The global crypto wallets market revenue is set to reach USD 1,505.9 million in 2023 and is expected to surpass USD 3,675.4 million by 2033. The market is likely to exhibit a CAGR of 9.3% from 2023 to 2033.
Crypto wallets currently represent nearly 25% of sales in the overall cryptocurrency market. One of the main benefits of crypto wallets is that they can safely store users’ private keys or passwords that make their cryptocurrencies secure and accessible, thereby permitting them to send and receive cryptocurrencies like Ethereum and Bitcoin.
Crypto wallets are of two types such as hot wallets and cold wallets, where hot wallet comprises desktop wallet, web wallet, and mobile wallet. Cold wallet comprises hardware wallets and paper wallets. Crypto wallets also come in mobile apps like Coinbase Wallets, which make utilizing crypto as simple as shopping with a credit card online.
A crypto wallet can only be accessed by utilizing a private key. Users’ keys prove their ownership of digital money and permit them to make transactions. If they lose their private keys, they can lose access to their money. This is why it’s crucial to keep hardware wallets secure or utilize a trusted wallet provider.
In 2022, North America dominated the global market, accounting for about 29.6% of the total share by region. On the other hand, Asia Pacific is estimated to register strong growth in the market, exhibiting a notable CAGR during the projection period.
Besides, Europe is anticipated to be the second-fastest growing region in the crypto wallets market, followed by North America. The region is predicted to grow by 2.7x during the forecast period. Utilization and awareness associated with the advantages of utilizing cryptocurrencies across Europe are increasing and ultimately creating enormous opportunities.
| Attributes | Key Statistics |
|---|---|
| Global Crypto Wallets Market Estimated Size (2023) | USD 1,505.9 million |
| Projected Market Valuation (2033) | USD 3,675.4 million |
| Value-based CAGR (2023 to 2033) | 9.3% |
| Collective Value Share: Top 5 Vendors | Around 35% |
The global crypto wallet market is expected to increase at 9.3% CAGR between 2023 and 2033 in comparison with the 7.2% CAGR registered from 2018 to 2022. When it comes to financing and holding a user’s virtual currencies, one of the main advantages of using a known cryptocurrency wallet is that users have a lot of currency substitutes to choose from. Those who are capable of buying a variety of coins will be able to effectively spread their financial assets while lowering risk and expanding the total earning potential.
Crypto wallets help to secure confidential keys, making cryptocurrencies safe and easily available. In short, it is a safe place to store users’ evidence of ownership. It also allows users to receive, deliver, and spend cryptocurrencies like Ethereum and Bitcoin.
The cold wallet segment by type is set to grow at a steady CAGR of around 10.6% during the forecast period. Stealing from a cold wallet would require access to or physical possession of the wallet, as well as any related PINs or passwords that have to be utilized to access the funds.
Rising Acceptance of Crypto among Retailers
Increasing adoption of cryptocurrency and rising acceptance of crypto payments by retailers can be prime differentiator in the highly competitive digital payment world. Crypto wallets are thus gradually obtaining customer familiarity with acceptance from retailers.
By integrating crypto wallets, the route of industries will change as they offer benefits like modern payment options. These wallets also provide a chance for virtual partnerships with retailers by eliminating currency barriers and raising the value of member data. Looking at consumers’ eagerness to adopt modern technologies, retailers may record the success and get an actual hold on crypto.
Innovation of Safety and Privacy Features
The presence of several account and privacy features in crypto wallets would make them an extremely secure sign-in method. They also require users to enter an encrypted login ID, which would ensure complete safety. A digital wallet keeps track of the blockchain location where a specific asset is held, in addition to the data encryption required to electronically authenticate transactions.
| Country | 2022 Value share in Global Market |
|---|---|
| Germany | 8.4% |
As per FMI’s study, Germany is estimated to create an absolute $ opportunity of USD 98.1 million by the end of 2033. Technological advancements in the crypto world are one of the major factors creating high revenues in Germany. A large number of crypto wallets are obtainable in Germany such as BitGo, ZenGo, and eToro owing to their various excellent usage. Thus, rapid digitization in the field of crypto wallets is driving the German market.
In March 2022, for instance, German fintech Naga (N4G) which provides investment in crypto and stock via its mobile app, announced that its new crypto trading platform will begin operating on March 7. The social trading platform named Nagax is set to focus on cryptocurrencies and feature a crypto exchange, as well as a crypto wallet with more than 50 assets. The launch of similar unique platforms by start-up firms in Germany is anticipated to boost growth.
| Country | 2022 Value share in Global Market |
|---|---|
| United States | 18.4% |
The presence of major vendors in the country such as Gemini Trust Company, LLC, BitGo, and BitPay among others is one of the significant factors driving the market. The entry of various new companies in the field of cryptocurrency is another vital factor that would spur growth in the USA.
In September 2021, for instance, Robinhood, a USA-based financial services company, debuted a feature that would deliver traders more control over digital tokens in its new expansion in the cryptocurrency space. The newly public brokerage announced that it is testing crypto wallets with select clients. The novel wallet would enable investors to receive, send, and trade digital currencies, as well as move them in and out of the company’s app.
| Country | Value CAGR (2023 to 2033) |
|---|---|
| India | 12.3% |
India is anticipated to grow at an impressive rate of around 12.3% CAGR between 2023 and 2033. Growing technological advancement has led to the development of new crypto wallets in India. The ability of these wallets to secure users’ assets in one place would further lead to market expansion. In May 2022, for instance, Wirex announced the expansion of its range of top-up methods on its non-custodial wallet for Indian users. It has added the popular payment option for purchasing crypto to make the digital economy more accessible for more than 1 billion people in India.
| Segment | 2022 Value share in Global Market |
|---|---|
| Hot Crypto Wallets | 68.7% |
| Trading Application | 38.7% |
The hot wallet segment is expected to showcase the highest market share in the upcoming decade. The segment held a market share of nearly 68.7% in 2022, says FMI. Hot wallets are simple to use and their storage is completely based online. Therefore, switching between online and offline is not necessary to complete a cryptocurrency transaction. Many people use mobile hot wallets to exchange or buy cryptocurrencies. Cold wallets, on the other hand, are not suitable for initiating transactions. Thus, various advantages offered by hot wallets over cold wallets are driving the segment.
The trading segment is anticipated to grow by 2.0x during the forecast period. Many trading applications offer a broad selection of cryptocurrencies for trading, including both well-established coins like Bitcoin and Ethereum, as well as numerous altcoins. This variety can appeal to traders looking to diversify their holdings. Many trading platforms are available across different devices, including web browsers and mobile applications. This makes it convenient for users to access and trade cryptocurrencies on the go. Top trading applications continuously innovate and upgrade their services to stay ahead of the competition and meet the evolving needs of the market. These benefits offered by the peer-to-peer payment methods are driving the segment.
The BFSI sector is estimated to grow by 2.1x during the forecast period, finds FMI. The sector uses crypto wallets and public blockchains comprising stablecoins to speed up their payment procedures. Blockchain technology offers a quicker and more inexpensive substitute for clearing houses when processing transactions. Settlements and clearing could happen at a much quicker rate if banks use blockchain technology. Thus, increasing the use of crypto wallets to make transactions safe and simple is driving the segment.
Key businesses in the global crypto wallets market are focusing on strategic partnerships with other vendors to develop technologically advanced wallets to serve their customers. A few other key players are engaging in mergers and acquisitions with local companies worldwide to co-develop new applications equipped with unique features.
For instance
Gemini, BitGo, and Binance Are Pioneering Full-blown Crypto Wallets to Transform the Way People Transact
Gemini, BitGo, and Binance are expected to remain at the forefront in the field of cryptocurrency. Gemini announced the introduction of Gemini Staking, which allows clients to collect staking benefits in their Gemini accounts. The platform provides a smooth approach to further discovering the world of cryptocurrency while also assisting in the security and validation of blockchain transactions, with yield earned by crypto incentives given out to validators.
With Gemini Earn, the company collaborates with accredited and thoroughly screened third-party borrowers to provide its customers with yields created by the payment of interest on lent assets. For instance, in March 2020, the company collaborated with Itiviti to enable cryptocurrency holders to trade on Itviti's NYFIX.
BitGo, on the other hand, is progressing at a fast pace in the crypto wallets space by providing new security features. The company is planning to secure wallets on certain blockchains using a technology called Threshold Signature Scheme (TSS) in order to support new coins and reduce transaction fees.
BitGo is the first company to bring a Travel Rule solution to the market for its custodial clients. The company’s application programming interface (API) network will allow clients with both cold and hot wallets to attach the additional data necessary by the new regulation. For instance, in April 2020, BitGo purchased Lumina, which is a supplier of software solutions that provides digital asset dealers with a financial platform to promote mass adoption by bridging the gap between traditional finance and crypto.
Similarly, Binance, a leading firm that provides API services, is committed to ensuring the global crypto ecosystem's secure and sustainable growth. Its services include combating various types of ransomware and fraud. The company has developed a new API service to enable customers to quickly track their cryptocurrency operations and help them to meet their country's regulatory standards. For instance, in August 2022, Binance announced its plans to launch Binance Account Bound (BAB), which is the first Soulbound Token (SBT) created on the BNB Chain. BAB will be first offered as a prototype project and will only be available via the Binance mobile app.
| Attribute | Details |
|---|---|
| Estimated Market Size (2023) | USD 1,505.9 million |
| Projected Market Valuation (2033) | USD 3,675.4 million |
| Value-based CAGR (2023 to 2033) | 9.3% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | Value (USD million) |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia & Pacific; and the Middle East & Africa |
| Key Countries Covered | USA, Canada, Germany, United Kingdom, France, Italy, Spain, Russia, China, Japan, South Korea, India, Malaysia, Indonesia, Singapore, Australia & New Zealand, GCC Countries, Turkey, North Africa and South Africa |
| Key Segments Covered | Type, Application, Industry, Region |
| Key Companies Profiled | Gemini Trust Company LLC.; BitGo; Binance; BitMEX; Breadwinner AG (BRD); Trezor; BitPay; Ledger SAS; Bittrex Global; Exodus; ARCHOS; BitLox; Coinkite Inc.; OPOLO SARL; ZenGo Ltd |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The market size of crypto wallets is USD 1,505.9 million in 2023.
The market demand for crypto wallets is rising at 9.3% CAGR.
The crypto wallets are expected to gain USD 3,675.4 million by 2033.
Surging acceptance of crypto among retailers and innovation in privacy and safety features are fueling the market growth.
The leading market competitors are BitGo, Binance, and BitMEX.
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Crypto Wallets Market
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