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

Report Overview

The global crypto wallet market size was valued at USD 8.42 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 24.8% from 2023 to 2030. Crypto wallets keep cryptocurrency safe and secure by storing their private keys in the wallet. Crypto wallets also allow sending, receiving, and spending of cryptocurrencies such as Ethereum and Bitcoin. Crypto wallets come in many forms, including hardware wallets or mobile wallets. Crypto holdings are stored on the blockchain and can only be accessed using private keys stored in crypto wallets. These private keys are proof of ownership, and hence protecting them is essential. The robust security provided by the crypto wallets is expected to impel the demand for crypto wallets, thereby driving the future market growth.

As of August 2022, the number of crypto wallet users reached 84.02 million worldwide, from 76.32 million users in August 2021. The increasing growth in crypto wallet usage can be attributed to the growing use of cryptocurrency. The number of crypto buyers has increased now more than ever. With more crypto buyers emerging, companies increasingly offer digital payment options across all channels. Additionally, increasing competition in the banking section, growing distrust in banks & financial systems, and increasing money laundering activities are the reasons for the increased use of cryptocurrency. The growing adoption of cryptocurrency is driving the adoption of the private crypto wallet.

The number of financially aware and technologically inclined adults has increased in the past few years, contributing to the greater adoption of cryptocurrency and its infrastructure, such as crypto wallets. With an increasing demand for cryptocurrencies, the number of merchants offering crypto payment options has also increased significantly.

For instance, in January 2020, Burger King, a fast food chain, announced that it would start accommodating cryptocurrency payments in selected restaurants in Venezuela. This initiative was seen to be taken to help the citizens in Venezuela who is struggling with hyperinflation. Such strategic initiatives encourage the use of cryptocurrency and private crypto wallets, thereby fueling the market's growth.

With the rise in the use of cryptocurrency worldwide, businesses are also adopting cryptocurrency considering its benefits such as enhanced security and elimination of third parties. Companies are venturing into the crypto landscape by using them as a store of value for operational, investment, and transactional purposes. Using cryptocurrency in business can cater to a new clientele that values transparency in their transactions.

According to a study by Bit Pay, 40.0% of the consumers that pay with crypto are new to the merchant, and their purchase amounts are twice as much as credit card purchases. The growing adoption of cryptocurrency benefits businesses, driving them to accept cryptocurrency payments. The emergence of cryptocurrency in business practices is contributing to the growth of the crypto wallet market.

However, buying, selling, and storing cryptocurrency comes with high risks. Trading cryptocurrency is highly speculative, and the value of cryptocurrency itself is highly speculative. Apart from the price volatility, technical complexity, governance, and smart contract risks, keeping the private keys safe and protecting them from scams and hackers is another risk involved in cryptocurrency trading.

However, crypto wallets play an essential role in protecting these private keys. Hardware crypto wallets that allow users to store their private keys on a device that remains offline and is less exposed to potential threats are popular among cryptocurrency holders. Crypto wallets are constantly evolving regarding their security features and technology, creating a growth opportunity in the market.

COVID-19 Impact Analysis

The outbreak of COVID-19 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, within six months.

Cryptocurrency 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. Growing preference for cryptocurrency during the pandemic bodes well for the growth of the crypto wallet 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 adoption of the hot wallets. Accessibility and efficiency offered by the hot wallets are driving their adoption between cryptocurrency users.

The cold wallets segment is expected to register significant growth during the forecast period. Cold wallets consist of paper wallets and hardware wallets which are offline wallets, making them more secure. Since cold wallets are not linked to the internet, they are considered a safer or more secure option for storing cryptocurrency.

With the increasing traction of cryptocurrency, cybercrime threats are also increasing. The impending dangers of stolen privacy keys drive the adoption of more secure hardware crypto wallets, thereby driving the growth of the cryptocurrency hardware wallet market.

Operating System Insights

The android segment dominated the market in 2022 and accounted for a revenue share of more than 45.0%. Crypto wallets are usually designed to work on both android and iOS systems. Android wallets are usually open-source wallets that users can easily access and download. The increasing use of cryptocurrency coupled with growing smartphone penetration is expected to drive the segment’s growth. In 2022, android phones accounted for a share of 71.47% of total smartphones worldwide. The growing adoption of android smartphones is expected to drive the growth of the android operating system segment during the forecast period.

The iOS segment is expected to register significant growth during the forecast period. iOS has been seen as a more secure option than 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 the iOS operating systems are expected to drive the segment’s growth during 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 demand for crypto wallets, thereby propelling the segment's growth.

The remittance segment is expected to register the highest growth during the forecast period. Consumers worldwide are adopting cryptocurrency as a medium to send money overseas. Users prefer crypto currency 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 during the forecast period.

End-Use Insights

The individual segment dominated the market in 2022 and accounted for a revenue share of more than 61.0%. End users are increasingly using cryptocurrencies for individual use as a robust store of value in the long term. Cryptocurrencies are speculative in nature, which makes them highly volatile. However, more significant risks lead to greater returns in the long term, which is why the 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 more than 320 million cryptocurrency users worldwide. The blockchain landscape is expanding into new horizons and has now expanded to decentralize finance and non-fungible tokens. Individuals' increasing use of cryptocurrencies for trading, investing, peer-to-peer payments, and remittance is driving demand for crypto wallets, thereby contributing to the segment's growth.

The commercial segment is anticipated to register the fastest growth throughout 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, which 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.

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 during the forecast period.

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 in the market, including Coin base Global, Inc., Bit Go, and Bit Pay, among others. 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 is expected to play a vital role and be crucial in blockchain innovation. The region’s large population, including financially aware and technologically inclined, is driving the innovation in crypto wallets in the area. Businesses in the region are increasingly accepting crypto payments. For instance, in August 2022, Asia Pay partnered with a cryptocurrency payment gateway service provider, Triple A, to empower merchants to accept crypto payments.

Key Companies & Market Share Insights

The crypto wallet market can be described as a highly fragmented market. Key players are implementing various strategic initiatives, such as product launches, mergers & acquisitions, partnerships, collaborations, and geographical expansions, in order to secure their strong position in the market and gain a competitive edge.

Key market 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 growth of the crypto wallet market.

Players are focusing on launching new products with innovative features to capture a larger customer base in the market. For instance, in May 2022, Robin Hood, a financial service company, announced the launch of a new independent Web 3.0 cryptocurrency wallet that will cover clients' transaction costs on the blockchain network without keeping control of their assets. This launch will make it easy for the users to hold their keys and experience all the open financial system's opportunities. Some of the prominent players in the global Crypto Wallet Market include:

• Coin base Global, Inc.

• Bit Go

• Binance

• Bit Pay          

• Satoshi Labs s.r.o.(Trezor)

• Ledger SAS

• Block Fi Inc.

• Exodus Movement, Inc.

• Zen Go Ltd

• Crypto.com

• Blockchain.com, Inc.

Crypto Wallet Market Report Scope

Global Crypto Wallet Market Segmentation

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of 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

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Latin America

    • Brazil

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa