Hardware Encryption

Global Hardware Encryption Market to Reach US$369.3 Million by 2030

The global market for Hardware Encryption estimated at US$312.0 Million in the year 2024, is expected to reach US$369.3 Million by 2030, growing at a CAGR of 2.9% over the analysis period 2024-2030. Internal HDD, one of the segments analyzed in the report, is expected to record a 3.0% CAGR and reach US$140.9 Million by the end of the analysis period. Growth in the External HDD segment is estimated at 2.5% CAGR over the analysis period.

The U.S. Market is Estimated at US$82.9 Million While China is Forecast to Grow at 2.8% CAGR

The Hardware Encryption market in the U.S. is estimated at US$82.9 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$59.3 Million by the year 2030 trailing a CAGR of 2.8% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 2.7% and 2.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.9% CAGR.

Global Hardware Encryption Market - Key Trends and Drivers Summarized

Hardware encryption is becoming increasingly vital in the digital age, where the security of data, both stationary and in transit, is a major concern for individuals and organizations alike. This encryption method utilizes a dedicated processor within the storage device itself, which operates independently of the main computer system, providing a secure environment for data encryption and decryption directly on the hardware level. By doing so, hardware encryption ensures that sensitive data is encoded in such a way that it can only be accessed by individuals with the correct decryption key, thereby safeguarding personal and organizational information from unauthorized access, potential breaches, and damage to reputation.

The process of hardware encryption enhances data security during transfers and storage by isolating the encryption mechanisms from the main operating system, which can remain unaffected by software-based attacks. This isolation helps maintain system performance without the slowdowns commonly associated with software encryption solutions. Devices like encrypted solid-state drives (SSDs) and self-encrypting drives (SEDs) that incorporate hardware encryption are less susceptible to software threats and provide a seamless user experience. While hardware encryption provides a high level of security due to its isolated and dedicated processing, it can be more costly than software encryption and less flexible when scaling across multiple platforms, as each new device requires its own hardware-based encryption capability.

The growth of the hardware encryption market is driven by several factors. Rising global data breaches and increased cybersecurity threats have heightened the need for robust data protection measures, making hardware encryption an essential solution for securing data at the hardware level. Stricter regulatory compliance across various industries also fuels demand for hardware encryption to protect sensitive information and meet legal requirements. Furthermore, advancements in digital technology and the expanding Internet of Things (IoT) ecosystem have created new vulnerabilities, thus propelling the use of hardware encryption to secure a growing array of connected devices. Additionally, the shift toward remote work and the increasing use of mobile devices for professional purposes demand more sophisticated data security solutions like hardware encryption to protect data accessed outside of secure corporate environments. Emerging technologies such as cloud computing and artificial intelligence further necessitate strong encryption to secure data within these complex systems, ensuring robust protection against increasingly sophisticated digital threats.

SCOPE OF STUDY:

The report analyzes the Hardware Encryption market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Product (Internal HDD, External HDD, Solid-State Drives, Inline Network Encryptors, USB Flash Drives); Application (Consumer Electronics, IT & Telecom, Transportation, Aerospace & Defense, Healthcare, BFSI, Other Applications)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 32 Featured) -

• Gemalto NV
• Kanguru Solutions
• Kingston Technology Co., Inc.
• Maxim Integrated
• Micron Technology, Inc.
• NetApp, Inc.
• Seagate Technology LLC
• Thales E-Security, Inc.
• Toshiba Memory Europe GmbH
• Western Digital Corporation
• Winmagic Inc.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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