local manufacturing and distribution infrastructure to effectively serve the demands.

Asia Pacific region, especially Southeast Asian countries, is emerging as the fastest growing market for hardware wallets globally and is expected to exhibit a CAGR of 26.12% for the forecast period of 2024-2031. With rising internet and smartphone penetration, cryptocurrency trading and ownership has picked up significantly in nations like India, Vietnam and Indonesia in recent times. Due to the active presence of crypto exchanges, increased merchant acceptance, and growing peer-to-peer trading communities, hardware wallet adoption is gradually gaining momentum in APAC as investors focus on asset protection against cyber risks and volatility. Majority of hardware wallet startups are developing low-cost, user-friendly solutions to cater to the price-sensitive APAC markets and strengthen regional market foothold.

The expansion of cyberattacks within the cryptocurrency market in the region serves as a catalyst for the growth of the local hardware wallet market. For example, in September 2021, a Malaysian web hosting service fell victim to a ransomware attack demanding USD 900,000 in cryptocurrencies. Similarly, in May 2021, four subsidiaries of a multinational insurance company across Thailand, Malaysia, Hong Kong, and the Philippines were targeted in a ransomware attack demanding USD 20 million in payment.