Hardware wallet: Ledger leader in a market of 180 million
25. November 2020
Ledger is the market leader in wallet hardware.
According to a recent report by ReportLinker, this market is estimated to be $178.20 million in 2019, with the prospect of exceeding $660 million annually by 2025.
In addition to Ledger, founded in 2014, the other main companies in this market are Trezor, founded in 2013, and Ellipal, more recently founded in 2017.
The sustained growth of this market began mainly in December 2017, when a large number of new users acquired cryptocurrencies and raised the issue of their preservation.
The fact is that as the number of people with more cryptocurrency increases over time, demand for wallet hardware is also growing exponentially.
In addition, manufacturers are innovating, bringing to market devices that support multiple currencies and wireless technologies.
Another reason that is driving this demand is the numerous hacks suffered by exchanges, which inevitably push many users to opt for different and more secure custody solutions, especially offline.
Ledger and the wallet hardware market
Cold wallet hardware is extremely secure when not connected to the network, provided that the seed is stored with extreme care.
For example, in July 2020 Ledger herself confirmed that her site’s database had been hacked, with the theft of 1 million e-mail addresses and some documents. Despite this, however, no fund of any user of their devices has been affected by this hack.
The 2020 pandemic has further strengthened these trends, partly due to the increased need for electronic payments.
However, the adoption of cryptocurrency as a means of payment in physical shops is still proceeding slowly.
NFC technology, which is already used by many credit cards, for example, and which makes it possible to make payments using cold wallets that are not connected to the Internet, such as hardware wallets, could help.
For this reason the report assumes that in the coming years this technology could help the spread of cryptocurrency as a means of payment.
The area where the hardware wallet market is growing most is Asia-Pacific, particularly due to the growing trend of digitisation of payments in countries such as India, Japan and South Korea.
However, the overall market is only moderately fragmented, although there are several global and regional players competing for attention in a fairly compressed space.
However, barriers to entry are low, so a number of new entrants have been able to enter this market recently with feature-rich products at competitive prices.