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The global cryptocurrency market size was valued at USD 826.6 million in 2020 and is projected to grow from USD 910.3 million in 2021 to USD 1,902.5 million in 2028, exhibiting a CAGR of 11.1% during the 2021-2028 period. Based on our analysis, the global market exhibited a significant growth of 10.0% in 2020 as compared to year-on-year growth during 2017-2019.
The global market size is inclusive of several cryptocurrency mining software such as Kryptex miner by Kryptex, Cudo Miner by Cudo Ventures, Nicehas Miner by NICEHASH Ltd., among others and mining hardware such as Antminer S19, WhatsMiner M30S+, AvalonMiner 1246, among others. The global impact of COVID-19 has been unprecedented and staggering, with cryptocurrencies witnessing a positive demand shock across all regions amid the pandemic. The steady rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
The primary factor driving the market's growth is the growth of distributed ledger technology and rising digital investments in venture capital. Developing countries have started using digital currency as a financial exchange medium. The increasing popularity of digital assets like Bitcoin and Litecoin is likely to drive market growth in the forthcoming years. Moreover, digital currency is also often utilized with the integration of blockchain technology to attain decentralization and controlled efficient transactions. Blockchain technology offers decentralized, fast, transparent, secure, and reliable transactions. With these advantages of blockchain and digital currency, companies are investing in cryptocurrency and collaborating with other companies to deliver efficient and quality services to the users. For instance,
In October 2018, Qtum Chain Foundation, based in Singapore, partnered with Amazon Web Services (AWS) China to deploy blockchain systems on the AWS cloud. This collaboration was aimed to help AWS users to use Amazon Machine Images (AMI) to develop and publish smart contracts easily and efficiently.
Such initiatives by market players are expected to contribute to the growth of the market.
An Infographic Representation of Cryptocurrency Market
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The Spread of COVID-19 Had Mixed Impact on Global Market
With the spread of the global Coronavirus pandemic (COVID-19), the relationship between Bitcoin and the equity market has expanded. For example, following a severe drop in the S&P Index in the U.S. on March 12, 2020, the price of Bitcoin plummeted below USD 4,000. Due to the collapse of the initial coin offering (ICO) market, blockchain firms are now largely attempting to obtain investment funding. To alleviate the economic consequences of the COVID-19 pandemic, large blockchain enterprises such as Elliptic, Chainalysis, and CipherTrace have indicated that they have cut their workforce or budgets. Elliptic, for example, has laid off 30% of its staff in the United States and UK; CipherTrace has reduced advertising and marketing department roles, and Chainalysis has announced plans to slash employee pay by 10%.
The constraints and economic problems induced by coronavirus have left several token sales without investment while causing others to delay their production. The recent research study by ICOBench in 2020 reveals that the contributions made by the companies during the last week of January to the first week of February were significantly smaller in the same timeframe compared to last year. Moreover, the virus spread has forced crypto companies to implement work from home strategy and has delayed many business partnerships.
Although the long-term impact of COVID-19 on economies cannot be predicted, considering the cultures and individuals’ well-being, it seems a reasonable bet that the reaction of central banks would build an ideal atmosphere for the market to sustain. If Bitcoin continues to outperform conventional markets, it may certainly spark further interest in crypto as an alternate and sustainable form of currency.
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Growing Adoption of Digital Currencies will have Profound Impact on the Market
The popularity of virtual or digital currency such as Bitcoins, Litecoins, Ethers, and many more are expected to drive the market in the forthcoming years. People from developed countries are likely to adopt the easy and flexible transactional method offered by digital currency. This popularity of virtual currency as an exchanging medium led the central bank to support digital currency. The central bank patented Central Bank Digital Currency (CBDC) activity provisions for the digital currency projects across many developed countries. For instance, the Bank of Thailand and Central Bank of Uruguay are applying the toolkit to its CBDC evaluation process; the Eastern Caribbean Central Bank and People’s Bank of China also support CBDC for adopting digital cash as an exchange medium. Several companies, such as Facebook, Inc., are expanding their business by offering digital money. For instance, in June 2019, Facebook, Inc. launched a digital currency named Libra. Libra will enable customers to buy things or send money to others and cash out Libra online or at grocery shops. Additionally, companies can benefit from fluctuating digital currency prices and strengthen their digital assets.
Focus on Mitigating Financial Crisis, and Regional Instability Drives the Virtual Currency’s Demand
Financial disaster is a major issue occurring in traditional banking and the financial sector. Financial uncertainty disturbs the economy by dropping the value of the currency. For instance, India’s ICICI bank had majorly confronted the Lehman brother crisis in 2008, which affected the nation’s economy. With Bitcoins or other cryptocurrencies, there is no major effect of the financial crisis on it as its value is balanced universally. Cryptocurrencies are better options in financial uncertainty for the regions with unstable economical structures, which is becoming a major market driving factor for the market.
Increasing Adoption of Bitcoin to Witness Exponential Demand for Cryptocurrency Market
Bitcoin is one of the most popular and majorly adopted digital cash across the world. The rising visibility, growing interest of investors, and supporting regulations are further augmenting the market's growth. Maturing bitcoin cash value and the facility to offer rewards for transactions are also upsurging digital cash’s market value. Developing countries like Japan, the U.S., European countries, and many more indicate people's inclination towards digital currency, which is expected to facilitate the cryptocurrency market growth in upcoming years.
Misuse of Virtual Currency and Security Attacks Confines the Adoption of Cryptocurrencies
As virtual currencies are an unauthorized, decentralized, and uncontrollable exchanging platform, many regulators are worried about the increasing misuse of these currencies by criminals for illegal activities. It has been seen that many unlawful activities like tax evasion, money laundering, and terrorist financing have been carried out by criminals using digital money. In July 2019, Treasury Secretary Steven Mnuchin shared their concerns about the misuse of Facebook, Inc.'s patented Libra digital currency by terrorist financiers and money launderers. Moreover, growing security concerns and cyber-attacks have led to the loss of the invested currencies, limiting the adoption of cryptocurrencies. For instance, In February 2020, digital currency exchange platforms of Okex.Com and Bitfinex companies were disrupted with Denial of Service attacks. Such security concerns and misuse of digital currencies become a major restraining factor for the industry’s growth.
Criminals and terrorists are more inclined to deal in cash and keep cash as collateral than to use financial intermediaries such as banks and avoid anti-money laundering reporting and compliance regulations. Businesses and governments became worried that the pseudonymous and decentralized nature of digital currency transfers might offer a way for criminals to conceal their financial activities from the authorities. For instance, Bitcoin was used on the web-based, illegal drug market called Silk Road. This exchange and Bitcoin escrow program allowed more than 100,000 illegal product transactions from about January 2011 until October 2013, when the government shut down the company and detained persons operating the platform.
Criminal usage of virtual currencies would not automatically mean that blockchain is a net negative for the community since its advantages may outweigh the social expense of increased criminality enabled by virtual currency. Law enforcement agencies have the potential to minimize the usage of digital currencies to prevent law enforcement. In addition to the ability of law enforcement to prosecute violence, the government has the right to restrict digital currency exchanges to legislation relating to the monitoring of criminal behavior.
Hardware Segment to Capture Largest Market Share
Based on components, the global market has been segmented into software and hardware.
The hardware segment is further classified based on platform types as Graphical Processing Unit (GPU), Field Programmable Gate Array (FPGA), Application Specific Integrated Circuit (ASIC), and others. The hardware segment comprises hardware implemented for crypto mining and exchange such as Bitmain Antminer S9i, Halong Mining DragonMint T1, Pangolin Whatsminer M3X, Avalon6, among others. ASIC mining hardware is expected to hold the largest share mainly due to its high performance and high hash rate while mining a specific coin.
The software segment is further categorized into mining software, exchange software, payment, wallet, and others. Examples of crypto software include BeMine, ECOS, Shamining, CCG Mining, etc. Exchange software uses a trading engine that is a single interface for connecting offers and exchanges with digital currency derivatives. The platform is used to match, sell and buy from users, thereby holding the largest share in the market. Significant dispersion of exchange platforms is likely to drive the market globally. Whereas, wallets can be hardware or software wallets. Software wallets or digital wallets are seen to be adopted majorly due to their security enhancement. Depending on the user's control over the private key protection function, digital wallets are categorized again as a self-hosted or custodial wallet.
Adoption of Bitcoin to Account for Maximum Share
Based on type, the market is segmented into Bitcoin (BTC), Litecoin, Ether, Ripple, Ether Classic, and others.
Among these, Bitcoin is a highly adopted digital currency in the market. According to a report published by Deutsche Bank AG in 2017, bitcoin is one of the most used digital currencies, and it will maintain its dominance over the coming years. Ether, a virtual currency that can be used for accounting, investing, and establishing smart contracts and decentralized applications, is another popular virtual currency on the market. In the market, Ether is projected to expand at a modest rate.
Similarly, Ripple is used to verify debentures. The network established with ripple generates creditor-debtor relations and account balances accessible for each user within the network. The technical implementation of Litecoin is the same as Bitcoin, while it has the advantage that it is four times faster than bitcoin, which is projected to lead the market in upcoming years. Other cryptocurrencies such as Dogecoin, Moneor, and Dash also make a considerable contribution to market growth.
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Cryptocurrencies are Expected to be Adopted Majorly for Remittances Resulting in Flourishing CAGR
Based on end-use, the market is segmented into trading, e-commerce and retail, peer-to-peer payment, and remittance.
Trading captured the largest market share. The segment focuses on crypto solutions that are used for trading, such as Pionex, Cryptohopper, Bitsgap, Coinrule, and others. E-commerce and retail companies have started accepting cryptocurrencies as a payment option. For instance, in September 2019, The German branch of chain Burger King restaurant accepted bitcoin as payment for its online deliveries and orders.
The penetration of virtual currencies in digital payment is expected to affect cross-border remittances. The financial institution is directing towards blockchain technology which is expected to drive the market in upcoming years.
North America Cryptocurrency Market, 2020 (USD Million)
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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 captured the largest share in the global market in 2020, as most of the region treated bitcoins as a medium of exchange for tax purposes rather than currency. Although the government does not legally regulate the fact, many developed countries still focus on using digital money. Acceptance of digital cash by consumers as well as retailers drives the growth of the market. Additionally, the popularity of bitcoin mining and the presence of a majority of key players dominate the market in North America.
Besides, several technological developments and acceptance of virtual currency for some platforms in Japan and Taiwan are expected to majorly boom the market in the Asia Pacific. Strategic collaborations, partnerships by key players also contribute to the market in the Asia Pacific. For instance, in January 2020, Z Corporation, Inc. and TaoTao, Inc. announced a collaboration with the financial service agency to expand the crypto market by confirming regulatory compliance in the Japanese market. Japan recently had accepted a new digital currency exchange during the COVID-19 outbreak. Similarly, Malaysia’s Securities Commission legally has authorized digital currency exchange operators to operate in the country despite the national lockdown due to the coronavirus pandemic. It can be expected that the effect of the COVID-19 outbreak may offer some opportunities for this market to grow in certain economies.
Many countries of Europe and the Middle East, and Africa (MEA) are also showcasing approaches towards adopting cryptocurrencies. Europe and MEA are also projected to see a large growth rate followed by the Asia Pacific in the forecasting period.
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The UAE and Dubai are at the forefront of blockchain development in the Middle East, while Bahrain and Saudi Arabia have recently taken measures towards the acceptance of digital cash. The UAE is introducing open ledger solutions. At the end of 2017, the central bank of the UAE declared that it would collaborate with its counterpart in Saudi Arabia, the Saudi Arabian Monetary Authority (SAMA), to create a digital currency that could be used by both institutions and some commercial banks for fast and secure settlements. Financial services firms in the region are among those who may profit greatly from the introduction of blockchain technologies in fields such as payments, supply chain, finance, and trading, as well as monitoring, compliance, and operations.
Key Players to Focus on Product Offerings and Launch Crypto Mining Solutions
Companies operating in the market such as Bitmain Technologies Ltd., Xilinx, Inc., Intel Corporation, Advanced Micro Devices, Inc., Ripple Labs, Inc., Bitfury Group Limited., Ledger SAS, Nvidia Corporation, BitGo, Xapo, among others are focused on developing and offering different types of mining hardware and software solutions. Also, the high competition in the market is forcing companies to focus on different strategic initiatives to strengthen their market positions.
This market report provides an in-depth analysis of the market. It focuses on key aspects such as leading companies, product Industry, and leading mining software and hardware solutions. Besides this, the report offers insights into the cryptocurrency market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several key factors contributing to the market's growth over recent years.
2017 – 2028
2021 – 2028
2017 – 2019
Value (USD million)
By Component; Type; End-Use; and Region
According to Fortune Business Insights, the global market is expected to reach USD 1,902.5 million by 2028.
Fortune Business Insights says that the market stood at USD 826.6 million in 2020.
The market is expected to grow at a CAGR of 11.1% during the forecast period (2021-2028).
Based on component, the hardware is expected to lead the market.
The increasing adoption of bitcoin is one of the key drivers for market growth.
Bitmain Technologies Ltd., Xilinx, Inc., Intel Corporation, Advanced Micro Devices, Inc., Ripple Labs, Inc., Bitfury Group Limited., Ledger SAS, Nvidia Corporation, BitGo, Xapo are some of the top companies in the market.
The trading holds the major market share.
Below is the list of companies that are studied in order to estimate the market size and/or understanding the market ecosystem
This list does not necessarily mean that all the below companies are profiled in the report. The report includes profiles of only the top 10 players based on revenue/market share.
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