Cryptocurrency Mining Hardware Market Expected to Reach $5 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Cryptocurrency Mining Hardware Market,"By Type (Central Processing Unit, Graphics Processing Unit, Application-Specific Integrated circuit, and Field Programmable Gate Array), By Coin (Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance Coin (BNB) and Others) and By Application (Enterprise, and Personal): Global Opportunity Analysis and Industry Forecast, 2023-2032." The cryptocurrency mining hardware market was valued at $1.8 billion in 2022, and is estimated to reach $5 billion by 2032, growing at a CAGR of 11.4% from 2023 to 2032.

Bitcoin and numerous other cryptocurrencies service the mining progression to produce a new exchange and validate fresh transactions. Bitcoin operates on a distributed network or decentralized computer network that keeps track of cryptocurrency. New bitcoins are generated or mined when machines on the system authenticate and process the transaction. The transaction is processed by these computer networks, or miners, in return for a Bitcoin reward. 

Furthermore, increase in adoption of digital currency and increase in adoption of Bitcoin is boosting the growth of the global market. In addition, increase in use of digital transformation technology is positively impacts growth of the market. However, high cost of cryptocurrency mining hardware and increasing security concerns is hampering the cryptocurrency mining hardware market growth. On the contrary, increasing internet penetration rate and rising launch of advanced cryptocurrency mining processors is expected to offer remunerative opportunities for the expansion of the market during the forecast period. 

Depending on type, the ASIC segment holds the largest cryptocurrency mining hardware market share owing to, high hashing power, and customizability for specific action operations. However, the GPU segment is expected to grow at the highest rate during the forecast period, owing to the rise in the adoption of GPU by various crypto providers to improve their operational efficiency and control various processes. 

Region-wise, the cryptocurrency mining hardware market size was dominated by Asia-Pacific in 2022 and is expected to retain its position during the forecast period, owing to growing demand for cryptocurrency-specific hardware and the rising popularity of mining pools. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to the region has large concentration of players, owing economies of scale specifically in China. 

The cryptocurrency mining hardware market has witnessed stable growth during the COVID-19 pandemic, owing to 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. Moreover, 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. In addition, consumer demand has also subsequently reduced as individuals are keen on eliminating non-essential expenses from their respective budgets as the general economic status of most individuals has been severely affected by this outbreak. These elements are expected to burden the revenue trajectory of the global cryptocurrency mining hardware market during the forecast period.

However, as respective governing authorities begin to lift these enforced lockdowns, the global cryptocurrency mining hardware market has recovered accordingly.  The integration of advanced technologies such as AI and blockchain in mining helps the industries to improve various aspects of a company such as perception, reasoning, learning, and problem solving of the human mind for detecting and predicting risks, which, in turn, drives the growth of the crypto miner hardware.

Moreover, various public and private entities are expected to come together to create ecosystems to share data for multiple use cases under a common regulatory and cybersecurity framework, which, in turn, is expected to provide lucrative opportunity for the growth of the global market. Several market players in the market are focusing on venture capital investments to raise funding for enhancing the product portfolio and cementing the cryptocurrency mining hardware market trends. These investments are expected to create new opportunities for the growth of the market during the forecast period. For instance in May 2023, Cormint, a Bitcoin (BTC) mining company, raised $30 million in a Series A funding round to build a data center with 2.4 exahash/second (EH/s) of computing power in Fort Stockton, Texas.

Furthermore, 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 the aim to connect mining farms and hardware owners in an efficient manner and eventually make cryptocurrency mining device more sustainable. Therefore, such strategic initiatives drive the market growth. 

Key Findings of the Study 

• By type, the application-specific integrated circuit segment accounted for the largest cryptocurrency mining hardware market share in 2022. 

• Region wise, Asia-Pacific generated highest revenue in 2022. 

• Depending on application, the personal segment generated the highest revenue in 2022. 

The key players profiled in the cryptocurrency mining hardware market analysis BITMAIN Technologies Holding Company, INTELION MINE LLC, INNOSILICON Technology Ltd, NVIDIA Corporation, Zhejiang Ebang Communication Co,Ltd, Advanced Micro Devices, Inc., Parallel Miner, Canaan Inc., AsicMinerz, and Bitfury Group Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the cryptocurrency mining hardware industry.