Crypto Wallet Market Size, Share & Trends Analysis Report By Wallet Type (Hot Wallets, Cold Wallets), By Operating System (Android, iOS), By Application, By End-user, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global crypto wallet market size was estimated at USD 8.42 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 24.8% from 2023 to 2030. One of the fundamental growth drivers for the market is the widespread adoption of cryptocurrencies as a legitimate asset class. As cryptocurrencies gain recognition from both individual investors and institutional players, the need for secure and user-friendly storage options has become increasingly evident. This recognition has spurred the development and utilization of crypto wallets worldwide. Another significant driver is the growing awareness of cybersecurity's critical role in the crypto space. With the rising value of digital assets, individuals are becoming more concerned about the safety of their investments.

Crypto wallets provide a secure and private method for safeguarding cryptocurrencies, offering a compelling alternative to centralized exchanges that are vulnerable to hacking and cyberattacks. As cybersecurity threats evolve, the demand for robust crypto wallet solutions is expected to remain strong.

The rapid expansion of the Decentralized Finance (DeFi) ecosystem represents another driving force behind the crypto wallet market's growth. DeFi platforms rely on smart contracts, and users need crypto wallets to interact with these decentralized applications effectively. The popularity of DeFi for lending, borrowing, and trading has significantly boosted the demand for crypto wallets that seamlessly integrate with these platforms. Furthermore, the proliferation of Non-fungible Tokens (NFTs) has substantially impacted the market.

The global remittance market is also contributing to the growth of crypto wallets. Cryptocurrencies are increasingly being used for cross-border money transfers due to their cost-effectiveness and efficiency compared to traditional financial institutions. Crypto wallets are pivotal in facilitating these transactions, enabling users to send and receive digital currencies across borders with reduced fees and faster processing times.

In addition, regulatory developments are shaping the market for crypto wallets. Governments and regulatory bodies are beginning to establish guidelines and requirements for crypto wallet providers to enhance security measures and mitigate risks related to illicit activities like money laundering and fraud. Compliance with these regulations has become crucial for wallet providers to gain trust and attract users.

One notable restraint facing the market is the complex and technical nature of cryptocurrencies and blockchain technology. Understanding the intricacies of managing private keys, public addresses, and wallet security can be intimidating for many potential users. This complexity can discourage newcomers from entering the cryptocurrency space and using crypto wallets. To overcome this restraint, wallet providers and the industry as a whole must prioritize user education and user-friendly design. Wallets should be designed with intuitive interfaces, clear instructions, and robust customer support to guide users through the process of setting up and using their wallets securely.

COVID-19 Impact Analysis

The outbreak of the COVID-19 pandemic affected all financial markets, including the stock market, derivatives market, bonds market, and commodity market, adversely. However, the pandemic positively impacted the adoption of digital currency. In 2020, Bitcoin, the most famous form of cryptocurrency, rose by 500% in value in six months. The cryptocurrency market is continuing to witness its longest bull run in the market. The growing adoption of cryptocurrency during the pandemic can be attributed to increasing internet penetration, digitization, rapid technological advances, and diminishing trust in traditional financial systems. The growing preference for cryptocurrency during the pandemic bodes well for the growth of the market.

Wallet Type Insights

The hot wallets segment dominated the market in 2022 and accounted for a revenue share of more than 55.0%. Hot wallets are connected to the internet, and they are more user-friendly. Hot wallets consist of various crypto wallets, including web-based, mobile, and desktop wallets. These wallets are easy to access and downloadable on smartphones, desktops, or other devices. They are used to send and receive cryptocurrency and enable the users to view how many tokens are available. The increasing smartphone and internet penetration, coupled with the rising awareness about cryptocurrency, is driving the adoption of hot wallets. The accessibility and efficiency offered by hot wallets are driving their adoption among cryptocurrency users.

The cold wallets segment is expected to register significant growth over the forecast period. The cold wallet segment is emerging primarily due to its enhanced security features. Cold wallets, also known as hardware wallets or offline wallets, are not connected to the internet, making them immune to online hacking attempts. This heightened security is increasingly attractive to cryptocurrency investors, especially institutional and high-net-worth individuals who seek to safeguard large sums of digital assets.

Operating System Insights

The Android segment dominated the market in 2022 and accounted for a revenue share of over 45.0%. The Android segment has emerged as a dominant force due to the widespread global adoption of Android smartphones, making it the most popular mobile operating system. With a vast user base, Android provides an expansive user pool for crypto wallet developers to target. In addition, Android's open-source nature has facilitated the creation and customization of crypto wallet applications, allowing for a wide variety of wallet options with different features and security levels.

The iOS segment is expected to register significant growth over the forecast period. iOS has been seen as a more secure option over Android systems. Data has become the most valuable commodity in recent times. Consequently, data privacy concerns have been raised over time. Data security concerns have fueled the adoption of solutions that will keep consumers’ data safe and limit the personal information transmitted to operating system owners. iOS provides better data security for the private keys stored on the crypto wallet. Moreover, iOS crypto wallets offer a robust and reliable way of storing cryptocurrencies. The security, accessibility, and ease of use provided by iOS operating systems are expected to drive the segment’s growth over the forecast period.

Application Insights

The trading segment dominated the market in 2022 and generated a revenue share of more than 40.0%. Crypto wallets are primarily used for cryptocurrency trading. Cryptocurrencies can be bought, sold via crypto exchanges, and stored in crypto wallets. The decentralized cryptocurrency is not backed by any central authority, or government, making them more vulnerable to cyberattacks and data theft. Under this scenario, crypto wallets provide a secure method of storing personal cryptocurrency keys, which are essential in crypto trading. The significant increase in crypto trading is driving the demand for crypto wallets, thereby propelling the segment's growth.

The remittance segment is expected to register the highest CAGR over the forecast period. Consumers worldwide are adopting cryptocurrency as a medium to send money overseas. Users prefer cryptocurrency for remittance as they may be able to avoid some high costs charged by traditional banks and money transfer services. Several blockchain startups offer services to facilitate cryptocurrency remittance without requiring users to understand blockchain or cryptocurrency technology. For instance, in September 2022, Felix Pago integrated Circle's payment technology to enable real-time remittances from the U.S. to Latin America. Such initiatives are expected to fuel the segment's growth over the forecast period.

End-user Insights

The individual segment accounted for the largest revenue share of more than 61.0% in 2022. End-users are increasingly using cryptocurrencies for individual use as a robust store of value in the long term. Cryptocurrencies are speculative, which makes them highly volatile. However, more significant risks lead to greater returns in the long term, which is why cryptocurrency is so popular among technologically inclined consumers. According to a report by Triple-A, as of 2022, it is estimated that there will be over 320 million cryptocurrency users worldwide. The blockchain landscape is expanding into new horizons and has now expanded to decentralized finance and non-fungible tokens. Individuals' increasing use of cryptocurrencies for trading, investing, peer-to-peer payments, and remittance is driving the demand for crypto wallets, thereby contributing to the segment's growth.

The commercial segment is anticipated to register the fastest CAGR over the forecast period. Various businesses are using cryptocurrency as a store of value to gain a competitive edge in the market by leveraging advanced technologies. Businesses are leveraging cryptocurrency technology to offer their customers contactless and advanced payment options. By doing so, companies are catering to a varied customer base, who is more technologically inclined, and value transparency in their payment transactions. Moreover, businesses also recognize that crypto can be an effective alternative for balancing assets with cash. A crypto wallet is an essential component of implementing all these changes. The increasing use of crypto wallets in end-use industries, such as BFSI, gaming, government, retail & e-commerce, media & entertainment, and others, is expected to drive the segment's growth.

Regional Insights

North America dominated the crypto wallet market in 2022 and accounted for a revenue share of more than 29.0%. North America houses several key players, including Coinbase Global, Inc.; BitGo; and BitPay. Additionally, the region is known for being an early adopter of technology. In June 2022, PayPal Holdings, Inc. announced that all U.S.-based eligible PayPal account holders can now transfer, send, and receive cryptocurrency with PayPal. This initiative allows PayPal customers to interact with the broader crypto ecosystem and offers the flexibility to move their crypto assets. Such initiatives fuel the adoption of crypto wallets in the North American region, thereby propelling the regional market's growth.

The Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period. The Asia Pacific region boasts a substantial and expanding demographic of technologically proficient individuals, with nations such as China, India, and South Korea at the forefront. These individuals progressively gravitate towards cryptocurrencies, perceiving them as both an investment avenue and a practical method for executing financial transactions. This burgeoning enthusiasm for digital assets fuels an amplified need for crypto wallets.

Key Companies & Market Share Insights

The market for crypto wallets can be described as highly fragmented. Key players are implementing various strategic initiatives, such as product launches, mergers & acquisitions, partnerships, collaborations, and geographical expansions, to secure their strong position in the market and gain a competitive edge. Key players are leveraging advances in blockchain technology and are expanding their offerings to crypto assets such as Non-Fungible Tokens (NFTs). The technological innovations driven by prominent market players are expected to fuel the industry’s growth.

Players are focusing on launching new services with innovative features to capture a larger customer base in the market. For instance, in August 2023, Ledger unveiled a strategic partnership with PayPal, signaling a notable stride towards streamlining cryptocurrency transactions. A joint declaration revealed that the fusion of Ledger Live software with PayPal would empower verified U.S. residents to seamlessly acquire cryptocurrencies such as Bitcoin, Ether, Bitcoin Cash, and Litecoin via Ledger Live, obviating the need for supplementary verification procedures. Some prominent players in the global crypto wallet market include:

• Coinbase Global, Inc.

• BitGo

• Binance

• BitPay

• SatoshiLabs s.r.o.(Trezor)

• Ledger SAS

• BlockFi Inc.

• Exodus Movement, Inc.

• ZenGo Ltd

• Crypto.com

• Blockchain.com, Inc.

Crypto Wallet Market Report Scope

Global Crypto Wallet Market Report Segmentation

The report forecasts revenue growth at global, regional, and country levels and analyzes the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global crypto wallet market report based on wallet type, operating system, application, end-user, and region:

• Wallet Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Hot Wallets

    • Web-based Wallets

    • Mobile Wallets

    • Desktop Wallets

  • Cold Wallets

    • Paper Wallets

    • Hardware Wallets

• Operating System Outlook (Revenue, USD Million, 2017 - 2030)

  • Android

  • iOS

  • Others

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Peer-to-Peer Payments

  • Trading

  • Remittance

  • Others

• End-user Outlook (Revenue, USD Million, 2017 - 2030)

  • Individual

  • Commercial

    • BFSI

    • Gaming

    • Government

    • Retail & E-Commerce

    • Media & Entertainment

    • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Latin America

    • Brazil

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa