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The global blockchain market size was USD 2.01 billion in 2019 and is projected to reach USD 69.04 billion by 2027, exhibiting a CAGR of 56.1% during the forecast period.
Blockchain is one of the technological trends in the ICT sector. The rising focus on the decentralization of data ledgers has led to the proliferation of blockchain. The market growth is attributed to the increasing demand for advanced platforms and solutions across industries such as BFSI, retail sector, and others, to develop personalized products and services.
Also, the increasing investments in various blockchain technology-based projects by countries such as Japan, the U.K., the U.S., and others are expected to drive the growth of the market. For instance, in 2019, the government of the Republic of Korea invested around USD 9.0 million to expand its blockchain technology across the public sector.
Implementation of Blockchain Solutions for Early Detection of COVID-19 to Spur Growth
The current COVID-19 pandemic is challenging the blockchain market in the short term. Blockchain can play a crucial role in accelerating digital transformation activities and initiatives amid this crisis. The technology can be used for public health data surveillance, crisis management, donation tracking, securing medical supply chains, and others. According to the Organization for Economic Co-operation and Development (OECD), the market will see a slight slowdown, with a decrease in technology spending by around 8% in 2020, as compared to the previous year. Governments and other corporate organizations are focusing on deploying innovative solutions to improve customer experience.
Such active initiatives are expected to drive the demand for blockchain solutions in the coming years.
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Rising Demand for Blockchain-as-a-service (BaaS) is a Current Trend
The increasing demand for cloud-based services among organizations is expected to be one of the key trends for the market. Blockchain-as-a-service (BaaS) helps organizations to adopt applications such as security management systems, and enterprise resource management systems, among others. The BaaS service allows customers to utilize, host, and develop their smart contracts, functions, and applications. To cater to the increasing demand for BaaS services, market players are focused on developing BaaS tools and services, by completing mergers & acquisitions and partnerships.
Increasing Adoption of DLT System based on Advanced Analytics to Aid Growth
One of the emerging drivers for the blockchain market is the increasing adoption of the distributed ledger technology (DLT) system based on advanced data analytics. DLT is a decentralized system that is used to record transactions with secured mechanisms and advanced data analytics. Services based on the DLT system help to trade and monitor via digital currency. Key players across various countries including Germany, the U.S., and others are collaborating to develop advanced services based on DLT.
With a rise in the adoption of DLT systems and research services, the market is expected to grow in the near future.
High Costs Involved at Initial Stage Proving to be an Inhibiting Factor for Growth
The blockchain technology market is growing at a rapid pace owing to its multi-tasking abilities across various applications. High venture capital funds and huge investments are required to set up specialized infrastructure and architecture. However, the setting up process and operability are much more complex and require experienced resources. This process also consumes a huge amount of bandwidth, energy, data centers, network components, cooling system, and others. Since blockchain technology is in its emerging stage, there are very limited startups and enterprises providing this. However, uncertain regulatory and government standards and the lack of funds and investment might hinder their usage.
Blockchain-as-a-service Segment to Dominate During the Forecast Period
Based on the component, the blockchain market has been bifurcated into platform/solution and blockchain-as-a-service. Among these, the platform/solution segment is estimated to show steady growth owing to the rising demand for platforms such as Ethereum, Hyperledger Fabric, Ripple, R3 Corda, and others in various industries. The platform or solution allows application and blockchain network developers to develop customized distributed ledger (DLT) networks for end-users.
The service segment is expected to exhibit the highest growth rate due to the rising adoption of cloud-based services such as crypto wallet development, crowdfunding, smart contract, and others among enterprises.
Public Blockchain Segment to Grow Exponentially Stoked by Ability to Provide Reverse Transactions
Based on the type, the market is further segregated into public blockchain, private blockchain, and consortium blockchain. Among these, the private blockchain segment is anticipated to exhibit the highest market share, as it can restrict the participants for transactions and consensus processes. Private solutions and services allow enterprises to reverse transactions and modify rules at comparatively cheaper transaction rates.
The public blockchain segment is anticipated to exhibit the highest CAGR during the forecast period. The growth is attributable to the rising focus of various institutions and governments on inculcating efficient and open transactions.
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Rising Demand from Enterprises to Drive Growth of the Proof of Concept Segment
Based on deployment, the market is fragmented into proof of concept, pilot, and production. The proof of concept segment is likely to hold maximum market share owing to the increasing adoption of proof of concept for optimizing online transaction facilities in various industries.
The production segment is anticipated to exhibit the highest CAGR during the forecast period. This is attributable to the growing need for simplifying business processes and the need for integrated supply chain management applications.
Payment Segment to Grow Steadily Owing to Higher Adoption of Cloud Services
Based on the application, the blockchain market is divided into digital identity, payments, smart contracts, supply chain management, and others.
The digital identity segment is projected to grow at the highest CAGR during the forecast period. The growth is attributable to the rising number of identity frauds and cyber-attacks happening across the globe.
The payment segment is expected to hold a higher market share during the forecast period. The growth is owing to the rising adoption of cloud services in payment and transaction procedures. The technology provides cost-effectiveness, transparency, and improves the operational efficiency of payment systems.
Rapid Adoption of Blockchain Solutions to Favor Growth of BFSI Segment
Based on industry, the market is divided into BFSI, energy & utilities, government, healthcare and life sciences, manufacturing, telecom, media & entertainment, retail & consumer goods, travel and transportation, and others.
The BFSI segment is expected to hold a higher market share owing to the increasing adoption of blockchain solutions and services among banks and other financial institutes to reduce the operational cost and streamline business operations.
The retail & consumer goods segment is expected to showcase the maximum CAGR during the forecast period. Other segments such as energy & utilities, government, healthcare and life sciences, manufacturing, telecom, media & entertainment, and travel and transportation are expected to grow at a substantial CAGR. The growth of these segments is mainly owing to the rising adoption of cloud computing and blockchain software among enterprises.
North America Blockchain Market, 2019 (USD Billion)
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Geographically, the market is segmented across five major regions, namely, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.
North America is expected to dominate in terms of revenue in the global blockchain market during the forecast period. The growth is attributable to the early adoption of core technologies and the presence of major market players such as Microsoft Corporation, IBM Corporation, and others. In addition, the rising digitalization and increasing adoption of cryptocurrencies is expected to propel the market in the U.S. and Canada. The government in North America is focused on investing in solutions for using them in public sectors such as banks, defense & military, airports, and others.
Asia Pacific is expected to grow with the highest CAGR during the forecast period. The growth is attributable to the rising investment by governments and corporate organizations in blockchain technology-based projects. Major players are focusing on the collaboration strategy to enhance their product portfolios and market presence.
Europe is expected to develop with a substantial CAGR during the forecast period. The growth is attributable to the presence of a considerable number of solution providers in countries such as Germany, the U.K., France, and others. For instance, in January 2018, companies in the U.K. invested around USD 132.2 million (£ 99 million) for the development of innovative products and services based on blockchain technology.
The Middle East & Africa and Latin America are expected to exhibit a significant CAGR during the forecast period. This growth is attributable to the increasing government initiatives for investing in the development of blockchain services for oil and non-oil industries.
Emphasis of Major Players on Developing Innovative Blockchain Solutions to Strengthen Competition
Major players such as IBM Corporation, Microsoft Corporation, Oracle Corporation, and Tata Consultancy Services Limited (TCS), among others are strengthening their blockchain technology market positions by upgrading their existing product lines. In addition, key players are integrating solutions with advanced technologies such as AI, ML, cloud, and others to enhance the products and deliver state-of-the-art solutions. These key market players are currently focusing on investing in the development of various blockchain services projects across the globe.
An Infographic Representation of Blockchain Market
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The blockchain technology market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.
2016 – 2027
2020 – 2027
2016 – 2018
Value (USD billion)
Fortune Business Insights says that the market value stood at USD 2.01 billion in 2019.
By 2027, the market size is expected to reach USD 69.04 billion
The market is expected to grow at a CAGR of 56.1% in the forecast period (2020-2027).
Within component, the blockchain as a service segment is expected to lead the market during the forecast period
The rising adoption of distributed ledger technology (DLT) based on advanced analytics is one of the key drivers for market growth
IBM Corporation, R3TEK, Oracle Corporation, Ripple, Microsoft Corporation, and SAP SE, and others are the top companies in the market.
Based on application, the payments segment holds the major market share
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