Global Hardware Encryption Market Report and Forecast 2024-2032

Global Hardware Encryption Market Outlook

The global hardware encryption market size was approximately USD 321.08 million in 2023. The market is estimated to grow at a CAGR of 18.7% in the forecast period of 2024-2032, reaching a value of around USD 1,502.02 million by 2032.

Key Trends in the Market

Hardware encryption refers to the usage of processors and hardware components to keep sensitive data safe. This is done by the process of encryption, decryption, and key generation using integrated circuits (IC) that are designed to handle the device algorithms.

• Hardware encryption uses a separate and dedicated processor to ensure the safety of data, due to which it is increasingly adopted by large-sized businesses. The cost-effectiveness, tamper-resistant key storage, high throughput capacities, and faster algorithm processing are also boosting the usage of hardware encryption in different end-use sectors, including IT and telecom and healthcare.

• Some of the major hardware encryption market trends include the surging development of smart cities and the digitalisation of various sectors, driving the requirement for secure transfer and storage of data.

• Increasing regulatory compliances aimed at ensuring data protection in sectors such as finance and healthcare, among others, drive the hardware encryption market demand. Such sectors also face an increased risk of cyberattacks, which is expected to boost the implementation of encryption hardware solutions to ensure the integrity of customer records and adhere to strict compliance requirements.

Market Analysis

Based on algorithm standard, the market is divided into Rivest- Shamir-Adleman (RSA), and advanced encryption standard (AES), among others. On the basis of architecture, the market is classified into application-specific integrated circuits (ASIC) and field-programmable gate arrays (FPGA). By product, the hardware encryption market segmentation includes external hard disk drives, internal hard disk drives, inline network encryptors, and USB flash drives, among others.

Based on application, the market is divided into consumer electronics, IT and telecom, transportation, aerospace and defence, healthcare, and BFSI, among others. The major regional markets for hardware encryption are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global hardware encryption market covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

• Micron Technology, Inc. 

• Samsung Electronics Co., Ltd. 

• Toshiba Electronic Devices & Storage Corporation 

• IBM Corporation

• Kingston Technology Company, Inc.

• Western Digital Corporation

• Analog Devices, Inc.

• NetApp, Inc. 

• Thales Group

• Broadcom, Inc. 

• Seagate Technology LLC 

• Others

Market Share by Product

According to the hardware encryption market analysis, external hard disk drives hold a significant market share due to their portability and high storage capacity at affordable rates. The integration of hardware encryption into HDD also reduces the necessity for separate encryption solutions, hence customers are investing in integrated HDD encryption to reduce their expenditures.

Meanwhile, internal hard disk drives rely on magnetic disk-based storage to securely store and protect data. They are more durable and faster than external HDDs, which is likely to drive their preference in the coming years.

Market Share by Region

The Asia Pacific holds a substantial portion of the global hardware encryption market share due to the increasing population and rise in electronic manufacturing activities in the region. The growth of sectors such as healthcare, BSFI, automotive, IT and telecom, aerospace and defence, and government, among others, is also contributing to the market demand.

Furthermore, technological advancements and innovations, along with the growing sales of consumer electronics, are expected to positively impact the hardware encryption market growth in the coming years.

Competitive Landscape

IBM Corporation, founded in 1911, is a multinational technology company that provides hardware, software, and services. The company, with its headquarters in New York, the United States, provides advanced technologies and services to banking, government, retail, and IT and telecommunications, among other sectors.

Micron Technology, Inc., an American company offering computer memory and data storage solutions. It was founded in 1978 and has its headquarters in Idaho. It provides memory solutions and storage systems for applications like automotive and mobile.

Toshiba Electronic Devices & Storage Corporation is a manufacturer of electrical and electronic products. Some of its popular products include personal computers, home appliances, power generators, notebooks, and LCDs.

Other hardware encryption market players include Samsung Electronics Co., Ltd., Kingston Technology Company, Inc., Western Digital Corporation, Analog Devices, Inc., Broadcom, Inc., Thales Group, NetApp, Inc., and Seagate Technology LLC, among others.

Key Highlights of the Report

Our Top Selling Reports

HVAC Market

Toys Market

Lime Market

Urea Market

Bus Market

Tuna Market

Construction Market

Helium Market

Asphalt Market

Footwear Market

Hardware Encryption Market Report Snapshots

Hardware Encryption Market Size

Hardware Encryption Market Analysis

Hardware Encryption Companies

Hardware Encryption Market Regional Analysis