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The global blockchain market was valued at USD 4.67 billion in 2021. The market is projected to grow from USD 7.18 billion in 2022 to USD 163.83 billion by 2029, exhibiting a CAGR of 56.3% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with blockchain experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 52.4% in 2020 compared to 2019.
In the scope of the study, we have considered technology platforms, solutions, and services offered by companies such as Wipro’s distributed ledger technology solutions, ecosystem services advisory, consulting services, platform services, and application services. It also includes Microsoft’s Azure service, Azure digital ledger workbench, and other related products and services.
Growing Reinvestment Strategies By Key Players Across Healthcare Sector Amid Pandemic Aid Growth
The COVID-19 pandemic caused the closure of most production facilities, which disrupted the entire economy and investment in digital technology. Also, the novel coronavirus had a significant impact on digital ledger technology during the pandemic. Key players in the market have invested significantly and reconstructed their digital strategies that are anticipated to surge the demand for digital ledger technology post-pandemic. Also, the pandemic has accelerated the adoption of digital technology from the government to retail. Every sector has shifted toward digitalization to continue business operations. The rising adoption of cloud and Internet of Things devices has raised security and privacy issues across all verticals. The technology offers identity protection, transparency in supply chain operations, and protects health records. Thus, the increasing adoption of digital technologies is expected to expand the market share. For instance,
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BaaS to Generate New Market Opportunities for Key Players in Market
The pandemic has generated an opportunity for cloud-based services by creating an innovative strategy for enterprises to give work-from-home access. The demand for cloud-based solutions to develop virtual work platforms has surged. As a result, there is an increasing demand for software across industries to ensure job continuity. BaaS is an ideal solution to the issues that small and medium-sized enterprises (SMEs) confront. SMEs employing cloud-based solutions are implementing distributed ledger-based services to safeguard digital entities and authenticate human identities, thereby increasing demand for BaaS products.
Rising Identity and Data Theft Activities to Surge Demand for Cryptographic Ledger Solutions
BFSI companies are adopting digital ledger technology to secure end-user’s financial data and identity. Technology applications, including cross-border transactions, clearing and settlements, trade finance platforms, digital identity verification, and credit reporting are gaining traction across the BFSI industry. This is expected to foster market growth. For instance-
Therefore, the rising awareness of data protection from malware activities within enterprises and consumers is one of the emerging drivers projected to drive the blockchain market growth.
Lack of Skilled Professionals to Hinder Market Growth
Rising digital transformation among industries has increased various threats and cyberattacks. However, organizations face a lack of skilled professionals to overcome the situation of risk factors. Therefore, the adoption of technologically advanced solutions is slow and is anticipated to impact the market growth for the next few years. Further, developing countries, such as India, Peru, Mexico, among others, are facing lack of awareness about the risks associated with data protection. Therefore, the adoption of the technology is likely to be stagnant for a few years.
Baas To Hold Largest Market Share during Forecast Period, Due to Rising Adoption of Cloud Applications
Based on component, the market is divided into blockchain-as-a-service and platform/solution.
Platform/solution allows digital ledger network and application developers to design customized distributed ledger (DLT) networks for end-users. Platform/solution is estimated to rise steadily due to increased demand in various industries for Hyperledger Fabric, Ethereum, R3 Corda, Ripple, and others.
BaaS is projected to increase at the fastest rate, owing to increasing enterprise usage of cloud-based services such as smart contracts, crowdfunding, crypto wallet development, and others.
Ability to Provide Reverse Transactions To Drive Exponential Growth of Public Solutions
Based on type, the market is subdivided into public, private, and consortium. Private solutions and services enable businesses to reverse transactions and change regulations at a lower transaction cost.
The consortium, also referred to as federated digital ledger, is beneficial where multiple businesses operate in the same industry and leverages a standard platform to streamline the operations. Consortium type offers collaborated platform to facilitate innovation across enterprises.
During the forecast period, the public segment is expected to grow at the fastest CAGR. The increase can be attributed to the growing focus of numerous institutions and governments on establishing efficient and open transactions.
Rising Enterprise Demand Is Expected To Drive Market Growth Of Proof Of Concept
Based on deployment, the market is categorized into a pilot, production, and proof of concept. Attributed to the increasing adoption of proof of concept for enhancing online transaction services in numerous sectors, the proof of concept is expected to hold the largest market share.
During the projected period, deployment by production is expected to have the highest CAGR. This is due to the increasing requirement for business process simplification and integrated supply chain management software.
Payment To Favor Growth Steadily Due To Increased Adoption Of Cloud Services
Based on application, the market is divided into payments, digital identity, supply chain management, smart contracts, and others. During the forecast period, the digital identity segment is expected to grow at the fastest CAGR. The rise is due to an increase in identity frauds and cyber-attacks occurring worldwide.
Digital ledger technology in supply chain management is likely to drive increased transparency to reduce frauds of costly goods such as pharmaceutical drugs and diamonds. The technology will help the companies to eliminate the impact of counterfeit products among end-users. As a result, supply chain management is anticipated to be a significant application in the market.
However, the payments segment is expected to have a larger market share. The rise is due to the increasing use of cloud services in payment and transaction procedures. The technology increases payment systems' transparency, cost-effectiveness, and operational efficiency.
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BFSI To Hold Largest Market Share Owing To Increasing Adoption Of Digital Ledger Solutions
Based on industry, the market is divided into BFSI, government, energy & utilities, manufacturing, healthcare and life sciences, travel and transportation, telecom, retail & consumer goods, media & entertainment, and others.
With increased adoption of digital ledger solutions and services by banks and other financial institutions to optimize company processes and decrease operational costs, the BFSI industry is expected to hold a large market share.
During the forecasted period, the retail & consumer goods industry is projected to exhibit the highest CAGR. Other industry verticals, including healthcare and life sciences, energy and utilities, government, manufacturing, travel and transportation, and telecommunications are expected to grow rapidly.
North America Blockchain Market Size, 2021 (USD Billion)
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Geographically, the market is fragmented into five major regions such as North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.
As per the global market statistics, North America dominated the market in 2020. The major share can be attributed to major players, such as IBM Corporation, Microsoft Corporation, Oracle Corporation, AWS, and Digital Asset Holdings LLC, in the United States. In addition, the North America market is highly diverse. As a result, market participants focus on extending their geographical presence by providing customized services to clients across the region.
Europe currently holds the marketplace at second place and is expected to grow steadily during the forecast period. Governments and private businesses in France, Germany, Italy, Spain, Luxembourg, the Netherlands, and other nations heavily invest in digital currencies. Businesses in the market are concentrating on growing their geographical footprint by providing customized digital ledger services to clients worldwide.
Asia Pacific is expected to grow with the highest compound annual growth rate during the forecast period. Manufacturing companies in China, Japan, Oceania, South Korea, and South East Asia are increasing their technology investments. Furthermore, these countries have a large number of digital ledger technology vendors.
Latin America is expected to witness steady growth during the period. The market is in a changing phase, owing to increased investment by the government and essential players in the oil & gas, energy and utilities, and transportation sectors.
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The Middle East & Africa market is in its early stages, owing to an increasing number of startups and domestic businesses investing in the development of digital currencies. Key players are focusing on developing advanced solutions for oil & gas, information technology, and transportation.
New Product Launch and Enhancement To Existing Products Using Digital Ledger Technology To Augment The Market
Key market players are working on building a wide variety of distributed ledger solution offerings to address the needs of customers and organizations. The introduction of innovative solutions helps players maintain their business expertise. In addition, the upgrading and growth of an existing product portfolio will improve a vendor’s market position.
Market players concentrate on advancing digital ledgers to address security issues that companies and small businesses confront. This also allows businesses to gain access to real-time information. For instance,
April 2021- Oracle Corporation launched Enterprise distributed ledger technology (DLT) technology for healthcare, financial services, supply chain, and other sectors to fight against COVID-19. The company has deployed various solutions, such as trusted collected and anchoring authoritative data, tamper-proof test result submission, and verifiable health credentials, to fight against COVID-19.
April 2021-R3, Trames and IMDA signed a memorandum of intent (MOI) to accelerate supply chain digitalization and global trade. The MOI will support the adoption of a digital solution built by Trames using R3’s platform and IMDA’s digital utility.
An Infographic Representation of Blockchain Market
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The global blockchain market research report highlights leading regions to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry and market trends and analyzes technologies deployed rapidly globally. It further highlights some of the growth-stimulating factors and restraints and competitive landscape helping the reader gain in-depth knowledge about the market.
Value (USD billion)
Component, Type, Deployment, Application, Industry, and Region
The market is projected to reach USD 104.19 billion by 2028.
In 2020, the market was valued at USD 3.06 billion.
The market is projected to grow at a CAGR of 55.8%.
The private blockchain type segment is likely to lead the market.
Rising identity and data theft activities Drives the market demand for digital ledger solutions
Accenture PLC, Amazon Web Services, Inc., Applied Blockchain Ltd., IBM Corporation, Intel Corporation, LeewayHeartz, Microsoft Corporation, Oracle Corporation, R3, and Tata Consultancy Services Limited.
North America region is expected to hold the highest market share.
Asia Pacific is expected to grow with the remarkable CAGR.
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