According to a new report, published by KBV research, The Global Hardware Encryption Market size is expected to reach $1.2 trillion by 2031, rising at a market growth of 18.3% CAGR during the forecast period.
The FPGA segment is exhibiting a CAGR of 19.6% during (2024 - 2031). FPGAs offer a high degree of flexibility and programmability, allowing developers to implement custom cryptographic algorithms, protocols, and security features tailored to specific requirements. FPGAs can be reprogrammed and updated to support new encryption standards, protocols, and emerging security technologies. This flexibility enables FPGA-based hardware encryption solutions to adapt to evolving security threats, compliance requirements, and customer needs, driving demand in dynamic and rapidly changing environments.
The Hard Disk Drive (HDD) segment is registering maximum revenue in the Global Hardware Encryption Market by Product in 2023; thereby, achieving a market value of $468.3 billion by 2031. HDDs typically offer a lower cost per gigabyte compared to solid-state drives (SSDs). This cost-effectiveness makes HDDs an attractive option for organizations, especially those with large storage requirements or budget constraints. In scenarios where high storage capacity is prioritized over speed, HDDs are often preferred due to their affordability.
The AES segment would exhibit a CAGR of 18.8% during (2024 - 2031). Government organizations, industry consortia, and international standards bodies have adopted AES as the encryption standard. Standards such as the National Institute of Standards and Technology (NIST) in the United States and the International Organization for Standardization (ISO) recommend it, making it a widely accepted and interoperable encryption solution. As organizations seek standardized and widely supported encryption algorithms for securing their data, the demand for AES-based hardware encryption solutions increases.
The Commercial segment is generating the highest revenue in the Global Hardware Encryption Market by End Use in 2023; thereby, achieving a market value of $467.7 billion by 2031. Commercial organizations, including businesses, enterprises, and small-to-medium-sized enterprises (SMEs), are increasingly concerned about data security and protection. With the proliferation of cyber threats such as data breaches, ransomware attacks, and insider threats, commercial entities recognize the importance of securing sensitive data, intellectual property, and customer information. Hardware encryption solutions provide robust security measures to protect data-at-rest and data-in-transit, ensuring confidentiality, integrity, and availability of critical business assets.
The Automotive & Transportation segment is experiencing a CAGR of 20.3% during (2024 - 2031). Modern vehicles are equipped with increasingly sophisticated onboard computer systems that collect, store, and transmit sensitive data, including vehicle diagnostics, navigation information, and driver behavior data. With the rise of connected and autonomous vehicles, the amount of data generated and processed within automotive systems has grown exponentially. Hardware encryption helps protect this data from unauthorized access, tampering, or interception, ensuring the security and privacy of both vehicle occupants and operational data.
Full Report: https://www.kbvresearch.com/hardware-encryption-market/
The Asia Pacific region dominated the Global Hardware Encryption Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $457.4 billion by 2031. The Europe region is anticipated to grow at a CAGR of 17.8% during (2024 - 2031). Additionally, The North America region would exhibit a CAGR of 17.5% during (2024 - 2031).
By Architecture
By Product
By Algorithm Standard
By End Use
By Application
By Geography
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