Per the analysis, the rising number of product launches will facilitate the growth of cryptocurrency mining hardware, that will purportedly register a compound annual growth rate (CAGR) of more than 10% by 2023.
The report suggests that one of the major drivers of the cryptocurrency mining hardware market growth worldwide is the increasing demand for cryptocurrency-specific hardware, such as field-programmable gate array (FPGA) processors and application-specific integrated circuits (ASICs).
The high operational cost that results in low-profit margins reportedly remains one of the challenges to growth of the global digital currency mining hardware market, while the increasing number of crypto-related startups that cease their operations will also affect the growth of the market.
Low prices during the crypto bear market in 2018 affected crypto miners and hardware producers alike. In its Q3 2018 earnings report, computer hardware manufacturer Nvidia announced it was experiencing a “crypto hangover” as a result of inventory excess that was the result of decreased demand for its graphics processing units from crypto miners.
In February, cryptocurrency mining service Coinhive announced its closure, as the project had reportedly become economically inviable. Coinhive reportedly had to shut down its services amidst a 50 percent decline in hash rate following the last Monero hard fork. The firm said its would halt operations on March 8, 2019, while users’ dashboards will be accessible until April 30, 2019.