Boston, MA -- (SBWIRE) -- 08/20/2013 -- The major difference between hardware encryption and software encryption is that in hardware based encryption, encryption and decryption processes are done by a dedicated processor on the hardware encrypted device. In software encryption, the resources of the device on which the software is installed, are used for the encrypting and decrypting the data. This makes hardware encryption much faster. Another advantage to hardware encryption is that the cryptographic key is stored in a separate inaccessible portion of memory storage, thus making it more secure than software encryption.

The global hardware encryption market revenue is expected to reach $14.86 billion by end of 2013 is expected to grow to $166.67 billion in 2018 at a CAGR of 62.17%. Similarly, volumes are estimated to grow from roughly 59.76 million units to 691.79 million units in 2018 at a CAGR of 63.20%. This growth is heralded by the growing consumer electronics applications market for hardware encryption products. The hardware encryption applications in the Military Defense and Aerospace (MDA) applications sector is also expected to grow rapidly in the coming five years.

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This report also looks into the whole value chain of the hardware encryption market. It also focuses on the parent markets and the sub-markets of this industry and thus identifies the total potential market that can be tapped by hardware encryption. The market penetration of hardware encrypted HDDs into this TAM stands at 20.07% in 2013 and is expected to grow to 69.05% by 2018. Similarly, the market penetration of hardware encrypted USB drives into this TAM stands at 33.17% in 2013 and is expected to grow to 63.81% by 2018.

The report, based on an extensive research study of the global market and the related semiconductor and products industries, is aimed at identifying the entire market of hardware based encryption systems in all the applications. The report covers the overall market and sub-segment markets through extensively detailed classifications, in terms of both - revenue and shipments.

Hardware Encryption Industry Revenue Breakdown (With Forecasts)

Hardware Encryption Market

Source: MarketsandMarkets Analysis

The sub-market of the hardware encryption market considered in this section is the semiconductors market for hardware based encryption chipsets. The semiconductor market is currently estimated to be around $1.77 billion and is expected to reach $6.06 billion by 2018. Though the numbers of chipset manufacturers are low currently, more number of chipset players are looking to tap the hardware encryption market potential and thus the procurement channel is expected to become more efficient in the future

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