Hardware encryption is a hardware-based technique which is used for securing digital data. There are two forms of encryption; hardware-based encryption and software-based encryption. Hardware encryption uses a processor that contains random number of generators to generate encryption key. The key advantage of hardware-based solutions is that they eliminate the typical drawbacks of software-based solutions such as performance degradation for attacks aimed at the encryption key stored in memory. In hardware encryption, the security parameters and safeguard keys enhance the performance of encryption. These security parameters protect the encryption from cold boots and brute force attacks. Hardware encryption is a cost-effective method that holds diverse applications in securing data efficiently.
Increase in regulatory compliances regarding protection of private & sensitive data and reduction in prices of hardware encryption devices majorly drive the growth of the market. Moreover, factors such as increase in concerns related to data security and privacy, growth of the consumer electronics such as smartphones and tablets and an increase in complexity & volume of data breaches and brute force attacks drive the growth of the market. However, high capital investment and limited use of encrypted devices in the U.S. hinder the market growth. On the contrary, widespread adoption of Internet of Things (IoT) technology and cloud services as well as technological advancement on encryption chip are anticipated to offer lucrative opportunities for the market.
The U.S. hardware encryption market is segmented into algorithm & standard, architecture, product, application, and end use. Depending on algorithm and standard, the market is bifurcated into Rivest, Shamir, and Adelman (RSA), Advanced Encryption Standard (AES), and others. On the basis of architecture, it is classified into Application-Specific Integrated Circuit (ASIC) and Field-Programmable Gate Array (FPGA). The product segment includes Hard Disk Drive (HDD), Solid State Drives (SSD), Universal Serial Bus (USB), and incline network encryptor. By application, the market is categorized into consumer electronics, IT & telecom, automotive & transportation, aerospace and defense, healthcare and others. The end use segment is segregated into industrial, commercial, residential, and government.
The report analyzes the profiles of key players operating in the market, which include International Business Machines (IBM) Corporation, Kingston Technology Company, Inc., McAfee, LLC, Micron Technology, Inc., NetApp, Samsung Electronics Co., Ltd., Seagate Technology LLC, Symantec Corporation, Toshiba Corporation, and Western Digital Technologies, Inc.
KEY BENEFITS FOR STAKEHOLDERS
KEY MARKET SEGMENTS
By Algorithm & Standard
By Architecture
By Product
By Application
By End Use
BY REGION
KEY MARKET PLAYERS
Increase in regulatory compliances regarding protection of private & sensitive data and reduction in prices of hardware encryption devices majorly drive the growth of the market. Moreover, factors such as increase in concerns related to data security and privacy, growth of the consumer electronics such as smartphones and tablets and an increase in complexity & volume of data breaches and brute force attacks drive the growth of the market. However, high capital investment and limited use of encrypted devices in the U.S. hinder the market growth. On the contrary, widespread adoption of Internet of Things (IoT) technology and cloud services as well as technological advancement on encryption chip are anticipated to offer lucrative opportunities for the market.
The U.S. hardware encryption market is segmented into algorithm & standard, architecture, product, application, and end use. Depending on algorithm and standard, the market is bifurcated into Rivest, Shamir, and Adelman (RSA), Advanced Encryption Standard (AES), and others. On the basis of architecture, it is classified into Application-Specific Integrated Circuit (ASIC) and Field-Programmable Gate Array (FPGA). The product segment includes Hard Disk Drive (HDD), Solid State Drives (SSD), Universal Serial Bus (USB), and incline network encryptor. By application, the market is categorized into consumer electronics, IT & telecom, automotive & transportation, aerospace and defense, healthcare and others. The end use segment is segregated into industrial, commercial, residential, and government.
The report analyzes the profiles of key players operating in the market, which include International Business Machines (IBM) Corporation, Kingston Technology Company, Inc., McAfee, LLC, Micron Technology, Inc., NetApp, Samsung Electronics Co., Ltd., Seagate Technology LLC, Symantec Corporation, Toshiba Corporation, and Western Digital Technologies, Inc.
KEY BENEFITS FOR STAKEHOLDERS
- The study provides an in-depth analysis of the U.S. hardware encryption market trends to elucidate the imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analyses on the U.S. hardware encryption market size is provided.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the U.S. hardware encryption industry.
- The quantitative analysis of the market from 2014 to 2026 is provided to determine the U.S. hardware encryption market potential.
KEY MARKET SEGMENTS
By Algorithm & Standard
- Rivest, Shamir, and Adelman (RSA)
- Advanced Encryption Standard (AES)
- Others
By Architecture
- Application-Specific Integrated Circuit (ASIC)
- Field-Programmable Gate Array (FPGA)
By Product
- Hard Disk Drive (HDD)
- External HDD
- Internal HDD
- Solid State Drives (SSD)
- Universal Serial Bus (USB)
- Up to 4GB
- 5GB to 16GB
- 17GB to 64GB
- 65GB and above
- Inline Network Encryptor
By Application
- Consumer electronics
- IT & Telecom
- Automotive & Transportation
- Aerospace and Defense
- Healthcare
- Others
By End Use
- Industrial
- Commercial
- Residential
- Government
BY REGION
- North America
- U.S.
- Canada
- Europe
- Germany
- France
- UK
- Rest of Europe
- Asia-Pacific
- Japan
- China
- India
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
KEY MARKET PLAYERS
- International Business Machines (IBM) Corporation
- Kingston Technology Company, Inc.
- McAfee, LLC
- Micron Technology, Inc.
- NetApp, Inc.
- Samsung Electronics Co., Ltd.
- Seagate Technology LLC
- Symantec Corporation
- Toshiba Corporation
- Western Digital Technologies, Inc.
Table of Contents
Chapter 1: Introduction
Chapter 2: Executive Summary
Chapter 3: Market Overview
Chapter 4: U.S. Hardware Encryption Market, By Algorithm And Standard
Chapter 5: U.S. Hardware Encryption Market, By Architecture
Chapter 6: U.S. Hardware Encryption Market, By Product
Chapter 7: U.S. Hardware Encryption Market, By Application
Chapter 8: U.S. Hardware Encryption Market, By End Use
Chapter 9: Competitive Landscape
Chapter 10: Company Profiles
Executive Summary
According to the report, titled, 'U.S. Hardware Encryption Market, By Algorithm & Standard, Architecture, Product, Application, and End Use: Opportunity Analysis and Industry Forecast, 2019-2026,' the U.S. hardware encryption market size was valued at $28.08 billion in 2018, and is projected to reach $259.12 billion by 2026, growing at a CAGR of 32.4% from 2019 to 2026.Hardware encryption is considered as the most effective form of data protection against unauthorized access. To address the grave issue of the increasing number of complex cyber-attacks, governments across the globe are coming out with stringent regulations pertaining to data protection; a factor that further supplements the demand of hardware encryption as a key data security technology. This in turn attributed to high hardware encryption market growth from the recent past.
In the current scenario, factors such as reduced cost differences between hardware encrypted and non-hardware encrypted products, growing number & complexity of data breaches, regulatory and compliance requirements are driving the growth of the U.S. hardware encryption market. Some of the restraints associated with the hardware encryption market are lack of awareness among the users and limited use of encrypted drives in the U.S. Several encrypted hardware vendors and manufacturers are aiming at developing encrypted keys at reduced prices; customized according to the specifications of the end consumers. Government mandates and regulations, supporting the use of hardware-encrypted products by companies and enterprises, have now been adopted in many countries across the world
Among the various verticals, the consumer electronics sector was the largest contributor, accounting for around 33.2% of the total hardware encryption market share in 2018. The sector would continue to be the highest revenue generator throughout the analysis period. The stringent government regulations, and security standards along with the increasing use of BYOD devices are the key factors supplementing the adoption of hardware encryption in the the consumer electronics sector. The industrial sector would also grow at a notable rate over the forecast period. With an aim to reduce cyber-attacks and improve data protection, governments across different regions are promoting the use of hardware encrypted devices.
Key Findings of the Study
By algorithm & standard, the Rivest, Shamir, and Adelman (RSA) segment dominated the U.S. hardware encryption market. However, the Advanced Encryption Standard (AES) segment is expected to exhibit significant growth during the forecast period in the hardware encryption industry.
On the basis of architecture, the application-specific integrated circuit (ASIC) segment is anticipated the highest revenue share in hardware encryption market trends in 2018.
By product, the Hard Disk Drive (HDD) segment accounted for the highest revenue in 2018 due to technological proliferation and an increase in demand for hardware encryption in consumer electronics such as smartphone, tablets, and laptop.
By application, the consumer electronics segment accounted for the highest revenue in 2018 due to the high adoption of hardware devices for data storage.
Depending on end use, the commercial segment generated the highest revenue in 2018. However, the industrial sector is expected to witness considerable growth in the near future.
Some of the key U.S. hardware encryption market players profiled in the report include International Business Machines (IBM) Corporation, Kingston Technology Company, Inc., McAfee, LLC, Micron Technology, Inc., NetApp, Inc., Samsung Electronics Co., Ltd., Seagate Technology LLC, Symantec Corporation, Toshiba Corporation, and Western Digital Technologies, Inc. Players operating in the U.S. hardware encryption market have witnessed high revenue growth opportunities for hardware encryption especially due to the rise in the number of cyber-attacks. This study includes the hardware encryption market analysis, trends, and future estimations to determine the imminent investment pockets.
Companies Mentioned
- International Business Machines (IBM) Corporation
- Kingston Technology Company Inc.
- McAfee LLC
- Micron Technology Inc.
- NetApp Inc.
- Samsung Electronics Co. Ltd.
- Seagate Technology LLC
- Symantec Corporation
- Toshiba Corporation
- Western Digital Technologies Inc.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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