CRYPTO WALLET MARKET REPORT OVERVIEW
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The global crypto wallet market size was USD 1470.9 million in 2021 and the market is projected to touch USD 25936.8 million by 2032 at a CAGR of 29.81% during the forecast period.
A cryptocurrency wallet or cryptocurrency wallet is any service, program, or physical device used to store private or public keys that facilitate cryptocurrency transactions. Private keys and/or private keys are a form of asymmetric cryptography that uses keys in pairs, where each pair consists of a private key and a public key. The generation of these keys is based on arithmetic calculations called one-way functions. They are not like regular wallets that hold the currency itself or in this case cryptos. One of the main growth factors of the market is the widespread adoption of cryptocurrencies as a legal asset class.
As cryptocurrencies gain acceptance among both individual investors and institutional players, the need for secure and user-friendly storage options has become increasingly apparent. This recognition has inspired the development and use of crypto wallets worldwide. Another important factor is the growing awareness of cyber security and its important role in the crypto space. As the value of digital assets increases, people are increasingly concerned about the security of their investments. The increase in internet penetration and the use of smartphones worldwide has increased the demand for easy and secure transaction methods. As a result, cryptocurrency wallets are gaining unprecedented influence. Their simplicity and portability make it an ideal partner for new-age digital investors, fueling the market growth.
COVID-19 Impact: Halt in the Financial Industry In Reduced Of Market Development
The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.
The impact of the COVID-19 pandemic is already being felt around the world, with a noticeable impact on the global bitcoin repository. In 2020, many markets were negatively affected by COVID 19. All types of companies have been observed with the sudden pandemic alarms. The many restrictions of the pandemic have negatively affected different types of markets. The demand for cryptocurrency wallets has been affected by the halt in trading and sales activity. Lack of skilled labor and contractual commitments led to project cancellations and project delays. Cryptocurrency corporate companies cut their labor budgets and reduced their workforces. The spread of the virus has forced companies to adopt a work-from-home model and has also delayed many business deals and partnerships.
LATEST TRENDS
"Service Initiatives to Create Growth opportunities will Drive Market Growth"
Since cryptos continue to evolve with the addition of many players every year and the market is very volatile, service providers including both crypto companies and crypto-related services such as wallets, securities and others are constantly updating their facilities or systems, which are expected, help the global market grow. For example, Bitcoin Armory, an open-source python-based wallet management application designed specifically for the Bitcoin network, uses a hierarchical deterministic system that later inspired the BIP32 standard.
CRYPTO WALLET MARKET SEGMENTATION
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- By Type
Based on type the global market can be categorized into Software, Hardware, Paper Wallets. The hardware segment is categorized into Graphical Processing Unit (GPU), Field Programmable Gate Array (FPGA), Application Specific Integrated Circuit (ASIC) and others based on platform types.
- By Application
Based on application the global market can be categorized into Hot Wallets, Cold Wallets. A cold wallet is not connected to the Internet and is sometimes called a hardware wallet. These systems allow crypto to be stored securely in an offline environment, making them immune to online attacks. Even more advanced cold wallets are protected from physical damage.
DRIVING FACTORS
"Increasing Inclination of People towards Digital Currency to Augment Market Growth"
One of the key factors driving the growth of the cryptocurrency wallet market is the inclination of people towards digital currency. Digital currencies offer global opportunities through faster and cheaper bank transfers, the acceleration of electronic commerce, increased remittances in poor countries and increased international remittances. Digital currency payments reduce risk of compromise in the financial system. The need for reliable and long-term storage of value is a common reason for investing in cryptocurrencies. Unlike fiat money, most cryptocurrencies have a limited supply that is limited by mathematical algorithms. This prevents political entities or government agencies from lowering the value of cryptocurrencies due to inflation. Despite doubts about the future of unregulated digital assets, the use of cryptocurrencies has grown in India. This trend towards digital currencies is expected to continue during the forecast period, which is expected to lead to the global crypto wallet market growth.
"Increasing Need For Transparency In The Payment System to Expand The Market"
The cryptocurrency device wallet market is expected to grow promisingly in the coming years due to improved information transparency and independence between banks, financial services, insurance and several other business sectors. The use of cryptographic hardware wallet in various banking sectors offers various advantages such as transparent sending and receiving of payments and secure storage of detailed customer information for further use. In addition, innovative blockchain decentralized technology protocols are expected to replace the need for specific organizational solutions and allow multiple actors to share payments transparently within a business. Such systems make supply chains transparent and help eliminate environmental and other crimes. This will encourage the adoption of crypto wallet market in the future. Therefore, the need for transparency in payment systems is one of the main drivers of the crypto wallet market.
RESTRAINING FACTORS
"Implementation of Government Regulations to Hinder the Growth of the Market"
Government enforcement of cryptocurrency or digital currency regulations and growing crypto privacy and security concerns are expected to hinder the growth of the global hardware wallet market. Lack of awareness about the hardware is a major barrier to its adoption. This is expected to further hinder the growth of the global hardware wallet market. People don't know about buying and selling cryptocurrencies which can hinder the growth of the market.
CRYPTO WALLET MARKET REGIONAL INSIGHTS
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"North America to Lead the Market Due To The Higher Demand For Cryptocurrencies"
North America is projected to dominate the global crypto wallet market share during the forecast period due to the higher demand for cryptocurrencies and consequently the demand for cryptocurrency wallets. This may also be due to the large investments regularly made in crypto in regions such as Canada and the U.S. which encourage service providers to upgrade their systems to meet the growing expectations of users. Developed economies allow the region to invest in better technology, leading to higher crypto adoption rates, fueling regional growth.
KEY INDUSTRY PLAYERS
"Key Industry Players Shaping the Market through Innovation and Market Expansion"
The cryptocurrency wallet market can be described as highly fragmented. Major players are undertaking various strategic initiatives such as product launches, mergers and acquisitions, partnerships, collaborations and geographical expansions to ensure their strong market position and gain competitive advantage. Key players are taking advantage of developments in blockchain technology and expanding their offerings to crypto assets such as NFTs (Non-Fungible Tokens). Technological innovations driven by major market players are expected to boost industry growth.
LIST OF TOP CRYPTO WALLET COMPANIES
- Bitcoin.com (U.S.)
- BitPay (U.S.)
- BitMex (U.S.)
- Ledger (France)
- Bittrex (U.S.)
- Coinbase (U.S.)
- BitGo (U.S.)
- Gemini (U.K.)
- Binance (Cayman Islands)
- Bitfinex (Hong Kong)
INDUSTRIAL DEVELOPMENT
June 2023: Paris-based cryptocurrency manager Ledger has announced the launch of Ledger Enterprise Tradelink. This innovative trading system is designed to be secure and compliant and designed specifically for institutional investors. The main goal of Ledger's new platform is to minimize third-party risks for users. This is achieved by allowing corporate level investors to create a personal network of interconnected account managers and exchanges.
REPORT COVERAGE
The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.
The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.
REPORT COVERAGE | DETAILS |
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Market Size Value In | US$ 1470.9 Million in 2021 |
Market Size Value By | US$ 25936.8 Million by 2032 |
Growth Rate | CAGR of 29.81% from 2021 to 2032 |
Forecast Period | 2024-2032 |
Base Year | 2023 |
Historical Data Available | Yes |
Regional Scope | Global |
Segments Covered | |
By Type
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By Application
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