Hardware Encryption Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The global hardware encryption market size was approximately USD 321.08 Million in 2024 . The market is estimated to grow at a CAGR of 18.70% in the forecast period of 2025-2034, reaching a value of around USD 1.78 billion by 2034 .

Key Trends in the Market

Hardware encryption refers to the usage of processors and hardware components to keep sensitive data safe. This is done by the process of encryption, decryption, and key generation using integrated circuits (IC) that are designed to handle the device algorithms.

• Hardware encryption uses a separate and dedicated processor to ensure the safety of data, due to which it is increasingly adopted by large-sized businesses. The cost-effectiveness, tamper-resistant key storage, high throughput capacities, and faster algorithm processing are also boosting the usage of hardware encryption in different end-use sectors, including IT and telecom and healthcare.
• Some of the major hardware encryption market trends include the surging development of smart cities and the digitalisation of various sectors, driving the requirement for secure transfer and storage of data.
• Increasing regulatory compliances aimed at ensuring data protection in sectors such as finance and healthcare, among others, drive the hardware encryption market demand. Such sectors also face an increased risk of cyberattacks, which is expected to boost the implementation of encryption hardware solutions to ensure the integrity of customer records and adhere to strict compliance requirements.

Market Segmentation

Hardware Encryption Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Breakup by Algorithm Standard

• Advanced Encryption Standard (AES)
• Rivest- Shamir-Adleman (RSA)
• Others

Breakup by Architecture

• Field-Programmable Gate Arrays (FPGA)
• Application-Specific Integrated Circuits (ASIC)

Breakup by Product

• External Hard Disk Drives
• Internal Hard Disk Drives
• Inline Network Encryptors
• USB Flash Drives
• Others

Breakup by Application

• Consumer Electronics
• Aerospace and Defence
• BFSI
• Healthcare
• IT and Telecom
• Transportation
• Others

Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Market Share by Product

According to the hardware encryption market analysis, external hard disk drives hold a significant market share due to their portability and high storage capacity at affordable rates. The integration of hardware encryption into HDD also reduces the necessity for separate encryption solutions, hence customers are investing in integrated HDD encryption to reduce their expenditures.

Meanwhile, internal hard disk drives rely on magnetic disk-based storage to securely store and protect data. They are more durable and faster than external HDDs, which is likely to drive their preference in the coming years.

Market Share by Region

The Asia Pacific holds a substantial portion of the global hardware encryption market share due to the increasing population and rise in electronic manufacturing activities in the region. The growth of sectors such as healthcare, BSFI, automotive, IT and telecom, aerospace and defence, and government, among others, is also contributing to the market demand.

Furthermore, technological advancements and innovations, along with the growing sales of consumer electronics, are expected to positively impact the hardware encryption market growth in the coming years.

Competitive Landscape

The comprehensive report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global hardware encryption market covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

IBM Corporation

IBM Corporation, founded in 1911, is a multinational technology company that provides hardware, software, and services. The company, with its headquarters in New York, the United States, provides advanced technologies and services to banking, government, retail, and IT and telecommunications, among other sectors.

Micron Technology, Inc.

Micron Technology, Inc., an American company offering computer memory and data storage solutions. It was founded in 1978 and has its headquarters in Idaho. It provides memory solutions and storage systems for applications like automotive and mobile.

Toshiba Electronic Devices & Storage Corporation

Toshiba Electronic Devices & Storage Corporation is a manufacturer of electrical and electronic products. Some of its popular products include personal computers, home appliances, power generators, notebooks, and LCDs.

Other hardware encryption market players include Samsung Electronics Co., Ltd., Kingston Technology Company, Inc., Western Digital Corporation, Analog Devices, Inc., Broadcom, Inc., Thales Group, NetApp, Inc., and Seagate Technology LLC, among others.