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The Global Cryptocurrency Mining Hardware Market is estimated to grow by USD 12.06 billion at a CAGR of 11.35% between 2022 and 2027. The market is witnessing remarkable growth, driven by several key factors. These include the profitability of cryptocurrency mining ventures, increasing demand for specialized hardware tailored for cryptocurrency mining, and the burgeoning popularity of mining pools. However, the market's expansion has raised concerns about escalating energy consumption in certain regions, attributed to the substantial power demands of mining operations. This market research and growth report includes an in-depth analysis of the key market drivers, trends, and challenges during the forecasted period.
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The market is at the forefront of the digital revolution, driven by the widespread adoption of cryptocurrencies like Bitcoin, Ethereum, and Litecoin. As virtual ledgers gain prominence, the demand for specialized hardware with robust processing power intensifies, enabling efficient mining operations. However, alongside this rapid growth comes heightened security concerns, highlighting the critical role of advanced digital transformation technology in safeguarding transactions. Moreover, the market's trajectory is influenced by factors such as internet penetration rates and evolving self-mining practices.
In the market, a range of specialized equipment is utilized to mine various cryptocurrencies efficiently. Leading hardware options include the Antminer S19 Pro-ASIC, AvalonMiner 1246, and Antminer D3, among others, each designed to optimize mining performance. These mining rigs employ advanced technologies such as Central Processing Units (CPUs), Graphics Processing Units (GPUs), Field Programmable Gate Arrays (FPGAs), and Application-Specific Integrated Circuits (ASICs) to process cryptocurrency transactions and secure blockchain networks.
While some miners opt for traditional PC or CPU mining methods, others invest in dedicated hardware solutions to enhance mining efficiency and profitability. Popular cryptocurrencies like Ripple are mined using specialized equipment, contributing to the ecosystem. Additionally, cloud mining services offer an alternative approach to cryptocurrency mining, allowing users to lease mining equipment remotely. Overall, the market continues to evolve, driven by advancements in hardware technology and the growing popularity of cryptocurrencies.
The market share growth by the ASIC segment will be significant during the forecast period. Application-specific integrated circuit (ASIC)-based hardware solutions are designed for specific purposes. ASIC-based solutions are used to process and record the transaction of cryptocurrencies efficiently. ASIC-based solutions are built to solve a single hash algorithm. For instance, a Bitcoin mining ASIC-based hardware solution can only mine Bitcoin. Though customization limits the use of ASIC-based hardware solutions to specific cryptocurrencies, it makes the process of mining cryptocurrency quicker. For instance, a dedicated ASIC-based Bitcoin hardware solution can process hashes 100,000 times faster than a high-end general-purpose processor, and it is also several times faster than customized GPUs.
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The ASIC segment showed a gradual increase in market share, from USD 6.47 billion in 2017, and continued to grow by 2021. ASIC mining hardware solutions are widely manufactured in China by Bitmain. The company offers ASIC mining hardware solutions, such as the Antminer Series, which are widely used by miners as they offer better efficiency and hash rates, as well as consume less power than GPU mining hardware. Hence, miners prefer ASIC hardware solutions as they enable them to remain profitable even if the value of cryptocurrency declines beyond a certain level. The high initial cost of ASIC hardware solutions and the significant operational expenses required using these solutions make it necessary for the value of cryptocurrencies to remain high so that miners can make profits.
Hence, a decline in the value of cryptocurrencies will negatively affect the profit margins or cause losses for small miners, which will prevent them from investing in new ASIC hardware solutions. Such a rise in the value of cryptocurrencies can impact the demand for ASIC mining hardware solutions and, in turn, will fuel the growth of the market in focus during the forecast period. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segment along with their reasons for growth from 2017 to 2027. The growth of this segment is primarily attributed to the increasing adoption of the market by residential consumers, which is driven by an increase in the global demand for the industry.
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North America is projected to contribute 41% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US is the major contributor of revenue to the market in North America due to the presence of several such ventures; many other cryptocurrency mining ventures are also planning to commence operations in the country. Such ventures are expected to propel the growth of the market in focus on North America during the forecast period. Additionally, Canada is expected to become the regional hub for cryptocurrency mining during the forecast period due to the ban on the trading and mining of cryptocurrency in China, encouraging several cryptocurrency mining ventures in China to relocate their operations to Canada. The low cost of electricity generation from renewable sources, easy access to high-speed Internet, and favorable climatic conditions also encourage several cryptocurrency mining ventures to set up their businesses in Canada. Hence, such new data mining centers will positively impact the growth of the market in focus on North America during the forecast period.
The market is witnessing significant growth fueled by the surge in self-mining activities and the widespread adoption of cryptocurrencies. With Bitcoin, Ethereum, and Litecoin leading the charge, virtual ledgers are reshaping financial landscapes worldwide. High-performance mining equipment such as the Antminer S19 Pro-ASIC and AvalonMiner 1246 are pivotal in harnessing processing power for digital currency extraction. As digital transformation technology continues to evolve, concerns regarding security persist, highlighting the importance of robust hardware solutions. From Central Processing Units to Application-Specific Integrated Circuits, mining hardware options cater to diverse mining preferences, including cloud mining and participation in mining pools. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The profitability of cryptocurrency mining ventures is a key factor driving the market growth. These miners earn a small profit in cryptocurrency for every successful transaction, based on their quantity of work, which includes the processing power used by the hardware. It is a slow and cumbersome process, which is not profitable on a small scale. Hence, cryptocurrency miners set up large-scale dedicated rigs to increase the profits of their ventures. The adoption of cloud mining is growing. In cloud cryptocurrency, customers invest in a cloud-hosted cryptocurrency mining venture, which transfers a certain share of the earned cryptocurrency to its customers. The cloud-hosted venture uses the investment to improve the process by buying CPU power from a data center that uses its own equipment to mine cryptocurrency. The profitability of cryptocurrency ventures will lead to the entry of several small-scale operators, which will drive the growth of the market during the forecast period.
The acceptance of cryptocurrency by retailers will fuel the market growth. The acceptance of cryptocurrencies such as Bitcoin and Ether has increased for daily transactions among the public, retailers, and merchandisers. The growing use by major retailers will improve public perception and the use of cryptocurrencies for financial transactions. In the past, they have been used to purchase vehicles and order food and groceries. Companies currently accept cryptocurrency payments only in partnership with third-party exchanges such as iPayYou, which handle the cryptocurrency-to-cash conversion. Bitcoin value grows at a faster rate than that of inflation and allows businesses to have sufficient savings for unexpected events. Thus, for small businesses and retailers alike, they must accept it as an alternative form of payment. Thereby, the acceptance will propel the growth of the market in focus during the forecast period. Hence, the increasing acceptance of cryptocurrency by retailers will drive the growth of the market trends during the forecast period.
The volatility in the value of cryptocurrency is a major challenge to the market growth. The value of cryptocurrency is extremely volatile. Hence, low-risk investors do not include cryptocurrency in their financial portfolios. The fluctuation in value is due to the significant share of cryptocurrency held by a limited number of people who buy and sell high volumes on trading platforms and trade exchanges. The lack of transaction charges, position charges, trade posting fees, and regulations on trading platforms also causes volatility in the value of cryptocurrency. Hence, people who hold a significant share of cryptocurrency manipulate the value to increase their profits without making any actual investments. Therefore, several investors have refrained from including cryptocurrency in their financial portfolios, which is a challenge for the growth of the market.
Our analysis of the life cycle of the market indicates a movement from the innovator’s stage to the laggard’s stage. The market growth and forecasting report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries including the US, China, Russia, Germany, and Ireland. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market
Our market research and growth report also have detailed analyses of the market’s competitive landscape and offers information on 20 market companies, including :
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The market is propelled by technological advancements like application-specific integrated circuits (ASICs), including popular models like the Bitmain Antminer S7. These advancements enable efficient cryptocurrency mining operations, whether through traditional methods like PC or CPU mining or specialized hardware. However, alongside the benefits come security concerns, particularly regarding data and financial transactions on virtual ledgers like Bitcoin's public ledger. Despite challenges, the industry witnesses technological progression and increased mergers and acquisitions activities, driven by the growing adoption of digital payments and the emergence of central bank digital currencies (CBDCs). Moreover, the expansion of peer-to-peer networks and cloud-based services supports its proliferation, emphasizing power efficiency and data security.
The market is witnessing exponential growth, driven by the rapid expansion of digital currency ecosystems and the ongoing digital transformation technology revolution. As Internet penetration rates soar, so does the demand for innovative mining hardware solutions leveraging advanced technology. With the emergence of Central Bank Digital Currency (CBDC) initiatives, the industry is experiencing a profound digitization wave. However, alongside these opportunities come challenges, including concerns about fraud and the need for robust security measures. Mining hardware, powered by big data, artificial intelligence, and cutting-edge technologies, is pivotal for small- and medium-sized Bitcoin companies, enabling efficient operations and mining processes. This market also caters to the diverse needs of game developers and enterprises, with a wide range of products including ASICs, CPUs, and GPUs, optimizing it within data centers and beyond.
The market is bustling with innovation, driven by the rising demand for efficient mining solutions. As digital currencies like Litecoin and Ripple gain prominence, specialized hardware such as Antminer S19 Pro-ASIC, AvalonMiner 1246, and Antminer D3 are in high demand. These devices leverage cutting-edge technologies like Central Processing Units (CPUs), Graphics Processing Units (GPUs), and Field Programmable Gate Arrays (FPGAs) to enhance mining efficiency. From traditional computers to dedicated cryptocurrency mining equipment, the market offers a diverse array of solutions catering to both individual miners and large-scale operations. With the advent of self-mining, the industry is witnessing a paradigm shift towards decentralized mining practices, further fueling the growth of this dynamic market.
Our market growth analysis report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by product, application, and region.
Market Scope |
|
Market Report Coverage |
Details |
Page number |
120 |
Base year |
2022 |
Historical year |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.35% |
Market growth 2023-2027 |
USD 12.05 billion |
Market structure |
Fragmented |
YoY growth (%) |
10.71 |
Regional analysis |
North America, Europe, APAC, South America, and the Middle East and Africa |
Performing market contribution |
North America at 41% |
Key consumer countries |
US, China, Russia, Germany, and Ireland |
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
Key companies profiled |
Argo Blockchain Plc, BIT Digital Inc., Bitfarms Ltd., BitMain Group, Canaan Inc., Ebang International Holdings Inc., Elite-Mining Inc., ePIC Blockchain Technologies Inc., Genesis-Mining Ltd., GMO Internet Group Inc., Helium Systems Inc., HIVE Blockchain Technologies Ltd., Hut 8-Mining Corp., Intelion Mine LLC, Marathon Digital Holdings Inc., NiceHash Ltd., Riot Blockchain Inc., Shenzhen Fusionsilicon Semiconductor Co. Ltd., Shenzhen Jingang Zhuoyue Co., Ltd, Shenzhen MicroBT Electronics Technology Co. Ltd, and Spondoolies Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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