The latest report by IMARC Group, titled “Hardware Encryption Market: Global Industry Trends, Share, Size, Growth, Opportunity, and Forecast 2022-2027,” finds that the global hardware encryption market size reached US$ 228 Billion in 2021. Hardware encryption is the process of utilizing an algorithm to convert information or data into codes to prevent unauthorized access. It uses a dedicated processor located on the encrypted drive, which generates the encryption key that can be unlocked using the user’s password. It safeguards the data from being accessed by hackers, thereby providing an extra layer of security against online threats such as cold boot, malicious code, and brute force attacks. Owing to these properties, hardware encryption finds extensive applications across banking, financial services, and insurance (BFSI), corporate, information technology (IT) and telecom, and healthcare industries.
We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.
Global Hardware Encryption Market Trends:
The market is primarily driven by the rising incidences of cyber-attacks across the globe. Nowadays, government and private organizations are adopting hardware encryption as these systems are more resilient and deliver faster performance than software encryptions. In addition, the increasing adoption of portable storage devices, which are used to transfer information between computers and create a backup, represents another major growth-inducing factor. Besides this, with the surging sales of consumer electronics, smartphone manufacturers are incorporating fingerprint scanners in their devices to protect users’ privacy and make the process of encryption and decryption faster. For instance, Apple Inc. employs a hybrid encryption model in its products, including the iPad, iPhone, and iPod. This, coupled with the emergence of advanced technologies, such as cloud-based services and the Internet of Things (IoT), is positively influencing the market growth. Furthermore, the introduction of regulatory compliances regarding the protection of private and sensitive data and the declining prices of hardware encryption devices are creating a favorable market outlook across the globe. Looking forward, IMARC Group expects the market value to reach US$ 1,251 Billion by 2027, exhibiting a CAGR of 32.66% during the forecast period (2022-2027).
- Based on the algorithm and standard, the market has been classified into advanced encryption standard (AES), Rivest-Shamir-Adleman (RSA) algorithm, and others.
- On the basis of the architecture, the market has been bifurcated into field-programmable gate arrays (FPGA) and application-specific integrated circuits (ASIC).
- Based on the product, the market has been segregated into external hard disk drives, internal hard disk drives, inline network encryptors, USB flash drives, and others.
- On the basis of the application, the market has been segmented into consumer electronics, IT and telecom, transportation, aerospace and defense, healthcare, BFSI, and others.
- Region-wise, the market has been divided into North America (the United States and Canada), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others), Latin America (Brazil, Mexico, Argentina, Colombia, Chile, Peru, and others), and Middle East and Africa (Turkey, Saudi Arabia, Iran, the United Arab Emirates, and others).
- The competitive landscape of the market has been analyzed in the report, with some of the key players being Gemalto NV, IBM Corporation, Imation Corporation, Maxim Integrated Products, Micron Technology, Netapp, Inc., Samsung Electronics, SanDisk Corporation, Seagate Technology, Thales Group, Toshiba Corporation, Western Digital Corporation, Western Digital Technologies, and Winmagic, Inc.
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