The blockchain devices market generated revenue of $0.3 billion in 2019, which is expected to reach $23.5 billion by 2030, at a CAGR of 48.7% during the forecast period (2020–2030)! The growth will be propelled by the expanding market of cryptocurrencies and spurring demand for blockchain solutions. The demand for cryptocurrencies has increased significantly in the last few years, as there is no central regulatory authority for it. The digital currency gained popularity with the unprecedented growth of Bitcoin in 2017. Currently, several cryptocurrencies have emerged, such as Dash, Ripple, Ethereum, Litecoin, and Monero.
The blockchain devices market growth is supported by the escalating demand for blockchain solutions, primarily from the banking, financial services, and insurance (BFSI) sector. Banks and financial institutions are adopting these solutions to curb fraud and financial errors, as blockchain offers high safety and security while exchanging money, data, and information. Owing to this feature, businesses across the globe are incorporating blockchain devices to deal with the high volume of data breaches and cyberattacks, which are an especially grave issue for the BFSI sector.
At present, the blockchain devices market is characterized by the primary trend of wireless blockchain devices. Key market players, such as FuzeW and Ledger SAS, have introduced wireless hardware wallets to reduce the hassles of using wired technologies. In the same vein, GENERAL BYTES s.r.o. and Lamassu Industries AG offer wireless ethernet ports and crypto ATMs. With time, the retail sector has started installing wireless variants of blockchain point of sales (POS) terminals to provide mobility to retailers while receiving payments.
The type segment of the blockchain devices market is classified into crypto hardware wallets, blockchain smartphones, crypto automated teller machines (ATMs), and POS terminals. Amongst these, the crypto hardware wallets division dominated the market in 2019 owing to the surge in the number of cryptocurrency transactions and users, which are resulting in the need for securing these virtual currencies. Crypto ATMs are expected to display the fastest growth in the forecast period due to the enactment of favorable government regulations for the installation of this equipment.
During the historical period (2014–2019) North America generated the highest revenue for the global blockchain devices market. This was due to the implementation of stringent government policies for regulating the BFSI sector, to attain optimum transparency and security. The U.S. was the larger contributor to the North American market due to the rising expenditure on the development of the blockchain technology. Moreover, the high awareness about the blockchain technology in the region has supported the market growth.
Thus, North America and Europe will collectively account for the largest share in the market during the forecast period. This can be owed to the entry of new market players, who are primarily focusing on the development of new and improved blockchain technologies, on account of the favorable government policies in the regions. Due to these factors, the adoption rate of blockchain devices in North America and Europe is higher in comparison to other parts of the world. Switzerland, Germany, the U.S., the Netherlands, and France are the frontrunners in these regions.
Thus, the increasing usage of cryptocurrencies and soaring demand for blockchain technologies from different sectors will fuel the market growth in the forecast period.
