PUBLISHER: Allied Market Research | PRODUCT CODE: 1447186
PUBLISHER: Allied Market Research | PRODUCT CODE: 1447186
Hardware encryption is a security approach that involves the use of specialized hardware components to encrypt and decrypt data, providing an extreme level of protection for sensitive information. On the other hand, software-based encryption, which relies on a device's general-purpose processor, hardware encryption utilizes dedicated cryptographic processors or modules integrated into devices such as USB drives, external hard disks (EHD), or solid-state drives (SSD). This dedicated hardware is designed to efficiently manage encryption and decryption tasks, offloading the processing burden from the main system. As a result, hardware encryption enhances overall security by reducing vulnerability to various cyber threats and attacks. This method is particularly valuable for securing data on portable devices, ensuring that even if the physical device is compromised, the encrypted data remains well-protected.
However, hardware encryption may make more sense for organizations in the financial, healthcare, and government sectors. Regulations such as the Health Insurance Portability and Accountability Act (HIPAA) and Payment Card Industry Data Security Standard (PCI DSS) often have strict requirements regarding encryption of sensitive information. By complying with these regulations by using strong encrypted devices, the business can avoid expensive fines, lawsuits, and reputational damage. Such factors are expected to provide lucrative opportunities for market growth during the forecast period.
Factors such as increase in regulatory compliances regarding protection of privacy & sensitive data and reduction in prices of hardware encryption devices majorly drive the growth of the global hardware encryption market. Moreover, increase in concerns related to data security and privacy, rise in penetration of consumer electronics such as smartphones & tablets, and increase in complexity & risk of data breaches as well as brute-force attacks are also anticipated to drive the growth of the market during the forecast period. Furthermore, widespread adoption of Internet of Things (IoT) technology and cloud services as well as technological advancements in encryption chips are anticipated to offer lucrative opportunities for market expansion during the forecast period. However, high capital investment and limited use of encrypted devices across some of the countries may hinder the growth of the hardware encryption market.
The hardware encryption market is segmented into algorithm standard, architecture, product, application, end use, and region. Depending on algorithm standard, the market is segregated into RSA, AES, and others. By architecture, it is classified into ASIC and FPGA. By product, the market is divided into hard disk drive (HDD), solid state drive (SSD), universal serial bus (USB), and incline network encryptor. By application, the market is categorized into consumer electronics, IT & telecom, automotive & transportation, aerospace & defense, healthcare, government & public utilities, BFSI, and others. By end use, the market is fragmented into industrial, commercial, residential, and government. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The market players operating in the hardware encryption market are Broadcom Inc., International Business Machines Corporation, McAfee, LLC, Micron Technology, Inc., NetApp, Inc., Samsung Electronics Co., Ltd., Toshiba Corporation, Kingston Technology Company, Inc., Seagate Technology, LLC. And Western Digital Technologies, Inc. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help to drive the growth of the hardware encryption market globally.
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