Hardware Encryption Market
Hardware Encryption Market Forecasts to 2030 - Global Analysis By Type (External Hard Disk Drives (HDD), Internal Hard Disk Drives (HDD), Solid State Drives (SSD), Non-Renewing Subscriptions and Other Products), Algorithm Type, Architecture, Deployment Type, Security Level, End User and By Geography
According to Stratistics MRC, the Global Hardware Encryption Market is accounted for $432.9 million in 2024 and is expected to reach $1392.9 million by 2030 growing at a CAGR of 21.5% during the forecast period. Hardware encryption is a security measure that uses dedicated hardware components to encrypt and decrypt data, providing a faster and more secure alternative to software-based encryption. It operates independently of the system’s processor, which enhances data protection and reduces vulnerability to malware and cyberattacks. Commonly used in devices like hard drives, SSDs, USBs, and network encryptors, hardware encryption safeguards sensitive information by ensuring that unauthorized users cannot access data, even if the device is lost, stolen.
According to a survey by Infosecurity Magazine, 94% of respondents said that their organization has a policy that requires encryption of data held on removable media.
Market Dynamics:
Driver:
Rising data security concerns
Hardware encryption provides an additional layer of security by encrypting data directly on physical devices, making it less vulnerable to hacking attempts. With more companies handling sensitive information, regulatory requirements like GDPR and HIPAA are pushing businesses to adopt stronger data protection measures, including hardware encryption. Unlike software encryption, hardware encryption is immune to malware and offers faster processing, making it ideal for high-security environments. The expansion of mobile and IoT devices also increases potential attack points, leading industries to prioritize secure data storage and transfer.
Restraint:
Limited awareness in developing markets
Limited awareness at many businesses in the regions prioritizes cost over security, leading to low adoption of encryption solutions. Additionally, the lack of knowledge about the risks of data breaches and regulatory compliance requirements further delays the adoption of hardware encryption. Without awareness, companies may rely on less secure or software-based alternatives, which are more vulnerable to cyber threats. This also results in a slow response to rising cybersecurity concerns. Consequently, the market growth is constrained as organizations in these regions miss out on securing sensitive data with advanced hardware encryption solutions.
Opportunity:
Increasing use in automotive and IoT sectors
The proliferation of IoT devices and linked automobiles has led to the generation and transmission of enormous volumes of sensitive data, including location, personal data, and operational data. A strong layer of protection is offered by hardware encryption, which shields this data from online threats and illegal access. Encryption improves passenger safety and trust in automotive applications, particularly in driverless vehicles, by protecting communication between vehicle systems. Hardware encryption for IoT devices supports sectors including manufacturing, smart homes, and healthcare by enabling safe data handling in real-time. The requirement for dependable hardware encryption solutions rises with the development of industries, driving market growth worldwide.
Threat:
Technological advancements in cyberattacks
Technological advancements in cyberattacks hinder the growth of the hardware encryption market by constantly challenging the effectiveness of existing security measures. As hackers develop more sophisticated tools, including AI-driven attacks, encryption methods must continually evolve to counter new threats. Advanced cyberattacks, such as side-channel attacks, can potentially bypass hardware encryption mechanisms, making them less reliable. This forces companies to invest in more advanced and expensive encryption solutions, impacting adoption rates. Furthermore, zero-day vulnerabilities in hardware devices can expose encrypted data to risks, diminishing confidence in hardware encryption's security. As cyber threats grow in complexity, organizations may feel the need for even more advanced, often costly, protective measures beyond hardware encryption alone.
Covid-19 Impact
The COVID-19 epidemic sped up remote work and digital transformation, which raised need for safe data transport and storage and helped the hardware encryption business. However, disruptions in global supply chains led to component shortages and production delays, slightly slowing growth. Additionally, budget constraints amid economic uncertainty affected investments in advanced encryption solutions, particularly for small businesses. Despite these challenges, heightened cybersecurity concerns and regulatory compliance needs continue to drive long-term adoption of hardware encryption across sectors.
The USB drives segment is expected to be the largest during the forecast period
The USB drives segment is estimated to have a largest share, due to its widespread use for portable data storage across various sectors. With rising data breaches and security threats, encrypted USBs offer enhanced protection by ensuring data is secure even if the device is lost or stolen. Many organizations, particularly in healthcare, finance, and government, mandate encrypted USBs to comply with stringent data privacy regulations. Additionally, encrypted USB drives provide convenience, allowing users to carry sensitive data securely between locations. This growth in encrypted USB adoption reflects a broader market shift toward more robust, hardware-based data protection methods.
The automotive segment is expected to have the highest CAGR during the forecast period
The automotive segment is anticipated to witness the highest CAGR growth during the forecast period, due to the increasing adoption of connected and autonomous vehicles, which demand high data security to protect against cyber threats. With vehicle systems exchanging large volumes of sensitive data in real time, encryption ensures the privacy and integrity of information shared between components. Hardware encryption safeguards critical vehicle functions, from navigation to infotainment and safety systems, from unauthorized access. Regulatory requirements for automotive cybersecurity further drive the need for robust encryption solutions, boosting market growth.
Region with largest share:
Asia Pacific is projected to hold the largest market share during the forecast period due to the increased adoption of digital technologies, rising cybersecurity concerns, and stricter data protection regulations. Countries like China, India, Japan, and South Korea are witnessing a surge in demand for secure data storage solutions across various sectors, including IT, healthcare, finance, and government. The rapid expansion of IoT, cloud computing, and mobile devices further fuels the need for robust encryption solutions. Additionally, ongoing technological advancements and increasing awareness about data security are driving market growth in the region.
Region with highest CAGR:
North America is projected to have the highest CAGR over the forecast period, owing to cybersecurity concerns and stringent data protection regulations like GDPR and CCPA. The region’s strong presence of key players, such as IBM, Seagate, and Western Digital, contributes to rapid innovation and adoption of advanced encryption technologies. With the rise in data breaches and the growing reliance on cloud computing, both enterprises and government agencies are adopting hardware encryption solutions for secure data storage and transmission. North America's high technological advancement and infrastructure further fuel the market’s expansion.
Key players in the market
Some of the key players profiled in the Hardware Encryption Market include Western Digital Corporation, Seagate Technology LLC, Samsung Electronics Co., Ltd., Intel Corporation, Micron Technology, Inc., Toshiba Corporation, Kingston Technology Corporation, Gemalto NV (Thales Group), NetApp, Inc., IBM Corporation, Broadcom Inc., Qualcomm Technologies, Inc., Cisco Systems, Inc., Maxim Integrated Products, Inc., WinMagic Inc., Sophos Ltd., Micronas Semiconductor (TDK Group), McAfee LLC and Certes Networks, Inc.
Key Developments:
In October 2024, Samsung extended its collaboration with Orange to promote sustainability and enhance mobile services in Europe. The partnership focuses on reducing mobile waste through refurbished devices, with both companies testing 5G standalone (SA) technologies.
In July 2024, Samsung acquired Oxford Semantic Technologies, a leader in knowledge graph and semantic reasoning software. The acquisition will help integrate advanced AI personalization into Samsung's products, such as mobile devices, TVs, and home appliances, ensuring enhanced user experiences while maintaining privacy and security.
Products Covered:
• External Hard Disk Drives (HDD)
• Internal Hard Disk Drives (HDD)
• Solid State Drives (SSD)
• Inline Network Encryptors
• USB Drives
• Other Products
Algorithm Types Covered:
• Symmetric Key Encryption
• Asymmetric Key Encryption
Architectures Covered:
• Application-Specific Integrated Circuit (ASIC)
• Field-Programmable Gate Array (FPGA)
Deployment Types Covered:
• On-Premises
• Cloud-Based
Security Levels Covered:
• Standard Encryption
• High-Level Security
End Users Covered:
• Consumer Electronics
• Industrial
• Aerospace & Defense
• Automotive
• Transportation
• Healthcare
• IT & Telecom
• Banking, Financial Services, and Insurance (BFSI)
• Other End Users
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Product Analysis
3.7 End User Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Hardware Encryption Market, By Product
5.1 Introduction
5.2 External Hard Disk Drives (HDD)
5.3 Internal Hard Disk Drives (HDD)
5.4 Solid State Drives (SSD)
5.5 Inline Network Encryptors
5.6 USB Drives
5.7 Other Products
6 Global Hardware Encryption Market, By Algorithm Type
6.1 Introduction
6.2 Symmetric Key Encryption
6.3 Asymmetric Key Encryption
7 Global Hardware Encryption Market, By Architecture
7.1 Introduction
7.2 Application-Specific Integrated Circuit (ASIC)
7.3 Field-Programmable Gate Array (FPGA)
8 Global Hardware Encryption Market, By Deployment Type
8.1 Introduction
8.2 On-Premises
8.3 Cloud-Based
9 Global Hardware Encryption Market, By Security Level
9.1 Introduction
9.2 Standard Encryption
9.3 High-Level Security
10 Global Hardware Encryption Market, By End User
10.1 Introduction
10.2 Consumer Electronics
10.3 Industrial
10.4 Aerospace & Defense
10.5 Automotive
10.6 Transportation
10.7 Healthcare
10.8 IT & Telecom
10.9 Banking, Financial Services, and Insurance (BFSI)
10.10 Other End Users
11 Global Hardware Encryption Market, By Geography
11.1 Introduction
11.2 North America
11.2.1 US
11.2.2 Canada
11.2.3 Mexico
11.3 Europe
11.3.1 Germany
11.3.2 UK
11.3.3 Italy
11.3.4 France
11.3.5 Spain
11.3.6 Rest of Europe
11.4 Asia Pacific
11.4.1 Japan
11.4.2 China
11.4.3 India
11.4.4 Australia
11.4.5 New Zealand
11.4.6 South Korea
11.4.7 Rest of Asia Pacific
11.5 South America
11.5.1 Argentina
11.5.2 Brazil
11.5.3 Chile
11.5.4 Rest of South America
11.6 Middle East & Africa
11.6.1 Saudi Arabia
11.6.2 UAE
11.6.3 Qatar
11.6.4 South Africa
11.6.5 Rest of Middle East & Africa
12 Key Developments
12.1 Agreements, Partnerships, Collaborations and Joint Ventures
12.2 Acquisitions & Mergers
12.3 New Product Launch
12.4 Expansions
12.5 Other Key Strategies
13 Company Profiling
13.1 Western Digital Corporation
13.2 Seagate Technology LLC
13.3 Samsung Electronics Co., Ltd.
13.4 Intel Corporation
13.5 Micron Technology, Inc.
13.6 Toshiba Corporation
13.7 Kingston Technology Corporation
13.8 Gemalto NV (Thales Group)
13.9 NetApp, Inc.
13.10 IBM Corporation
13.11 Broadcom Inc.
13.12 Qualcomm Technologies, Inc.
13.13 Cisco Systems, Inc.
13.14 Maxim Integrated Products, Inc.
13.15 WinMagic Inc.
13.16 Sophos Ltd.
13.17 Micronas Semiconductor (TDK Group)
13.18 McAfee LLC
13.19 Certes Networks, Inc.
List of Tables
1 Global Hardware Encryption Market Outlook, By Region (2022-2030) ($MN)
2 Global Hardware Encryption Market Outlook, By Product (2022-2030) ($MN)
3 Global Hardware Encryption Market Outlook, By External Hard Disk Drives (HDD) (2022-2030) ($MN)
4 Global Hardware Encryption Market Outlook, By Internal Hard Disk Drives (HDD) (2022-2030) ($MN)
5 Global Hardware Encryption Market Outlook, By Solid State Drives (SSD) (2022-2030) ($MN)
6 Global Hardware Encryption Market Outlook, By Inline Network Encryptors (2022-2030) ($MN)
7 Global Hardware Encryption Market Outlook, By USB Drives (2022-2030) ($MN)
8 Global Hardware Encryption Market Outlook, By Other Products (2022-2030) ($MN)
9 Global Hardware Encryption Market Outlook, By Algorithm Type (2022-2030) ($MN)
10 Global Hardware Encryption Market Outlook, By Symmetric Key Encryption (2022-2030) ($MN)
11 Global Hardware Encryption Market Outlook, By Asymmetric Key Encryption (2022-2030) ($MN)
12 Global Hardware Encryption Market Outlook, By Architecture (2022-2030) ($MN)
13 Global Hardware Encryption Market Outlook, By Application-Specific Integrated Circuit (ASIC) (2022-2030) ($MN)
14 Global Hardware Encryption Market Outlook, By Field-Programmable Gate Array (FPGA) (2022-2030) ($MN)
15 Global Hardware Encryption Market Outlook, By Deployment Type (2022-2030) ($MN)
16 Global Hardware Encryption Market Outlook, By On-Premises (2022-2030) ($MN)
17 Global Hardware Encryption Market Outlook, By Cloud-Based (2022-2030) ($MN)
18 Global Hardware Encryption Market Outlook, By Security Level (2022-2030) ($MN)
19 Global Hardware Encryption Market Outlook, By Standard Encryption (2022-2030) ($MN)
20 Global Hardware Encryption Market Outlook, By High-Level Security (2022-2030) ($MN)
21 Global Hardware Encryption Market Outlook, By End User (2022-2030) ($MN)
22 Global Hardware Encryption Market Outlook, By Consumer Electronics (2022-2030) ($MN)
23 Global Hardware Encryption Market Outlook, By Industrial (2022-2030) ($MN)
24 Global Hardware Encryption Market Outlook, By Aerospace & Defense (2022-2030) ($MN)
25 Global Hardware Encryption Market Outlook, By Automotive (2022-2030) ($MN)
26 Global Hardware Encryption Market Outlook, By Transportation (2022-2030) ($MN)
27 Global Hardware Encryption Market Outlook, By Healthcare (2022-2030) ($MN)
28 Global Hardware Encryption Market Outlook, By IT & Telecom (2022-2030) ($MN)
29 Global Hardware Encryption Market Outlook, By Banking, Financial Services, and Insurance (BFSI) (2022-2030) ($MN)
30 Global Hardware Encryption Market Outlook, By Other End Users (2022-2030) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
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