Global Hardware Encryption Market Size, Share, Growth Analysis, By Product (Hard Disk Drivers, Solid-State Drivers), By End Use(Residential, Commercial) - Industry Forecast 2023-2030

Global Hardware Encryption Market size was valued at USD 250.21 billion in 2021 and is poised to grow from USD 292.25 billion in 2022 to USD 866.66 billion by 2030, at a CAGR of 16.80% during the forecast period (2023-2030).

Securing digital data can be achieved through hardware encryption, a method rooted in hardware-based solutions. The primary advantage of such hardware-centric approaches is the avoidance of typical issues associated with software-based solutions, including performance degradation during attacks on the encryption key stored in memory. Hardware encryption exhibits superior performance, especially when security parameters and safeguard keys are implemented. For example, Samsung has introduced a Secure Element (SE) turnkey solution certified to Common Criteria Evaluation Assurance Level (CC EAL) 5+ for mobile devices, providing a robust security system with a security chip (S3K250AF) that safeguards against cold boots and brute-force attacks. Hardware encryption presents a cost-effective strategy for securing data across various applications. The increasing demand for compliance with legal regulations concerning the protection of private and sensitive data, coupled with the proliferation of digital content, is driving the global hardware encryption market. The market is poised for growth due to heightened complexity, the risk of data breaches, and brute-force attacks, with hardware encryption architecture holding a significant advantage over its software counterparts. Decreased prices of hardware encryption devices and a surge in regulatory compliances for safeguarding private and sensitive data are further propelling the expansion of the global hardware encryption market. In predicting market trends at the country level, considerations include the presence and influence of international brands, challenges posed by strong or weak competition from local brands, the impact of domestic tariffs, and trade routes.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Hardware Encryption Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Segments covered in this report

Global Hardware Encryption Market is segmented on the basis of product, connectivity, end use and region. By product, the market is segmented into hard disk drivers, solid-state drivers, USB drivers & external drivers, inline network encryptors. By end use, market is segmented into residential, commercial, industrial. By connectivity, the market is segmented into wired and wireless. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers:

The widespread use of mobile devices and the integration of Bring Your Own Device (BYOD) policies in workplaces present new challenges for ensuring data security. Mobile devices are susceptible to theft, loss, and unauthorized access, emphasizing the significance of encryption as a fundamental security measure. Hardware encryption solutions, including encrypted solid-state drives (SSDs) and self-encrypting drives (SEDs), offer robust data protection for users of mobile devices, enabling organizations to embrace mobile technologies while upholding security standards.

As the demand for high-performance computing and low-latency data processing continues to rise, hardware-based encryption demonstrates superiority over software-based encryption alternatives. Hardware encryption solutions deliver expedited encryption and decryption processes, ensuring minimal impact on overall system performance. Industries with stringent security and performance requirements, such as banking, finance, healthcare, and defence, find hardware encryption crucial in meeting their encryption needs effectively.

Restraints

Hardware encryption solutions might encounter scalability limitations, particularly within extensive enterprise environments. Implementing encryption features across numerous devices, servers, or endpoints could demand substantial investments and resources. Expanding hardware encryption infrastructure across geographically dispersed locations may additionally pose logistical hurdles. As organizations expand or undergo growth phases, evaluating the scalability of hardware encryption solutions becomes a critical factor to consider.

Market Trends:

SEDs encompass storage devices like solid-state drives (SSDs) and hard disk drives (HDDs) equipped with built-in encryption capabilities. These devices encrypt data in real-time, ensuring automatic protection without the necessity for additional software or hardware. The growing embrace of SEDs can be attributed to their straightforward implementation, heightened data security, and seamless compatibility with existing systems. As organizations increasingly seek hardware-based encryption solutions, SEDs are emerging as a popular and reliable choice.