First of all, the full meaning of RAID is Redundant Array of Inexpensive Disks. Hardware RAID refers to the type of RAID that was initially available, where the drive is handled by a RAID controller that is specially built, to make the whole process transparent to the host computer. On the contrary, software RAID is happens to be a newer and modern type of RAID that needs no specialized hardware, and the host computer takes responsibility for the drives.
The hardware RAID, however, is considered to be of better performance and reliability compared to software RAID. Due to these factors of the two RAIDs, the hardware RAID is found to be more expensive than the software RAID. The software RAID handles just a portion of the host processor, while the hardware RAID controller handles all the host processor operations. A software RAID data are also more liable to be corrupted, while the hardware RAID seems to be more secure.