Hardware Encryption Market (Updated Version Available)

Hardware Encryption Market Size, Share & Trends Analysis, By Product Type (Hard Disk Drive (HDD), Solid-state Drives (SSD), Inline Network Encryptor, and USB Flash Drive), Architecture (Application-specific Integrated Circuit (ASIC) and Field-programmable Gate Array (FPGA)), End Use (Consumer Electronics, IT & Telecom, Aerospace and Defense, Healthcare, Transportation, and Others), Region and Segment, Forecast Period (2023 - 2030)

Report ID : RI_673916 | Date : July 2023 | Format : ms word ms Excel PPT PDF

This Report Includes The Most Up-To-Date Market Figures, Statistics & Data
Key Market Overview:

Hardware Encryption market size is expected to reach USD 539.51 Million by 2030 from the value of USD 297.61 Million in 2022, registering a CAGR of 7.8% during the forecast period (2023-2030)

Encryption is a technique of encoding and decoding data or information by means of secured connection. Moreover, hardware encryption is based on technology that allows the user to encrypt data and use it for latter applications. In addition, hardware encryption allows users to protect data stored in a hard drive or any other physical media by means of encrypted passwords. Since data is present in numerous forms including financial credentials and personal logs, their protection through installation of hardware encryption feasibly boosts its market growth.

In addition, hardware encryption is applied to protect the data from external theft and misuse of information, which tends to be a potential hazard or loss to the owner of data. The key factor driving the demand for hardware encryption is due to the rising number of frauds and cyber threats that occur during exchange of data.

For instance, according to FBI\'s Internet Crime Report 2022, there was a loss of USD 10.2 billion in the year 2022 to the public from potential cyber-crimes happened during the period. Also, a significant number of cases, i.e., 800,944 complaints, were filed during the year.

Therefore, there is a rising need to protect personal information and data theft, hardware encryption has become a mandatory precaution measure, thus driving the market growth.

Hardware Encryption Market Report Coverage:

Report AttributesReport Details
Study Timeline2017-2030
Market Size in 2030 (USD Million)539.51 Million
CAGR (2023-2030)7.8%
Base Year2022
By Product TypeHard Disk Drive (HDD), Solid-state Drives (SSD), Inline Network Encryptor, and USB Flash Drive
By ArchitectureApplication-specific Integrated Circuit (ASIC) and Field-programmable Gate Array (FPGA)
By End UseConsumer Electronics, IT & Telecom, Aerospace and Defense, Healthcare, Transportation, and Others
By Geography
  • Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia]

  • Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]

  • North America [United States, Canada, Mexico]

  • Middle East & Africa [GCC, North Africa, South Africa]

  • South America [Brazil, Argentina, Columbia, Chile, Peru]
Key PlayersWestern Digital Corporation, Samsung Electronics Co. Ltd., Micron Technology, Inc., Kingston Technology Corp., Seagate Technology PLC, NetApp, Inc., KIOXIA Holdings Corp., Kanguru Solutions, Intel Corp., WinMagic Inc.

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Market Dynamics:


Increasing demand for data security and mandatory implementation of compliances within organization is driving the demand for hardware encryption market

Data and information have utmost importance in an organization and requires various measures to protect them. Increasing dependence on information and its exchange is known to be a daily activity within organizations. Also, information has gained importance over the years, due to introduction of advanced technologies including Internet of Things, is driving the need for secured connection and encryption.

Moreover, regulations and standards including Digital Operational Resilience Act (DORA), General Data Protection Regulation (GDPR), Federal Information Processing Standards (FIPS), and others are being adopted by the organizations to protect data is boosting the growth for hardware encryption market. Considering the aforementioned requirements, policies and procedures are being implemented by end users\' business caterers, thus boosting the market growth for hardware encryption.

For instance, Toshibas has introduced MQ01ABU-BW series of self-encrypting HDDs is a FIPS compliant device, with 5,400 rpm. The device is ultra-compact in nature having specifications including 2.5-inch 7mm height form factor. The key feature delivered by the device is wipe security that automatically erases data if an effort to access the devices from an unregistered system is attempted.

Therefore, due to increasing demand for compliance with organizations and need of data protection is driving the market growth for hardware encryption market.


Limited offerings offered by hardware encryption is restraining the market growth

Offering including interoperability, hardware integration, costs, and others plays an important role for the demand of hardware encryption devices. However, cost is one of the major factors that restricts its growth, since hardware encryption devices require specialized cryptographic hardware which tends to be costly. In addition, in term of compatibility, hardware encryption must be compatible with other hardware and software in the network, however, their incompatibility limits its market growth.

Hardware Encryption Market Segmentation:


By Product Type

The Product Type segment is categorized into Hard Disk Drive (HDD), Solid-state Drives (SSD), Inline Network Encryptor, and USB Flash Drive.

Solid-state Drives (SSD) accounted for the largest market share in 2022 owing to growing demand of SSDs over HDDs. SSDs are increasingly popular over HDDs owing to space capability being offered by them. In addition, key features including Self-encrypting drives (SEDs) are employed by hardware encryption models and provides a different holistic approach to the users. Moreover, SSDs are less vulnerable to low-level attacks and have a low level of impact on the performance of hardware upon installation of encryption based software.

For instance, Kingston is offering TCG Opal 2.0 software-based encryption model for SSDs in collaboration with software vendors including McAfee, Symantec, WinMagic, and others.

Inline Network Encryptor is projected to witness the fastest CAGR during the forecast period owing to increasing demand for cloud-based platform services. Inline based hardware encryption lays between memory and hard disk that encrypt and decrypt data once it is transmitted. Moreover, software controls the encryption process and determines how the data should be encrypted or decrypted. Accordingly, owing to its key benefits offered based on software\'s feasibility coupled with growing demand for cloud based services will propel the market growth during the forecast period.

By Architecture

The Architecture segment is categorized into Application-specific Integrated Circuit (ASIC) and Field-programmable Gate Array (FPGA).

Application-specific Integrated Circuit (ASIC) accounted for the largest market share in 2022 and is also considered to be fastest growing during the forecast period. Moreover, ASIC is offering key benefit in term of hardware encryption, owing to its customizable properties to perform encryption and decryption operations. ASICs are available with upgradation in terms of designs and are employed for application based on requirements.

Moreover, ASIC provides feasibility for high end hardware devices and provides better operational facilities. Hardware encryption accompanied by ASIC is mainly utilized in data centers where transfer of data is high and requires high end security. Thus, owing to aforementioned benefits garnered by ASIC in hardware encryption is driving its market growth.

By End Use

The End Use segment is categorized into Consumer Electronics, IT & Telecom, Aerospace and Defense, Healthcare, Transportation, and Others.

Consumer Electronics segment is accounted for the largest market share in 2022 and is also projected to witness the fastest CAGR during the forecast period owing to rising demand for handheld and desktop based electronic devices. Moreover, with the proliferation of IoT (Internet of Things) based technology and its implementation in consumer electronics goods have been fuelling the market growth for this segment.

Furthermore, with the increased importance of data among consumers and organizations, will further boost the demand for hardware encryption market during the forecast period.

For instance, KIOXIA Holdings Corp. has its one of the flagship products, namely EXCERIA G2 NVM SSD is designed to boost the performance of personal computers with the facilities of providing high-end encryption.

By Region:

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.


Asia Pacific accounted for the largest market share in 2022 and is also expected to grow with the fastest growth rate during the forecast period. The key reason for the growth of the region is due to the presence of key players including Toshiba Corp., Samsung Electronics Co. Ltd., and others. Aforementioned players are constantly engaged in the research and development activities associated with storage devices that are operational at the highest rpm (revolution per minute) and facilitate hardware encryption properties. Furthermore, with the rising numbers of electronic devices purchasers in the region owing to improved lifestyle is further contributing to the growth of the region.

Hardware Encryption Market Competitive Landscape:

The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), product innovation, various business strategies, and application launches have accelerated the growth of the micro irrigation systems market. Key players in the market include-

• Western Digital Corporation
• Samsung Electronics Co. Ltd.
• Micron Technology, Inc.
• Kingston Technology Corp.
• Seagate Technology PLC
• NetApp, Inc.
• KIOXIA Holdings Corp.
• Kanguru Solutions
• Intel Corp.
• WinMagic Inc.

Recent Developments

• In October 2021, BT and Toshiba Corporation declared commercial availability of quantum network infrastructure, capable of providing high bandwidth end-to-end encrypted links quantum-secured services.
• In August 2022, Intel Corporation announced a new memory encryption technology, Intel Total Memory Encryption - Multi-Key (Intel TME-MK) based on 3rd generation Intel Xeon Scalable processors.
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