The global cryptocurrency mining hardware market is expected to witness significant growth over the forecast period. Advances in technology to make cryptocurrency mining more profitable by reducing power consumption while increasing the hash rates are expected to drive the growth of the market over the forecast period. The growing use of cryptocurrency for various applications, and the subsequent upsurge in cryptocurrency mining, which is encouraging cryptocurrency miners to establish mining pools to combine their computational resources over a network, are also expected to contribute to the growth of the market. The rising popularity of different cryptocurrencies, which is particularly driving the demand for cryptocurrency-specific hardware, is also expected to play a decisive role in driving the growth of the market. Continued digitalization, the proliferation of smartphones, and the increasing internet penetration rate are some of the other factors that bode well for the growth of the market over the forecast period .
Cryptocurrency technology providers are investing aggressively in research & development activities to develop innovative products and expand their respective product portfolios. New product launches are particularly aimed at enhancing the efficiency of cryptocurrency mining. For instance, in February 2021, NVIDIA Corporation, a technology company based in the U.S., announced the launch of Cryptocurrency Mining Processor (CMP), a series of semiconductors specifically designed for mining Ethereum, as part of the company’s efforts to expand its product portfolio for cryptocurrency mining.
The outbreak of the COVID-19 pandemic took a severe toll on the cryptocurrency mining hardware market, particularly because of the lockdowns and restrictions on the movement of people and goods, which disrupted the supply chain operations. At the same time, consumer demands got limited as individuals remained keen on eliminating non-essential expenses from their budgets. Nevertheless, the global market is poised for a recovery and potential growth as digitalization continues to gain traction and the restrictions on the movement of people and goods are gradually relaxed.
Several market players in the cryptocurrency mining hardware market are focusing on venture capital investments to raise funding for enhancing the product portfolio and cementing the market position. These investments are expected to create new opportunities for the growth of the market over the forecast period. For instance, in September 2021, Genesis Digital Assets, a Bitcoin (BTC) mining company, raised USD 431 million in a new funding round led by Paradigm, a company that invests in cryptocurrency companies, along with other investors, including NYDIG, a Bitcoin-focused financial firm; Ribbit and Electric Capital; FTX; and Kingsway Capital, a private equity fund based in the U.K. The company envisages utilizing the funding in expanding its mining operations in the U.S. and the Nordics.
The key players in the cryptocurrency mining hardware market include BitMain Technologies Holding Company, Bitfury Group Limited., ASICminer Company, INTELION, and INNOSILICON Technology Ltd. These market players are pursuing various growth strategies, such as strategic partnerships, mergers & acquisitions, and new product development, as part of the efforts to further expand their global market presence. For instance, in September 2019, BitMain Technologies Holding Company announced the launch of the World Digital Mining Map (WDMM), a platform that connects mining hardware owners with mining farm owners. WDMM has been designed with an aim to connect mining farms and hardware owners in an efficient manner and eventually make cryptocurrency mining more sustainable.
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