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The cryptocurrency mining hardware market size is forecast to increase by USD 16.09 billion, at a CAGR of 13.2% between 2023 and 2028. 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 such operations. The metaverse is anticipated to impact cryptocurrency markets significantly, with virtual economies driving further demand for mining and blockchain technologies. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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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 analyzed the market research and growth data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
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.
Further, the adoption of cloud mining is growing. In cloud cryptocurrency, customers invest in a cloud-hosted cryptocurrency 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.
Additionally, 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.
Accordingly, 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.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market 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.
Canaan Inc. - The company offers Avalon miner A1126 PRO S 64T.
The research report also includes detailed analyses of the competitive landscape of the market and information about 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.
In the realm of market, the proliferation of computers has fueled demand, but with it come security concerns surrounding transactions and data privacy. The Internet penetration rate has facilitated the spread of mining activities, with devices like Antminer D3 and Bitmain Antminer S7 dominating the landscape. Central to mining operations are components like Central Processing Units (CPUs), Graphics Processing Units (GPUs), and Field Programmable Gate Arrays (FPGAs), alongside specialized hardware such as Application-Specific Integrated Circuits (ASICs). Whether through PC or CPU mining, Ripple or self-mining, the market for cryptocurrency mining equipment continues to evolve, driven by technological advancements and market demand.
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 7.12 billion in 2018. 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.
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North America is estimated to contribute 40% to the growth of the global market during the forecast period. 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 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 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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
region.
Cryptocurrency mining hardware remains at the forefront of innovation and technological progression, driven by factors such as digital payments and the rise of peer-to-peer networks. As central banks explore the potential of Central Bank Digital Currency (CBDC), the market sees increased digitization and adoption of advanced technology. However, challenges persist, including fraud and managing big data. The sector attracts both small- and medium-sized Bitcoin companies and established players, leveraging APIs and high-speed 3G and 4G networks to enhance operations. Mining rigs, powered by Central Processing Units (CPUs), Graphics Processing Units (GPUs), and Field Programmable Gate Arrays (FPGAs), drive hash rates and power efficiency in data centers worldwide. Amidst global regulatory environments and cryptocurrency price volatility, the industry navigates complexities while embracing blockchain technology for decentralized ledger systems and Ethereum smart contracts.
Further, the market is experiencing a surge driven by mergers and acquisitions activities and the decentralized nature of peer-to-peer networks. As miners seek to process vast amounts of data with greater efficiency, they turn to cutting-edge technologies like artificial intelligence and leverage APIs for enhanced connectivity. With the growing number of internet users and the adoption of cloud-based services, the demand for powerful mining rigs equipped with Central Processing Units (CPUs), Graphics Processing Units (GPUs), and Field Programmable Gate Arrays (FPGAs) intensifies. Meanwhile, factors such as the global regulatory environment and Bitcoin difficulty adjustments pose challenges, while innovations in energy efficiency and decentralized ledger systems drive the market forward.
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Market Scope |
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Report Coverage |
Details |
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Page number |
171 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 13.2% |
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Market Growth 2024-2028 |
16.09 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
11.4 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 40% |
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Key countries |
US, China, Russia, Germany, and Ireland |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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 Corp., INNOSILICON Technology Ltd., Intelion Mine LLC, Marathon Digital Holdings Inc., NiceHash Ltd., Riot Blockchain Inc., Spacemesh, Shenzhen Jingang Zhuoyue Co. Ltd, and Shenzhen MicroBT Electronics Technology Co. Ltd |
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Market dynamics |
Parent market analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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