The popularity of cryptocurrency can be traced back to the introduction of Bitcoin, which observed an unprecedented growth in 2017. Following the popularity of Bitcoin, several new cryptocurrencies, such as Monero, Ethereum, Dash, Litecoin, and Ripple, were launched, owing to which corporate users in the banking, financial services, and insurance (BFSI) and government sectors have started using cryptocurrencies for transactions. As every transaction is validated through a decentralized system, it requires certain devices and technologies to protect cryptocurrencies. Therefore, the rising adoption of cryptocurrencies across sectors will facilitate the deployment of blockchain devices globally.
Additionally, the increasing use of cryptocurrency as a mode of payment is expected to drive the blockchain devices market at a healthy CAGR of 48.7% during the forecast period (2020–2030). According to P&S Intelligence, the market revenue will surge from $0.3 billion in 2019 to $23.5 billion by 2030. The escalating use of this digital currency as a payment mode in the retail sector will fuel the demand for blockchain hardware wallets and point of sales (POS) terminals.
Blockchain devices such as blockchain smartphones, blockchain gateways, pre-configured devices, crypto hardware wallets, POS terminals, and crypto automated teller machines (ATMs) are used for personal as well as corporate applications. Among these, crypto hardware wallets were adopted in the highest number due to the booming number of cryptocurrency users and an increasing number of transactions. These wallets are either hardware-based or software-based. Between the two variants, hardware-based wallets are more secure, as they are not vulnerable to system errors and hacking and can be taken offline.
The end user segment of the blockchain devices market is classified into BFSI, retail, government, transportation and logistics, travel and hospitality, and others, such as information technology (IT) and telecommunication and automotive. In the forecast years, the retail category will demonstrate the fastest growth, due to the increasing deployment of blockchain technology in the retail sector to increase consumer confidence and transparency, reduce the number of counterfeit products, accept crypto payments, speed deliveries, and provide a guarantee of authentic products.
Globally, the North American region adopted the highest number of blockchain devices in the recent past, due to the increasing deployment of emerging technologies, such as augmented reality and virtual reality (AR/VR), blockchain, and artificial intelligence (AI). Moreover, the presence of stringent government policies for regulating the BFSI industry for higher security and transparency is also facilitating the usage of blockchain devices in the region. Of North American countries, the U.S. is the larger user of blockchain devices, owing to the hefty investments being made in blockchain technology in the country.
Furthermore, North America and Europe are expected to account for the largest share in the blockchain devices market, due to the increasing number of new players, owing to the implementation of favorable government policies on blockchain and emerging technologies. Additionally, the rising awareness about advanced technologies and the surging adoption of cryptocurrencies will also contribute to the market growth in these regions. Among European nations, the U.K., Switzerland, France, the Netherlands, and Germany are the prominent consumers of cryptocurrencies.
Thus, the rising adoption of cryptocurrencies and the surging use of this digital currency as a mode of payment will propel the usage of blockchain devices in the coming years.