Several studies show that the growth rate of the hardware cryptocurrency wallet industry will surpass that of crypto exchanges.
The global hardware wallet market was valued at $252 million in 2021. According to a study by Research And Markets, this value will reach $1.1 billion by 2027. Thus, the industry’s compound annual growth rate (CAGR) will be 27.2%.
Moreover, the growth of the hardware wallet industry can exceed the dynamics of crypto exchanges. For example, the research of analysts from Vantage Market Research showed that the profit of the global cryptocurrency exchanges market will reach $675 million by 2028, while the industry’s average annual growth rate will be only half the CAGR of the hardware wallets industry, reaching 12.7%.
The upward trend in demand for cold wallets was seen earlier this month, when hardware wallet providers reported an increase in revenues. Amid the cryptocurrency market decline and the withdrawal of digital assets by users from centralized exchanges (CEX), Ledger, Trezor and Arculus recorded significant revenue growth.
Analysts also believe that the increasing level of cryptocurrency fraud has contributed to the growing popularity of hardware-based storage for cryptocurrencies.
