KEY POINTS

  • Blockchain devices to grow to $2.46B by 2026: industry report
  • Hardware wallets will hold the largest market share
  • Market for wireless blockchain will grow at the highest rate

Blockchain devices, including cryptocurrency ATMs, hardware wallets and others will grow from $482 million in 2021 to $2.46 billion by 2026.

The key drivers of this market are growing awareness of blockchain adoption and the development of blockchain technology in retail and supply chain applications, research firm Markets and Markets said in a report.

Particularly, the crypto ATM market, which has seen a growing interest in recent times, is expected to grow from $16.3 million in 2018 to $144.5 million by 2023, at a CAGR of 54.7%, the report said, adding that increasing fund transfers in developing countries, fluctuating monetary regulations, and increasing installations of crypto ATMs in places like restaurants, bars, general stores and gas stations were driving the growth of the market.

The report found that the demand for 2-way crypto ATMs is growing due to their multifunctionality features. For context, a 2-way ATM allows a user to buy cryptocurrencies and also sell them using a single machine. These ATMs are mainly installed in North America.

The North American crypto ATM market is expected to hold the largest share of the crypto market by 2023, the report said. The expectation is that the U.S. will continue dominating the market during the forecast period owing to the presence of a large number of crypto ATM hardware and software providers and a sound investment environment. 

However, the uncertain regulatory status of cryptocurrencies and lack of awareness and technical understanding regarding cryptocurrencies can become roadblocks for the crypto ATM manufacturers and operators, the report noted. 

Among the other key findings in the report are that hardware wallets will lead by the market share, and that wireless blockchain devices will grow at the highest rate. 

Earlier in October, a similar report had forecast that the global crypto ATM market is expected to hit $3.55 billion by 2030, registering a CAGR of 58.5% from 2021 to 2030.

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