Advanced Encryption Standard(Hardware Encryption) Market Forecast by 2018

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MarketsandMarkets Presents
Hardware Encryption Market worth 166.67 Billion
by 2018
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rdware-based-encryption-systems-market-1115.html
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According to the new market research report "
Hardware Encryption Market - By Algorithms (AES,
RSA), Architectures (FPGA, ASIC), Products (Hard
Disk Drives, USB Drives and In-Line Encryptors),
Applications, Verticals and Geography Analysis
Forecast (2013 2018)" , the total market is
expected to reach roughly 166.67 billion by
2018, growing at an explosive CAGR of 62.17 for
the period of 2013 to 2018. Browse 126 market
data tables and 58 figures spread through 337
pages and in-depth TOC on this reporthttp//www.m
arketsandmarkets.com/Market-Reports/hardware-based
-encryption-systems-market-1115.html Early
buyers will receive 10 customization on this
report.
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Encryption of data is a process of converting it
into a form, where it becomes unintelligible to
any person without access to a key/password to
decrypt the data. The two forms of encryption
that exist currently are the hardware-based
encryption and software based encryption. The
major difference between hardware encryption and
software encryption is that in hardware
encryption, the 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 of 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.
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Currently the cost of adding hardware encryption
capability to storage products is still slightly
high ( 20-30, on an average). Also, the flooding
in Thailand and the earthquake in Japan in 2011
pushed the prices of all hard disk drives up in
2012. This was mainly because all the top players
in the digital storage industry have
manufacturing plants in the APAC region,
especially in Thailand. Thus a demand-supply
imbalance caused a drastic rise in the average
selling price of hard disk drives in 2012. Such
external factors have delayed the adoption and
wide spread deployment of hardware encrypted
products. The hardware encryption market is on
the road to recovery and the product prices are
starting to come down again and this is driving
the market forward. The global hardware
encryption market revenue is expected to reach
14.86 billion by end of 2013. It is also
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 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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The Total addressable market (TAM) revenue for
hardware encrypted hard disk drives is estimated
to grow from 48.57 billion in 2013 to 146.37
billion in 2018. Thus, 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. The rapid adoption of hardware
encryption is expected in the near future. The
TAM revenue for hardware encrypted USB drives is
estimated to grow from 6.82 billion in 2013 to
19.14 billion in 2018. 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 TAMs have been calculated
by the addition of the TAMs for each of the
respective application markets. When
geographical markets North America, Europe, Asia
Pacific and the Rest of the World are considered,
APAC has the major share in the market with
expected revenue of roughly 5.15 billion in
2013. The CAGR of the markets primary base -
APAC, for the period 2013 to 2018 is calculated
to be 58.40. Europe and North America are the
fastest growing regions, with expected CAGRs of
64.03 and 63.69 respectively from 2013 to 2018,
due to the major growth spurts expected in the
consumer electronics sector in the developing
countries in this region.
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The major players in this market are Seagate
Technology PLC (U.S.), Toshiba Corporation
(Japan), Western Digital Corporation (U.S.),
Samsung Electronics Co. Ltd. (South Korea),
Micron Technology, Inc. (U.S.), SanDisk
Corporation (U.S.), Kingston Technology
Corporation (U.S.), Imation Corporation (U.S.)
and so on.
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