Market Definition
Blockchain, also known as DLT (Distributed Ledger Technology), allows for different types of digital information to be stored & distributed but not deleted or edited. Initially, it was related only to cryptocurrencies but has acquired extensive popularity in several other applications over the past few years. Globally, numerous businesses & government authorities are increasingly adopting blockchain technology to make their daily operations more efficient, accurate, secure, & economical, which projects a pool of lucrative prospects for the blockchain industry in the coming years.
Market Insights
The Global Blockchain Market is rapidly expanding and expects a whopping 73.1% CAGR during the forecast period, i.e., 2022-27. The most prominent factors contributing to the market growth are the ever-increasing need for operational efficiency, especially in banks & other financial institutes, coupled with substantial investments in blockchain technology with the rising legalization of cryptocurrency. The consistently increasing venture-capital funding for blockchain start-up companies is notably contributing to the expansion of the global blockchain market.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 73.1% |
| Regions Covered | North America: The US, Canada, Mexico |
| Europe: Germany, The UK, France, Spain, Switzerland, Others | |
| Asia-Pacific: China, India, Australia, Japan, South Korea, Singapore, Others | |
| South America: Brazil, Others | |
| Middle East & Africa: UAE, Saudi Arabia, South Africa, Israel, Others | |
| Key Companies Profiled |
IBM, AWS, Microsoft, SAP, Intel, Oracle, NTT Data, Earthport, Amazon Web Services, Consensus Systems, Huawei, Monax, Ripple, BTL Group, R3 |
| Unit Denominations | USD Million/Billion |
Moreover, benefits like data accuracy, consistency, & transparency are further propelling the demand for blockchain technology and fueling the overall market growth. With these benefits, several government authorities and small & medium enterprises, among others, are displaying immense interest in utilizing this technology to enhance their workflows.
An emerging blockchain-based Fintech, DeFi (Decentralized Finance), is a blanket term for numerous financial applications in cryptocurrency and aims to reduce the power banks hold on public finances. The increasing strategic initiatives in the DeFi ecosystem are promoting the growth of the blockchain market on the global level.
Furthermore, with the advent of Covid-19 in 2020, various cafes, bars, & restaurants, among others, have started offering their customers cryptocurrency-based payment options in order to enhance their overall experience. Hence, the growing acceptance of cryptocurrency-based payments among several companies would generate profitable opportunities for the Global Blockchain Market through 2027.
Market Segmentation
Based on End-Users:
Here, the BFSI (Banking, Financial Services, & Insurance) sector is the largest end-user in the Global Blockchain Market, mainly due to its growing focus on minimizing frauds by eliminating the middlemen of finances. Blockchain technology is highly effective in removing vulnerability to cyber-attacks, breaches, & theft, which makes it a preferred choice for several banks & financial institutes to facilitate secure transactions. Besides, quicker transactions, improved traceability, & low operational costs are other noteworthy benefits associated with blockchain technology that led to the largest share of the BFSI sector in the global market.
On the other hand, the healthcare sector is another significant contributor to the overall growth of the Global Blockchain Market. It owes to the rapidly surging deployment of blockchain technology in hospitals & clinics due to stringent norms imposed by governments of different countries for protecting patient data, on account of rising instances of insurance fraud worldwide.
Based on Application:
Amongst all applications, payments hold the biggest share in the Global Blockchain Market, and the same trend is expected during the forecast period, i.e., 2022-27. It attributes primarily to the increasing market value of cryptocurrencies, declining transaction costs, and the mounting utilization of cloud services in payments & transactions. Blockchain technology helps automate payments and enable low-cost cross-border transactions & settlements.
Consumers & businesses worldwide transmit substantial amounts of money, which, in the past, has remained relatively expensive using bank transfers & currency conversions. However, with the BFSI sector as the largest end-user of blockchain technologies, it allows for low-cost international money transfers, better remittances, and reduced vulnerability to cryptocurrencies.
As a result, most financial companies are increasingly deploying blockchain technology to enhance their payment systems' transparency, cost-effectiveness, & operational efficiency, avoid data loss & frauds, and eliminate the need for intermediaries in payment processing. Hence, these aspects indicate payments as the largest application of blockchain technologies, thereby driving the global market.
Regional Landscape
Geographically, the Global Blockchain Market expands across:
Amongst all regions, North America dominates the Blockchain Market globally. The well-established & massive IT sector across countries like the US & Canada, coupled with substantial R&D investments in open-source distributed ledger technology to attain quick transactions & data transparency, are the prime aspects driving the regional market.
Major countries across the region are early adopters of advanced technologies and host the leading blockchain solution providers. In order to ensure business continuity, most organizations across the region are increasingly deploying security & vulnerability management solutions for enhanced data security & preventing cyberattacks.
Besides, the increasing consumer inclination toward using cryptocurrencies, coupled with the growing implementation of payment solutions, smart contracts, and digital identity solutions by BFSI, retail, & government sectors, among others, are generating immense demand for blockchain technologies across North America, and thus fueling the overall market growth.
Market Dynamics
Key Driver: Massive Venture Capital Investments due to Rapidly Rising Market Value of Cryptocurrencies
Cryptocurrencies incur lower transaction fees than other payment methods, as they are based on blockchain technology. As a result, many individuals & businesses are increasingly adopting the technology for cross-border payments & remittances since the latter involves high transaction costs. Moreover, since cryptocurrencies are immutable, regulatory authorities cannot impose any restrictions on cross-border transactions. All these aspects have resulted in a significant surge in the market value of cryptocurrencies, i.e., attracting massive venture capital funding in blockchain startups, which projects lucrative prospects for the Global Blockchain Market during 2022-27.
Growth Restraint: Lack of Consumer Awareness about the Significance of Blockchain Technology
The primary growth restraint to the Global Blockchain Market during 2022-27 is less awareness of the significance & benefits of blockchain technology, especially across sectors other than BFSI, coupled with the lack of knowledge among people about its implementation. It, in turn, is restricting its scalability and R&D investments associated with it. Besides, uncertain regulations, security & privacy concerns with blockchain transactions, and high energy consumption during crypto mining are a few other aspects restricting the adoption of blockchain technology among organizations, which could hinder the growth of the global market in the years to come.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Blockchain Market is projected to grow at a CAGR of around 73.1% during 2022-27.
A. The burgeoning need for enhanced operational efficiency in various sectors, especially the BFSI industry, coupled with the massive investments in blockchain technology owing to the cryptocurrency legalization across several countries worldwide, are the prime aspects projected to drive the Global Blockchain Market through 2027. However, the uncertain regulations, increasing security concerns over the rising prevalence of data thefts, and the lack of a skilled workforce to implement the blockchain technology might hinder the market growth in the years to come.
A. The healthcare sector is anticipated to emerge as an area of remunerative opportunities for the leading players in the Global Blockchain Market over the forecast years.
