The Global Blockchain Market is expected to grow from USD 1.59 billion in 2019, to reach USD 201.01 billion by 2028, growing at a CAGR of 71.1% during the forecast period. Increasing demand for this technology across financial services, consumer and industrial products, technology, media and telecommunications, healthcare, transport, and government sectors is expected to drive the blockchain market during the forecast period.
Blockchain technology functions as an electronic system for processing transactions and record keeping. This allows varying respondents connected to the network, basically public, to track information through a reliable network, thereby eliminating the need for any kind of verification by third parties. Increasing internet-based transactions, currency digitization, and reliable online payment gateways are just a few of the main factors projected to drive demand in the upcoming years. Because of the extensive advantages of this technology, the blockchain market is expected to exhibit significant growth, such as eliminating the need for any financial institution to authenticate transactions, eliminating reconciliation, decreasing duplicative recordkeeping, facilitating quicker settlement and minimizing the error rate. This technology enables access to databases from everywhere, allowing it to be used concurrently by various entities to put different systems nearer and assist in enhancing effectiveness.
Smart contracts application segment is projected to be the largest contributor to the blockchain market growth during the forecast period. Smart contracts are projected to retain the biggest market share in 2019 as it is one of the most crucial applications in the blockchain market. Smart contracts deployed through the blockchain network ensure that the terms and conditions of the contract cannot be amended. Blockchain technology makes hacking or manipulating the data in contracts impossible for third parties. Therefore, organizations across industry end-users deploy smart contracts based on blockchain to lower the cost of verification, execution, arbitration, and prohibition of fraud.
The small-medium enterprise segment is estimated to grow at the highest rate in the blockchain market during the forecast period. Due to the need to streamline business processes cost-effectively across SMEs, the category of SMEs is expected to grow at the highest rate during the forecast period. In most SMEs, the acceptance of blockchain technology is currently in the experimental phase, but the adoption rate in the SME sector is anticipated to rise substantially in the coming years due to the low cost of infrastructure and transparency.
BFSI industry is the principal end-user of blockchain technology. It is anticipated that the BFSI sector will retain the highest share in the blockchain market during the forecast period. The BFSI industry has revealed the significance of blockchain technology that allows the protection of customer transactions. Blockchain technology in the BFSI industry is anticipated to expand rapidly worldwide owing to multiple factors such as high compatibility with the ecosystem of the financial services industry, rising cryptocurrencies and Initial Coin Offerings (ICOs), quick transactions, and reduced total ownership costs.
It is expected that North America will have the largest market size. Early adoption by regional organizations of blockchain technologies and the growth of several blockchain technology providers will contribute to the overall market share. North American businesses have acknowledged the ability of blockchain technology in providing improved customer experience, which is why they have started to adopt the technology to develop business applications. The Asia Pacific region is poised to grow at the highest rate in the blockchain market owing to technological revelations & fast-paced acceptance of blockchain technologies in this region especially in countries like China, India, South Korea & Japan. The Middle East economy still very skeptical about these technologies and hence, the growth of the blockchain market is expected to be very lethargic in this region during the forecast period.
Key Factors Impacting the Growth of Blockchain Market:
- Increasing the use of internet-based banking across the globe.
- Acceptance of blockchain technologies by various industries.
- Encrypted business transactions with a swift settlement period.
- Favorable government programs towards realizing the cashless economy.
Key Developments in the Blockchain Market:
- In September 2018, Chain has been acquired by Lightyear, a subsidiary of the Stellar Development Foundation, to form the combined company called Interstellar. The companies have joined forces to develop enhanced cryptographic ledgers to make financial services smarter, more secure, and more connected.
- In October 2018, SAP launched new network extensibility services that enable customers and partners to integrate different blockchain infrastructures.
- In November 2018, Microsoft collaborated with Interswitch Group, a Nigeria-based electronic payment, and digital commerce solutions provider. The collaboration resulted in the launch of blockchain-based supply chain financing services to ensure fast and seamless trade financing in the entire supply chain system.
What Does This Report Provide?
This report provides a detailed understanding of the global blockchain market from qualitative and quantitative perspectives during the forecast period. The report also provides dynamic indicators with a potential impact on the market during the forecast period and an in-depth analysis of the leading companies operating in the blockchain market.
Years Considered In The Study
By Organization Size:
- Small & Medium-sized Enterprises
By End User:
- Healthcare and Life Sciences
- Transportation and Logistics
- By Country (US, Canada, Mexico)
- By Country (Germany, UK, France, Italy, Spain, Rest of Western Europe)
- By Country (Russia, Turkey, Rest of Eastern Europe)
- By Country (China, Japan, India, South Korea, Australia, Rest of Asia Pacific)
- By Country (UAE, Saudi Arabia, Qatar, Iran, Rest of Middle East)
- By Region (South America, Africa)
Companies Covered: Major Companies profiled in the report which are key players in the global blockchain market are IBM, AWS, Microsoft, SAP, Intel, Oracle, Bitfury, Cegeka, Earthport, Guardtime, Digital Asset Holdings, Chain, Huawei, BlockCypher, Symbiont, BigchainDB, Applied Blockchain, Records Keeper, Blockpoint, Auxesis Group, BTL Group, Blockchain Foundry, AlphaPoint, and Factom.
Reasons to Buy This Report:
- Market size estimation of the global blockchain market on a regional and global basis.
- The unique research design for market size estimation and forecast.
- Profiling of major companies operating in the blockchain market with key developments.
- Broad scope to cover all the possible segments helping every stakeholder in the blockchain market.
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