Status : Published Published On : Jan, 2024 Report Code : VRSME9041 Industry : Semiconductor & Electronics Available Format : Page : 220

Global Hardware Encryption Market – Analysis and Forecast (2025-2030)

Industry Insight by Architecture Type (Application-Specific Integrated Circuits (ASIC), and Field-Programmable Gate Arrays (FPGA)), by Product Type (External Hard Disk Drives, Internal Hard Disk Drives, Inline Network Encryptors, Solid-State Drives, and USB Flash Drives), by Algorithm & Standard (Rivest-Shamir-Adleman (RSA) Algorithm, Advanced Encryption Standard (AES), Secure Hash Algorithm, Data Encryption Standard, and Elliptic Curve Cryptography), by Application (Automotive & Transportation, BFSI, Consumer Electronics, Healthcare, IT & Telecom, Aerospace and Defense, and Others), by End-User (Commercial, Industrial, Residential, and Government), and Geography (U.S., Canada, Germany, U.K., France, China, Japan, India, and Rest of the World)

Industry Overview

In 2023, the projected value of the Global Hardware Encryption Market is estimated to be USD 0.26 billion, with a projected growth rate of 3.9% leading to a valuation of USD 0.44 billion by 2030. Hardware encryption is a cutting-edge technology designed to safeguard your data, effectively protecting it from unauthorized access and bolstering security measures against potential hackers and online threats.

Hardware Encryption Market

Increasing demand for smartphones, online and digital content, widespread adoption of cloud computing, and use of IoT in various sectors are the factors attracting the market for global hardware encryption products and solutions. The advent of portable devices to transfer files from computers, back up important information, the ubiquity of these devices increases security concerns about the confidential data, technological proliferation, and surging demand for consumer electronics such as smartphones, tablets, etc are anticipated to favorably impact the hardware encryption market globally. These devices cannot be altered or removed by any malware or virus or be uninstalled by the user, owing to which the hardware encryption market is likely to witness high growth over the coming few years.

The COVID-19 pandemic has a moderate impact on the global hardware encryption market as encryption has become an important tool in navigating global health crises. The organization and individuals are focused on data protection, recovery, and storage during this COVID-19 outburst. Moreover, hardware encryption has helped governments in various countries to respond to this deadly virus in a secured manner, thus driving the growth of the global hardware encryption market.

Market Segmentation

Insight by Architecture Type

Based on architecture type, the global hardware encryption market is segmented into application-specific integrated circuits (ASIC), and field-programmable gate arrays (FPGA). The growth of ASIC design is high due to the massive demand for processors in the manufacturing of hardware-encrypted hard disk drives and USB drives, owing to their high speed and small form factor.

Insight by Product Type

Based on product type, the global hardware encryption market is divided into external hard disk drives, internal hard disk drives, inline network encryptors, solid-state drives, USB flash drives. The external hard disk drive will dominate the market during the forecast period because it has the features of an internal disk drive along with additional features such as portable, reliable, and easy to install. Moreover, the rising demand for portable self-encrypting drives (SED), will drive the external hard disk drive segment. The solid-state drive (SSD) segment is anticipated to have a high CAGR during the forecast period, owing to a rapid rise in cases of data breaches, continuous expansion of digital content, usability, and reliability of the product have attracted consumers of different industries to use SSDs.

Insight by Algorithm & Standard

Based on algorithm & standard, the global hardware encryption market is categorized into Rivest – Shamir –Adleman (RSA) algorithm, advanced encryption standard (AES), secure hash algorithm, digital signature algorithm, data encryption standard, and elliptic curve cryptography. Among these categories, the advanced encryption standards (AES) will have the fastest growth due to its wider acceptance, highly secure, and fast algorithm of encryption.

Insight by Application

Based on application, the global hardware encryption market is segmented into automotive & transportation, BFSI, consumer electronics, healthcare, IT & telecom, aerospace and defense, and others. Among these segments, consumer electronics have the largest market share in 2020, owing to the emergence of bring-your-own-devices (BYOD)in various organizations, thus generating the need for hardware encryption security.

Insight by End-User

Based on end-user, the global hardware encryption market is divided into commercial, industrial, residential, and government. Among these categories, the government segment is expected to have a high CAGR, owing to a rise in digitalization and an increase in the need for data security. Furthermore, the commercial segment holds the largest share in 2020 and contributes to more than one-third of the hardware encryption market due to the increase in the use of mobile devices by various government agencies and the storage of confidential as well as healthcare data.

Global Hardware Encryption Market Report Coverage

Report Metric


Historical Period

2018 - 2023

Base Year Considered


Forecast Period

2025 - 2030

Market Size in 2023

U.S.D.  0.26 Billion

Revenue Forecast in 2030

U.S.D.  0.44 Billion

Growth Rate


Segments Covered in the Report

By Architecture Type, By Product Type, By Algorithm & Standard, By Application and By End-User

Report Scope

Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

Regions Covered in the Report

North America, Europe, Asia-Pacific, Middle East, and Rest of the World

Industry Dynamics

Industry Trends

The hardware encryption providers are aiming to provide efficient hardware encryption solutions to attract more customers and maximize revenues. The data is protected against threats such as cold boot, malicious code, and brute force attacks, so it is widely used in various industry verticals such as banking, corporate, IT & Telecom, healthcare, etc.

Growth Drivers

The growth of the hardware encryption market is driven by several factors, including the emergence of compact and cost-effective hardware encryption techniques, growing concerns for data security and confidentiality, compliance with data privacy regulations and standards, increasing risks of data breaches, the expansion of digital content, and the widespread adoption of consumer electronics. Hardware encryption solutions offer advantages over software-based encryption by addressing issues like performance degradation, further fueling their growth.


High capital investment, limited use of encryption devices in some countries, deficiency in buyer responsiveness, and awareness about hardware encryption technology are the challenges that may hamper the growth of the hardware encryption market globally.


The extensive acceptance of cloud services, substantial growth of IoT technology in various industries, and technological development in encryption chips will offer promising growth opportunities for market expansion of the global hardware encryption market during the forecast period.

Geographic Overview

Asia-Pacific dominates the market in 2020 and is anticipated to remain dominant during the forecast period, owing to the high-density population, rise in household income, and rapid growth in the middle-class population in this region. There are many electronic and semiconductor manufacturing companies in this region which creates the demand for these products for internal applications and will install hardware encryption in their product.

North America and Europe are expected to have healthy growth, owing to the advent of cloud-based services, growth in IoT technology, and is home to many established hardware encryptions manufacturing companies, thus driving the growth in this region.

Competitive Insight

The industry players are focusing on providing new products to consumers so as to expand their market penetration and holds a dominant position in the hardware encryption market. There is a constant increase in market competition due to technological innovation and M&A in the hardware encryption industry. Thus, companies are sustaining their position in a competitive market and are providing a competitive edge.

Samsung introduced a Common Criteria Evaluation Assurance Level (CC EAL) 5+ certified Secure Element (SE) turnkey solution for mobile devices. The new solution offers a strong security solution, consisting of a security chip (S3K250AF) and optimized software that fully guards private data on an isolated data storage device.

Some of the prominent players operating in the hardware encryption market across the globe are Western Digital Corporation, Samsung Electronics Co. Ltd., Micron Technology, Inc., NetApp, Kingston Technology Corp., Seagate Technology LLC, WinMagic, Maxim Integrated, IBM, and Toshiba Corporation.

The Hardware Encryption Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.

Segments Covered in the Report

  • By Architecture Type
    • Application-Specific Integrated Circuits (ASIC)
    • Field-Programmable Gate Arrays (FPGA)
  • By Product Type
    • External Hard Disk Drives
    • Internal Hard Disk Drives
    • Inline Network Encryptors
    • Solid-State Drives
    • USB Flash Drives
  • By Algorithm & Standard
    • Rivest-Shamir-Adleman (RSA) Algorithm
    • Advanced Encryption Standard (AES)
    • Secure Hash Algorithm
    • Data Encryption Standard
    • Elliptic Curve Cryptography
  • By Application
    • Automotive & Transportation
    • BFSI
    • Consumer Electronics
    • Healthcare
    • IT & Telecom
    • Aerospace and Defense
    • Others
  • By End-User
    • Commercial
    • Industrial
    • Residential
    • Government

Region Covered in the Report

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • Asia-Pacific (APAC)
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia-Pacific
  • Rest of the World (RoW)
    • Brazil
    • Saudi Arabia
    • South Africa
    • U.A.E.
    • Other Countries

Hardware Encryption Market Size and Analysis

Source-VynZ Research

Frequently Asked Questions

The segments covered in the hardware encryption market are architecture type, product type, algorithm & standard, application, end-user.
Asia-Pacific dominates the market in 2023.
Key market players operating in the hardware encryption market across the globe are Western Digital Corporation, Samsung Electronics Co. Ltd., Micron Technology, Inc., NetApp, Kingston Technology Corp., Seagate Technology LLC, WinMagic, Maxim Integrated, IBM, and Toshiba Corporation
The global hardware encryption market is anticipated to be valued at USD 0.26 billion in 2023 and reach USD 0.44 by 2030, growing at a CAGR of 3.9%.
The advent of IoT and cloud computing, cost-effective hardware encryption techniques, need for data security and confidentiality, regulatory compliance with data privacy, rising risk of data breaches, expansion of digital content, upsurge in the penetration of consumer electronics are the factors that drive the growth of the hardware encryption market.

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle