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The global blockchain market size was USD 3.06 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with the market witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth of 52.4% in 2020 compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 4.68 billion in 2021 to USD 104.19 billion in 2028 at a CAGR of 55.8% in the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
In the scope of the study, we have considered technology platform, solutions and services offered by companies such as IBM Blockchain solutions, Wipro’s Blockchain ecosystem services, advisory and consulting services, platform services, and application services, and Microsoft’s Azure service, Azure Blockchain Workbench and other related products and services.
Healthcare Industry to drive the Demand for Digital Ledger Solutions Amid COVID-19
The COVID-19 pandemic caused the closure of most production facilities, which has disrupted the entire economy and investment in digital technology. However, the novel coronavirus acted as an accelerator for digital ledger solutions. Owing to pandemic, from government to retail, every sector has shifted towards 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 likely to expand the market share. For instance,
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Blockchain-as-a-service (B-a-a-S) to generate new market opportunities
The pandemic has generated an opportunity for cloud-based services by creating a new 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 as a service across industries to ensure job continuity. B-a-a-S is an ideal solution to the issues that small and medium-sized enterprises (SMEs) confront (SMEs). SME's employing cloud-based solutions are implementing distributed ledger based services to safeguard digital entities and authenticate human identities, increasing demand for B-a-a-S products.
Rising Identity and Data Theft Activities to Drive the Demand for Cryptographic Ledger Solutions
BFSI and IT companies are adopting digital ledger technology to secure the financial data and identity of their customer. The technology applications include 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 the market growth. For Instance-
Therefore, the rising awareness of data protection from malware activities within the enterprises and the consumers is one of the emerging drivers which is projected to drive the market growth.
Lack of skilled professionals to Hinder the market growth
Rising digital transformation among industries has increased various threats and cyberattacks. However, organizations are facing 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's growth for the next few years. Further, developing countries such as India, Peru, Mexico, among others, are facing a lack of awareness about the risk associated with data protection. Therefore, adoption of the technology is likely to be stagnant for few years.
Blockchain-as-a-service (B-a-a-S) to Hold Largest Market Share During the Forecast Period
Based on the component, the market is divided into two segments which are blockchain-as-a-service and platform/solution.
The platform/solution allows digital ledger network and application developers to design customized distributed ledger (DLT) networks for end-users. The platform/solutions are estimated to rise steadily because of increased demand in various industries for platforms such as Hyperledger Fabric, Ethereum, R3 Corda, Ripple, and others.
B-a-a-S 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 Blockchain
Based on the type, the market is subdivided into public, private, and consortium. The private category is expected to have the largest market share due to its ability to limit participation for transactions and consensus processes. Private solutions and services enable businesses to reverse transactions and change regulations at a lower transaction cost.
Consortium also referred as federated digital ledger is beneficial where multiple businesses operate in the same industry and leverage a standard platform to streamline the operations. Consortium type offers collaborated platform to facilitate innovation across the large enterprises.
During the forecast period, the public type 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 the Proof of Concept
Based on deployment the market is categorized into pilot, production, and proof of concept. Owing 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 the application, the market is bifurcated into payments, digital identity, supply chain management, smart contracts, and others. During the forecast period, the digital identity application is expected to grow at the fastest CAGR. The rise is due to an increase in the number of 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 the end-users. As a result, supply chain management is anticipated to be a significant application in the market.
However, the payment application is expected to have a larger blockchain market share. The rise is due to the increasing use of cloud services in payment and transaction procedures. The technology increases the transparency, cost-effectiveness, and operational efficiency of payment systems.
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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 the increased adoption of digital ledger solutions and services by banks and other financial services 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, 2020 (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 blockchain technology market statistics, North America is expected to dominate the market share in 2020. The major share can be attributed to the presence of major players such as IBM Corporation, Microsoft Corporation, Oracle Corporation, AWS, Digital Asset Holdings, and others in United States. In addition, the North American market is highly diverse. As a result, market participants are focusing 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 forecasted period. Governments and private businesses in France, Germany, Italy, Spain, Luxembourg, the Netherlands, and other nations are heavily investing in the digital currencies. Businesses in the market are concentrating on growing their geographical footprint by providing customized digital ledger services to clients from all over the world.
Asia Pacific is expected to grow with the highest CAGR during the forecast period. Manufacturing companies in China, Japan, Oceania, South Korea and South East Asia, are increasing their investments in the technology. Furthermore, these countries have a large number of digital ledger technology vendors.
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Latin America is expected to witness steady growth during the period. The market is believed to be in a changing phase, owing to increased investment by the government and essential players in the oil and gas, energy and utilities, and transportation sectors. Similarly, 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 industries such as oil and gas, information technology, and transportation.
New Product Launch and Enhancement to the 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.
Major market players are concentrating on advancing digital ledger to address security issues that companies and small businesses confront. This also allows businesses to gain access to real-time information, which improves productivity and builds trust. For instance,
October 2018- Oracle Corporation launched the Oracle blockchain application cloud. This launch will help customers increase trust and provide agility in transactions across end user’s business. In addition, the new suite uses SaaS that enhances transparency and traceability throughout the supply chain.
May 2021- Amazon Web Services launched Ethereum on Amazon-managed blockchain. It will help developers easily discover Ethereum nodes without facing the complexity of operating and setting up the infrastructure.
LIST OF KEY COMPANIES PROFILED:
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The market research report highlights leading regions across the world 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 at the global level. 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; 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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