Growing Cryptocurrency Demand Sees Expected CAGR of 29.24% Over Forecast Period

Dublin, November 08, 2021 (GLOBE NEWSWIRE) – The report “Hardware Wallet Market – Growth, Trends and Forecasts (2021 – 2026)” has been added to ResearchAndMarkets.com offer.

The global hardware wallet market was valued at USD 202.40 million in 2020. It is expected to be valued at USD 877.69 million by 2026, registering a CAGR of approximately 29.24% over the forecast period (2021- 2026).

The growing demand for cryptocurrency during the pandemic positively influenced the hardware wallet market. Cryptocurrencies, such as Bitcoin, are gradually shifting from uncertain investment instruments to payments. Payment habits and the financial lifecycle are receiving increasing attention as the COVID-19 pandemic has led to more calls for paperless payments.

Key market trends

NFC type to hold a large share

• Adoption of cryptocurrencies in real-world stores is progressing slowly, although it has the potential to be a convenient, fast, and secure way to pay for goods. Cryptocurrencies, such as Bitcoin, can be used in real environments in a timely manner without requiring a banking license. They can also be used to save merchant money and to protect customer privacy.

• NFC technology allows flexible use of cryptocurrency by providing means of storage. Most importantly, it enables the use of crypto assets in everyday purchases. Using this technology, cryptocurrency can be turned into a simple payment method, and it just works by pairing with a mobile app.

• Using NFC, payment is authorized even if the payee or payer is not connected to the Internet, depending on the type of payment request. This system is beneficial for tourists who are not prepared to pay high roaming charges or who are in places where internet reception is unreliable or not present at all.

• Additionally, BitPay is a company offering Bitcoin merchant solutions and end user wallets. Similar to Apple, BitPay added NFC support to its Point of Sale (PoS) software in 2015, allowing users to pay their bills using the Android wallet, with just one click.

• However, in BitPay, NFC is a simple way to transmit the data traditionally provided by a QR code containing the amount, the payment address and a transaction memo. The Android app does not transmit a full Bitcoin transaction via NFC.

Asia-Pacific expected to experience significant growth

The story continues

• The Asia-Pacific region has the fastest growing hardware wallet market, owing to the growing adoption of cryptocurrency in the region and the growing trend towards a digital and cashless economy in countries like India, Japan and South Korea.

• While the ban on digital currency trading in China may hamper regional growth, the growing acceptance of the digital economy in the rest of the region, particularly in India, Japan, Australia and South Korea. South, is developing a massive market for cryptocurrencies. These countries are also among those where the adoption of hardware wallets occurs the most in the region.

• The growing number of cyber attacks on the cryptocurrency market in the region is also fueling the growth of the regional hardware wallet market. For example, in September 2020, KuCoin, a Singapore-based cryptocurrency exchange, revealed a security incident that resulted in the unauthorized transfer of around $ 150 million in digital assets.

• In October 2020, Huawei announced that its next series of Mate40 smartphones could consist of a mixed hardware wallet for China’s central bank’s digital currency, the digital yuan. According to an official Huawei article on the Chinese microblogging site Weibo, it will be the first smartphone to offer such a wallet on October 30. The message also ensures that users will protect and control their anonymity and make two transactions offline. These allow cell phone users to transfer funds by simply touching their devices together, even if both are offline. Such initiatives should prompt other smartphone makers to adopt hardware wallets in their products.

• South Korea is emerging as one of the important markets for a hardware portfolio, thus driving regional growth. Its two main crypto exchanges, Upbit and Bithumb, are among the world’s top 25 exchanges and combine for a daily trading volume of over $ 200 million. The region is also innovating in NFC hardware wallets, which are also emerging in the global market.

• For example, a new hardware wallet was launched by South Korean financial technology company Keypair. The company’s Keywallet Touch has an unusual design, as it is shaped like a credit card and uses NFC technology. The company claims that the device’s smart card chipset supports cryptocurrencies, such as Bitcoin Cash, Ethereum, Bitcoin core, and Litecoin, while also providing FIDO Universal 2nd Factor (U2F) authentication.

Competitive landscape

The hardware wallet market is highly consolidated due to several global and regional players vying for attention in a somewhat contested market space. As the studied market poses low entry barriers for new players, several new entrants have gained ground in the market by offering feature-rich products at competitive prices. The studied market is characterized by increasing levels of product penetration, moderate / strong product differentiation and high levels of competition. Some of the recent developments in the market are:

• April 2020 – ShapeShift acquired Portis, an Israeli startup that has created the leading Web3 wallet SDK for crypto application developers to integrate wallet functionality into their product.

• March 2020 – CoolBitX Limited received $ 16.75 million in its Series B funding round, led by Japanese financial group SBI Holdings, with participation from the National Taiwan Development Fund of the Korean crypto exchange BitSonic and another Japanese financial group Monex. With this funding, CoolBitX defines its strategy to expand the presence of the Sygna product line beyond the APAC region as the first FATF compliant solution in the market for Virtual Asset Service Providers (VASP) in the world. ?

Companies mentioned

For more information on this report, visit https://www.researchandmarkets.com/r/xsishx

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