The investment in blockchain technology and rising use of blockchain technology solutions for ensuring enhanced security in BFSI sector is driving the global blockchain market.
The global Blockchain market size is expected to reach close to USD 213.76 Billion by 2029 with an annualized growth rate of 54.7% through the projected period.
Covid-19 Impact & Market Status
The COVID-19 epidemic forced the closure of most manufacturing facilities, disrupting the entire economy and digital technology investment. The new coronavirus, on the other hand, functioned as a catalyst for digital ledger solutions.
Due to the epidemic, every industry, from government to retail, has resorted to digitization in order to sustain corporate operations. Identity protection, supply chain transparency, and health record security are all features of the technology. As a result, the market share is projected to grow as digital technologies become more widely used.
The epidemic has created an opportunity for cloud-based services by requiring businesses to adopt a new approach for allowing employees to work from home. The need for cloud-based solutions to create virtual work platforms has increased dramatically. As a result, demand for software as a service is expanding across sectors to assure employment continuity. B-a-a-S is a fantastic answer for the problems that small and medium-sized businesses (SMEs) face (SMEs). SME's using cloud-based solutions are installing distributed ledger-based services to protect digital entities and verify human identities, resulting in a surge in demand for B-a-a-S goods.
BFSI and IT firms are using digital ledger technologies to protect their customers' financial information and identities. Cross-border transactions, credit reporting and other tech applications are also providing multiple growth opportunities for BFSI sector in the market. As a result, one of the growing drivers expected to fuel market expansion is increased awareness of data security from malware activities among organisations and consumers.
The Service Segment Is Poised for Strong Market Growth
The largest market share will be held by blockchain-as-a-service (B-a-a-S). Throughout the Prediction Period. Increasing demand of blockchain in various industries as Ripple, R3 Corda, Ethereum, Hyperledger Fabricis leading to market expansion.
Private Segment Held the Largest Market Share
The ability to provide reverse transactions is expected to drive exponential growth in public blockchain. The market is separated into three types: public, private, and consortium. Due to its capacity to limit involvement in transactions and consensus procedures, the private category is predicted to have the biggest market share. Private solutions and services are used for reverse transactions and for modifying legislation.
When numerous organisations operate in the same sector and use a common platform to expedite operations, a consortium, also known as a federated digital ledger, is helpful. The consortium model provides a collaborative platform for major corporations to encourage innovation.
Proof-of-Concept Segment to Witness Strong Market Growth
The proof of concept segment held the largest market share in 2020 and is anticipated to witness strong market growth in the forecast span 2021-2028. The key factors such as rapid adoption of proof of concept to accelerate online transaction services in all the sectors across the world are driving the growth of proof-of-concept segment in the market.
Payment Systems in Expected to Witness Consistent Market Growth
Payment to Encourage Consistent Growth As a result of the increased use of cloud services. he digital identity application is predicted to expand at the quickest CAGR throughout the forecast period. The increase is attributed to an increase in the number of identity frauds and cyber-attacks taking place throughout the world.
BFSI Segment Dominated the Market
BFSI held the largest market share in 2020 and is anticipated to Hold Highest Market Share in forecast years 2021-2028 owing to factors such as Rising Adoption of Digital Ledger Solutions, digital ledger solutions and services.
North America Held Lion’s Share
North America is predicted to have the lion's share of the market in 2020. The presence prominent players like Digital Asset, AWS, Oracle, IBM, Microsoft and others is also driving its share in the market. Furthermore, the North American market is quite diversified. As a result, market participants are concentrating their efforts on expanding their geographical presence by offering tailored services to consumers throughout the area.
The increasing need for integrating technology that provides verification and traceability of multiple level transactions are improving the reliance on blockchain technology furthering the development of global blockchain technology market.
Owing to benefits such as verification and traceability of multistep transactions, secure transactions, reduced compliance costs, faster data processing, audit of origin of product, contract management, the blockchain technology is experiencing rapid adoption as opposed to conventional security technologies, thus fostering remarkable progress in global blockchain technology market.
The key factors such as introduction of 3rd and 4th generation blockchain solutions, bloackhain as a service adoption across businesses, increasing demand for skilled blockchain worforce, growing integration of blockchain with technologies like big data and artificial intelligence, emerging Metaverse are driving the global blockchain market.
Unique features specific to blockchain devices such as transparency, reliability, and robust network security make them indispensable for the financial service industry. Novel initiatives toward risk management to address fraudulent transactions have paved new avenues for blockchain device inclusivity in recent times.
Growing adoption across developed economies in Europe and North America to revolutionize insurance, finance, and banking sectors. These developments are favoring a revolution in the blockchain device space. Besides reliability and transparency in the transaction history, the insurance sector is banking upon blockchain devices to improve customer experience, cost management, and smoothen operations for secured data sharing and management.
Several insurance-relevant initiatives are shaping up to improve insurance offerings. CioSy is one such kind that broadly is a blockchain device-based insurance infrastructure to enable automated and tamper-resistant insurance solutions. Based on smart contracts CioSy is designed on Ethereum blockchain to use automation for policy processing, insurance claim handling, and the like.
The advantages such as secured transactions, reduced costs, improved visibility and traceability, faster speed of data processing, increased safety and privacy to personal and organizational assets encourage further adoption of blockchain technology.
Blockchain technology is a shared, immutable ledger processes safe transactions and tracks assets in a business network.
The factors such as investment in blockchain technology and rising use of blockchain technology solutions for ensuring enhanced security in BFSI sector is driving the global blockchain market.
However, security concerns, significant costs, high energy consumption, non-eco-friendly, no regulations, lack of skilled workforce, low scalability are some key factors hampering the adoption of blockchain technology thus impeding the global blockchain technology market.
Furthermore, introduction of 3rd and 4th generation blockchain solutions, bloackhain as a service adoption across businesses, increasing demand for skilled blockchain worforce, growing integration of blockchain with technologies like big data and artificial intelligence, emerging Metaverse trends are anticipated to be a growth opportunity to the global blaockchain market.
The major players in the global blockchain market are AWS, IBM, Dragonchain, Leewayhertz, Blockpoint, Blockchain Foundry, Stratis, RecordsKeeper, Consensys, Factom, NTT Data, Infosys, Spinsys, Auxesis Group, Applied Blockchain, BigchainDB, Symbiont, Cegeka, Guardtime, Blockcypher, Bitfury, Wipro, Accenture, Huawei, Oracle, Intel, and SAP.
Latest Innovations in Global Blockchain Market: A Snapshot
- In March 2021, Amazon Web Services (AWS) announced the general availability of Ethereum.
Blockchain Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2030||USD 213.76 Billion|
|Growth Rate||CAGR of 54.7 % during 2022-2030|
|Segment Covered||By Providers, By Application, By Vertical, Region.|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||Oracle, IBM Corporation, SAP, Amazon Web Services, Intel Corporation, Antier Solutions, Cegeka, Earthport, Guardtime, and Microsoft Corporation.|
Key Segments of the Global Blockchain Technology Market
Component Overview, 2018-2028 (USD Billion)
Type Overview, 2018-2028 (USD Billion)
Application Overview, 2018-2028 (USD Billion)
- Financial exchanges
- Real estate
- Money transfers
- Personal information
- Smart lending
Deployment Overview, 2018-2028 (USD Billion)
- Proof of Concept
Industry Overview, 2018-2028 (USD Billion)
Regional Overview, 2018-2028 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa