Hardware Encryption Market Size
| Study Period | 2020 - 2030 |
| Market Size (2025) | USD 332.57 Million |
| Market Size (2030) | USD 417.35 Million |
| CAGR (2025 - 2030) | 4.67% |
| Fastest Growing Market | North America |
| Largest Market | North America |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Hardware Encryption Market Analysis
The Hardware Encryption Market size is estimated at USD 332.57 million in 2025, and is expected to reach USD 417.35 million by 2030, at a CAGR of 4.67% during the forecast period (2025-2030).
As cyber threats increasingly target sensitive data, the rising adoption of cloud storage services underscores the urgent need for robust data security measures. In response to these security challenges, hardware encryption solutions have emerged as crucial guardians of data in cloud environments. By offering end-to-end encryption and secure key management, these solutions ensure data remains shielded from unauthorized access and breaches.
- Artificial intelligence (AI) is reshaping the encryption landscape, both enhancing encryption methods and posing challenges to them. AI not only refines encryption techniques and streamlines key management but also bolsters threat detection. Moreover, AI is at the forefront of crafting quantum-resistant encryption algorithms, adeptly identifying mathematical patterns and structures to forge encryption methods resilient against quantum threats.
- In February 2024, IBM Corporation and Wipro Limited, a prominent Indian multinational specializing in IT and business process services, announced a strategic partnership. Together, they introduced the Wipro Enterprise Artificial Intelligence (AI)-Ready Platform, an interoperable solution aimed at accelerating AI technology adoption for clients.
- As cyberattacks grow in sophistication and frequency, the reliability of hardware encryption solutions becomes paramount for ensuring data confidentiality and integrity. By offering secure encryption and robust key management, hardware encryption fortifies cloud storage implementations, enhancing global data security strategies for organizations.
- The rapid proliferation of Internet of Things (IoT) devices has spurred technological advancements but also opened doors for cybercriminals. These threats range from mass distributed denial-of-service attacks and network hacking to privacy invasions and data theft. While software-based security can mitigate some of these attacks, they aren't foolproof.
- Implementing and maintaining hardware-based security encryption comes at a premium Cost. This involves not just encrypting external hard drives for heightened protection but also setting up dedicated network platforms to safeguard desktops, laptops, and storage systems which might hamper the market growth.
Hardware Encryption Market Trends
Consumer Electronics to Witness the Major Growth
- Consumer electronics have taken the lead in driving the hardware encryption market. This surge is largely attributed to the growing integration of hardware encryption across a spectrum of electronic devices, from desktop computers and laptops to smartphones and tablets. These devices harness hardware encryption to bolster data security, safeguarding sensitive information from unauthorized access and potential breaches.
- The rising demand for hardware encryption in consumer electronics is intricately linked to the global adoption of Bring Your Device (BYOD) policies by organizations. These policies permit employees to utilize their personal devices for work, underscoring the need for stringent security measures to shield corporate data. Hardware encryption is pivotal in this context, encrypting data both at rest (stored on the device) and in transit (during transmission), thereby ensuring the confidentiality and protection of sensitive information.
- In devices like desktops, laptops, notebooks, and tablets, hardware encryption is seamlessly woven into the device's architecture. This integration employs dedicated cryptographic processors or modules, executing encryption and decryption tasks efficiently, all while preserving the device's performance. By delegating encryption duties to these specialized hardware components, devices can uphold swift processing speeds and responsiveness, all the while ensuring robust data security.
- Furthermore, the omnipresence of smartphones, increasingly utilized for both personal and professional tasks, has catalyzed the surge in hardware encryption adoption. Smartphones leverage hardware-centric security features to safeguard user data, facilitate secure mobile payments, and uphold communication confidentiality. This encompasses encrypting stored data, employing biometric authentication for access, and shielding data during network exchanges.
- For example, in January 2024, Samsung Electronics Co. Ltd. unveiled the SSD 990 EVO, the newest addition to its consumer SSD lineup. Merging robust performance with heightened energy efficiency, the SSD 990 EVO is designed to cater to a spectrum of daily tasks. With its state-of-the-art interface, it boasts compatibility across diverse applications. Be it gaming aficionados, professionals, or creatives, the SSD 990 EVO stands out as a powerful, efficient, and reliable computing solution.
North America to witness the Major Growth
- North America has taken the lead in the hardware encryption market, largely due to the increasing diversity, volume, and complexity of cyber threats confronting organizations across various sectors. As these threats evolve, North American companies are ramping up their efforts to bolster data security, driving a surge in demand for advanced hardware encryption solutions. Additionally, the region's market growth is fueled by the swift adoption and evolution of cutting-edge technologies, including edge computing, artificial intelligence (AI), the Internet of Things (IoT), and cloud analytics.
- These technologies empower organizations to craft and implement sophisticated solutions and services, all of which necessitate the robust data protection that hardware encryption offers. By harnessing edge computing and cloud-native architectures, North American market players are not only boosting their operational efficiencies and scalability but also enhancing overall reliability, further propelling market growth.
- Prominent industry players, such as Seagate Technologies, NetApp, and IBM Corporation, are playing a crucial role in the market's expansion. By embedding advanced encryption algorithms into their hardware products, they're not only bolstering data security but also enhancing efficiency, catering to the rising demand for protection against data breaches and unauthorized access.
- For example, in October-2023, NetApp, Inc. forged a partnership with Equinix, Inc., a global leader in digital infrastructure. This collaboration birthed the NetApp Storage solution, which boasts a holistic stack of computing, networking, and storage infrastructure, all tied together with low-latency connectivity to major public cloud platforms.
- Both the United States and Canada are instrumental in driving the North American hardware encryption market. In the U.S., sectors like military and defense are leading the charge in adopting hardware encryption technologies. This not only safeguards vital military data but also paves the way for expanded market opportunities in the region.
Hardware Encryption Industry Overview
The hardware encryption market boasts a competitive mix of established tech giants and innovative security firms. Looking ahead, we can expect ongoing advancements in encryption technology, an expanded array of hardware-encrypted devices, and an intensified emphasis on user-friendly, comprehensive data security solutions.
Companies in the hardware encryption sector are innovating their product lines to cater to diverse populations across various regions. In addition, these firms are actively seeking partnerships, collaborations, and engaging in mergers and acquisitions to enhance their product offerings.
For example, in March 2024, Toshiba Corporation partnered with Ciena Corporation, a global frontrunner in optical and routing systems, services, and automation software. Through this collaboration, both Toshiba and Ciena underscored the pivotal role of quantum secure communication solutions in protecting critical data transmissions within existing infrastructures.
Hardware Encryption Market Leaders
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Western Digital Technologies
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Samsung Electronics
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Micron Technology, Inc.
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Kingston Technology Corporation
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Seagate Technology
- *Disclaimer: Major Players sorted in no particular order
Hardware Encryption Market News
- July 2024: Kanguru launched a new line of security products designed to protect sensitive data on laptops, tablets, and computers. Their latest offering, the hardware-based internal Self-Encrypting Drives (SEDs), are high-performance solid-state drives tailored for top-notch security. These drives cater to a range of clients, including government agencies, the Department of Defense, healthcare providers, the military, and the energy sector. Highlighting their commitment to security, Kanguru's Defender SEDs come with military-grade AES 256-bit hardware encryption and select models boast FIPS 140-2 certification. Additionally, they incorporate digitally-signed secure firmware and adhere to TCG Opal architecture standards, ensuring robust data protection. Emphasizing the importance of trusted supply chains, Kanguru's Defender SED portfolio proudly meets the Trade Agreements Act (TAA) compliance.
- March 2024: Samsung Electronics Co., Ltd. rolled out the Galaxy A55 5G and Galaxy A35 5G. True to the Samsung Galaxy legacy, these devices shine in photography. With cutting-edge features like optical image stabilization (OIS) and video digital image stabilization (VDIS), users can capture sharp and steady photos and videos, even on the move.
Hardware Encryption Industry Segmentation
Hardware encryption fortifies data security by employing dedicated physical components, moving beyond the limitations of software-based methods. This strategy not only bolsters security but also boosts the performance of data protection mechanisms.
The hardware encryption market is segmented by product (hard disk drive (HDD), solid-state drives (SSD), universal serial bus (USB), inline network encryptor), end users (consumer electronics, automotive, government, healthcare and lifesciences, manufacturing, BFSI, aerospace and defense, IT and telecom, other end users), geography (North America, Europe, Asia Pacific, Latin America, Middle East And Africa). The market size and forecasts are provided in terms of value (USD) for all the above segments.
| By Product | Hard Disk Drive (HDD) |
| Solid State Drives (SSD) | |
| Universal Serial Bus (USB) | |
| Inline Network Encryptor | |
| By End user | Consumer Electronics |
| Automotive | |
| Government | |
| Healthcare and Lifesciences | |
| BFSI | |
| Manufacturing | |
| Aerospace and Defense | |
| IT and Telecom | |
| Other End Users | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Hardware Encryption Market Research FAQs
How big is the Hardware Encryption Market?
The Hardware Encryption Market size is expected to reach USD 332.57 million in 2025 and grow at a CAGR of 4.67% to reach USD 417.35 million by 2030.
What is the current Hardware Encryption Market size?
In 2025, the Hardware Encryption Market size is expected to reach USD 332.57 million.
Who are the key players in Hardware Encryption Market?
Western Digital Technologies, Samsung Electronics, Micron Technology, Inc., Kingston Technology Corporation and Seagate Technology are the major companies operating in the Hardware Encryption Market.
Which is the fastest growing region in Hardware Encryption Market?
North America is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Hardware Encryption Market?
In 2025, the North America accounts for the largest market share in Hardware Encryption Market.
What years does this Hardware Encryption Market cover, and what was the market size in 2024?
In 2024, the Hardware Encryption Market size was estimated at USD 317.04 million. The report covers the Hardware Encryption Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Hardware Encryption Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Hardware Encryption Industry Report
Statistics for the 2025 Hardware Encryption market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Hardware Encryption analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
