Blockchain Market

[447 Pages Report] The global blockchain market size is projected to grow from USD 20.1 billion in 2024 to USD 248.9 billion by 2029 at a Compound Annual Growth Rate (CAGR) of 65.5% during the forecast period. Increasing venture capital funding and investments in blockchain technology are driving significant growth in the blockchain market.

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Blockchain Market Growth Dynamics

Driver: High adoption of blockchain solutions for payments, smart contracts, and digital identities

Blockchain technology has significant potential in application areas such as payments, smart contracts, and digital identities. Blockchain technology can connect payers and payees across borders or domestically without intermediaries at ultra-low fees and instant speed. Abra, a startup, uses blockchain technology for global Bitcoin and blockchain-based money transfers. A smart contract is another key application area, which is the central component of next-generation blockchain platforms. Ethereum, a public blockchain platform, is currently one of the most advanced smart contract-enabled blockchain. Blockchain is expected to provide the highest benefits when combined with smart contract technology. Thus, various organizations are exploring undergoing smart contracts along with organic and inorganic strategies. For example, in September 2022, the Popular Layer-1 smart contract blockchain platform, VeChain and Electi, partnered to work together to enhance VeChain’s smart contract capabilities.

Restraint: High cost of implementing blockchain technology

The underlying cost of implementing blockchain technology is significant. Most blockchain solutions, including Hyperledger, are open-source. However, they require significant investments from organizations willing to adopt them. There are costs associated with hiring developers, managing a team that excels at blockchain experts, licensing costs if a business opts for a paid blockchain solution, etc. For enterprise blockchain projects, the cost can reach over a million dollars as well. Consequently, businesses that do not have sufficient funds or budgets to implement blockchain might require to wait.

Opportunity: Increasing government initiatives to boost demand for blockchain platforms and services

Blockchain technology has caught the interest of several stakeholders from a variety of verticals in the past few years. Because of the growing interest in this technology, a number of government agencies are funding research projects to develop blockchain solutions; daily, the government sector sees a number of transactions and information exchanges. Government organizations from all around the world have begun implementing blockchain technology to increase operational efficiency and transparency while also improving the general public service delivery experience. Blockchain technology makes it possible to record transactions on distributed ledgers, which presents a number of potential uses for governmental organizations looking to boost operational efficiency, reduce fraud, and increase transparency. The Estonian government is one of the early adopters of blockchain technology in the European region.

Challenge: Limited availability of technical skillsets to implement blockchain technology

Introducing any new technology in an existing market is always considered risky. According to a study, 80% of the time, blockchain technology is used for completely changing the existing business processes in enterprises, whereas the remaining 20% is utilized for technological implementation. Undoubtedly, blockchain technology is currently one of the hottest and most intriguing technologies in the market, but end users are still facing some challenges in understanding the technicalities of the blockchain concept.

Since blockchain technology uses cryptographic algorithms that run across a vast network of devices, it is important to have technical knowledge about the related techniques to leverage the benefits of blockchain technology. The implementation and management of a blockchain project are tedious. Businesses need to hire multiple experts in the blockchain field, train their existing professionals on how to use blockchain, and ensure that the management teams can understand the complexities and outcomes of a blockchain-powered business.

Blockchain Market Ecosystem

By vertical, Retail & eCommerce is expected to grow at the highest CAGR during the forecast period.

The global network of suppliers, retailers, eCommerce portals, and consumers engaging through physical storefronts and digital online platforms is known as the retail and eCommerce sector. Every retail and e-commerce company is investing heavily to give customers a better shopping experience. The consumer experience is becoming increasingly better thanks to blockchain technology. Retail and eCommerce companies hope to gain client loyalty by providing a great customer experience.

Customers can obtain information about their purchases more easily and accrue loyalty or reward points thanks to the information kept on the blockchain digital ledger. Customers receive immediate assistance without any service delays in the event of a product breakdown. Furthermore, rather of having to buy products to process payments, blockchain enables shops to access and accept cryptocurrency. It facilitates secure, authorized internet transfers. When using blockchain technology, the payment procedure is less expensive than using a credit card.

By deployment mode, cloud segment is expected to grow at the highest CAGR during the forecast period.

The market for cloud blockchain is expanding quickly due to the growing need for blockchain solutions that are affordable, flexible, and scalable. Businesses may swiftly implement blockchain apps by utilizing cloud infrastructure, saving a substantial upfront investment in hardware and upkeep. In addition to facilitating easy interaction with current cloud services and applications, this approach offers improved scalability, enabling enterprises to modify resources in response to demand. Furthermore, cloud blockchain ensures that blockchain networks are safe and current by offering strong security measures and frequent updates. Because of these advantages, cloud blockchain is a desirable choice for companies trying to stay competitive and develop in a rapidly changing technological environment. The cloud blockchain segment is gaining momentum due to several compelling factors that appeal to businesses across various sectors. One of the primary drivers is the ability to reduce costs associated with infrastructure and maintenance, as cloud service providers manage these aspects.

By region, North America accounts for the highest market size during the forecast period.

The main blockchain firms that provide blockchain solutions for various industries like supply chain, healthcare, finance, and many more are based in North America. Regulatory barriers make it challenging for entrepreneurs to use technology for purposes other than finance, even though the US private sector is leading the way in high-tech innovation. Blockchain technology is being investigated by the US federal government as a means of streamlining and updating its procedures. A distributed ledger system might help the government develop tamper-proof transaction records, reduce the cost of document management, expedite processes, and offer a more secure environment for exchanging and storing data. The US comprises a majority of the North American blockchain technology market. Due to the robust supply chain infrastructure and technology companies, the US market for blockchain technology is projected to dominate the overall North American market during the forecast period.

List of Blockchain Companies

The key players in the blockchain market are AWS (US), Oracle (US), IBM (US), Huawei (China), Accenture (Ireland), TCS (India), Google (US), Alibaba (China), Microsoft (US), OVHcloud (France), SAP (Germany), and HPE (US), Tencent (China), Wipro (India), Infosys (India), Lumen Technologies (US), DigitalOcean (US), VMware (US), Applied Blockchain (UK), ConsenSys (US), Akamai (US), Contabo (Germany), Leewayhertz (US), Vultr (US), Cloudsigma (Switzerland), Mevspace (Poland), and Scaleway (France).

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Scope of the Report

The study categorizes the blockchain market by segments - component, provider, type,  deployment mode, organization size, vertical, and region.

By Component:

• Platform
• Services

By Provider:

• Application Provider
• Infrastructure Provider
• Middleware Provider

By Type:

• Public
• Private
• Hybrid
• Consortium

By Deployment Mode:

• Cloud
• On-Premises
• Hybrid

By Organization Size:

• SMEs
• Large Enterprises

Vertical:

• Transportation & Logistics
• Agriculture & Food
• Manufacturing
• Energy & Utilitites
• Healthcare & Life Sciences
• Media, Advertsement & Entertainment
• Banking & Financial Services
• Insurance
• IT & Telecom
• Government
• Real Estate & Construction
• Other Verticals

By Region:

• North America
• Europe
• Asia Pacific
• Middle East & Africa

Recent Developments

• In April 2024, Casper Labs partnered with IBM Consulting to develop a blockchain solution for AI systems. This partnership aimed to improve transparency and auditability in generative AI, allowing users to understand the data and processes behind AI-generated outputs.
• In August 2023, Huawei Cloud partnered with COBO, a digital asset custody company, to provide a secure and reliable infrastructure for blockchain applications.
• In July 2023, AWS launched Amazon managed blockchain (AMB) query that offers serverless access to standardized datasets from multiple blockchains through developer-friendly APIs.
• In October 2022, TCS updated its Quartz blockchain solution to support central bank digital currencies (CBDCs). The update supported the life cycle of a CBDC for central banks, including issuance, executing, and recording transactions.
• In March 2022, Accenture launched the Metaverse Business Group to help build extended reality, blockchain, digital twins, and edge computing that are converging to reshape the human experience.

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