The global crypto wallets market is experiencing significant growth, driven by the increasing demand for better security systems in the cryptocurrency industry. Crypto wallets are software or apps that securely store private keys, allowing users to use digital currencies. According to a research report, the market was valued at USD 8.24 billion in 2022 and is projected to reach USD 46.72 billion by 2030, with a compound annual growth rate (CAGR) of approximately 24.23% during the forecast period.
Crypto wallets can be divided into two types: cold wallets and hot wallets. Cold wallets, also known as hardware wallets, are offline devices that provide enhanced security by keeping cryptocurrencies offline and safe from online attacks. The cold wallet market is expected to grow at a higher CAGR compared to the overall crypto exchange market.
The market for crypto wallets is dominated by the offline channel, which is widely preferred due to its security advantages. Many platforms offer offline wallets to protect cryptocurrencies from cyber-attacks. However, concerns related to wallet access permission and wallet vulnerabilities may pose challenges to market growth.
In terms of end-users, the individual segment dominated the market in 2021 and is expected to continue generating more revenue in the coming years. The most popular crypto wallet, Coinbase Wallet, has over 103 million verified users.
The global market is forecasted to witness significant growth in North America and Asia-Pacific regions. North America leads in revenue generation due to a high awareness rate and the presence of key industry players. Asia-Pacific is also projected to grow at a high CAGR, driven by increasing interest in cryptocurrencies and growing adoption in countries like Japan and India.
Leading companies in the crypto wallets market include ELLIPAL Limited, CoolBitX Technology Ltd., BitLox, ShapeShift, Sugi (zSofitto NV), OPOLO SARL, Satoshi Labs SRO, Ledger SAS, and Shift Crypto AG. These companies are focusing on enhancing security systems and improving customer experience to stay competitive in the market.
Overall, the global crypto wallets market offers lucrative opportunities for investors due to the growing demand for enhanced security systems and increasing adoption of cryptocurrencies.