The hardware encryption market will explode in value to reach $166bn by 2018, a new report has suggested.
A new market research report estimates growth at a rate of 62% over the next five years, and is predicted to reach $15bn by the end of 2013.
Research company Markets and Markets’ report believes the growth will be driven by the fact that hardware encryption is generally a much faster process than software encryption.
In software encryption, the resources of the device on which the software is installed are used for encrypting and decrypting the data, whereas hardware contains a dedicated processor for the tasks.
Anther advantage of hardware encryption is that the cryptographic key is stored in a separate inaccessible portion of memory storage, thus making it more secure than software encryption.
The current cost of adding hardware encryption capability to storage products is still high, at an average of $20 – $30.
Also, hard disk drive prices rose following the 2011 flooding in Thailand and the earthquake in Japan, where manufacturing plantswere based.
The report blames these external factors on a delayed adoption of hardware encrypted products. However, the market is believed to be reviving, with product prices falling.
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