Blockchain Technology Market

Blockchain Technology Market Outlook (2024 to 2034)

The global blockchain technology market is projected to increase from a size of US$ 19.7 billion in 2024 to 2,450.4 billion by the end of 2034, expanding rapidly at a CAGR of 62% between 2024 and 2034.

The key contributor to the expansion of the blockchain market is the widespread implementation of this technology across various sectors such as BFSI, entertainment, healthcare, and media. Blockchain solutions are being increasingly adopted for making payments as well as for creating digital identities and smart contracts.

The rise in venture capital investments in blockchain technology start-ups is another factor contributing to market growth. The adoption of blockchain technology has been rising since the introduction of Bitcoin and is now being utilized by various financial institutions for transactions.

Report Attributes	Details
Blockchain Technology Market Size (2024E)	US$ 19.7 Billion
Projected Market Value (2034F)	US$ 2,450.4 Billion
Global Market Growth Rate (2024 to 2034)	62% CAGR
China Market Value (2034F)	US$ 268.9 Billion
Canada Market Growth Rate (2024 to 2034)	62.7% CAGR
North America Market Share (2024E)	23.9%
East Asia Market Value (2034F)	US$ 566 Billion
Key Companies Profiled	IBM Corp. Microsoft Corp. The Linux Foundation BTL Group Ltd. Chain Inc. Monax Ripple Global Arena Holding, Inc.

What’s Leading to Swift Blockchain Technology Market Expansion?

“Increasing Acceptance of Cryptocurrency by Various Merchants as Mode of Payment”

Acceptance of cryptocurrency as a payment mode by companies such as PayPal and Xbox is one of the key blockchain technology market trends. Various restaurants are entering into partnerships with cryptocurrency solution providers to facilitate cryptocurrency-based payments to their customers.

• For instance, in 2021, Bakkt Holdings LLC, which is a digital asset marketplace, declared its partnership with Quiznos, a Quick-service Restaurant (QSR), to launch its physical location pilot. This pilot allowed the customers of Quiznos to pay with Bitcoin at select locations.

The legalization of cryptocurrency encourages businesses and investors to invest more in blockchain technology. It also encourages market players to make more efforts to improve their services to gain a competitive edge. These efforts made by companies are projected to make blockchain technology more effective and efficient in the near future. DeFi, or decentralized finance, is an emerging financial technology based on blockchain that reduces the control banks have over financial services and transactions.

What Challenges are Encountered by Blockchain Technology Solution Providers?

“Lack of Skilled Professionals to Address Risk Factors Associated with Blockchain Technology”

Digital transformation in industries has amplified the risk of various threats and cyberattacks. Organizations face a scarcity of skilled professionals to overcome the risk factors. The adoption of technologically advanced solutions has been slow and is projected to impact market growth over the next few years. Developing countries such as India, Peru, and Mexico are facing the issue of a lack of awareness about the risks regarding data protection. The adoption of this technology is projected to be stationary for a few years.

The absence of dedicated regulations governing the use of blockchain for fintech applications is holding back the growth of the market. Unlike Bitcoin, blockchain technology creates a distributed ledger with known participants who have been predefined and received the necessary KYC certifications. A financial unit is no longer necessary to begin and authorize transactions because of aspects including high transparency, an auditable transaction log, lesser infrastructure costs, and lower counterparty risks.

Country-wise Insights

Fact.MR, a market research and competitive intelligence provider, through its newly published analysis that North America is projected to hold a 24.3% blockchain technology market share by 2034. Producers of blockchain technology have broadened their horizons, extending their operations to diverse global regions including Southeast Asia, Central and South America, and Australia.

How is the Regulatory Environment in the United States Supporting Market Growth?

“Favorable Government Regulations Supporting Blockchain Innovation and Research”

Attribute	United States
Market Value (2024E)	US$ 2.1 Billion
Growth Rate (2024 to 2034)	62.7% CAGR
Projected Value (2034F)	US$ 271.5 Billion

The United States is estimated to occupy a leading share of the blockchain market in 2024. Early adoption of blockchain and the presence of several blockchain and security solution providers are expected to fuel blockchain technology market growth in the country. Companies in this nation have ramped up the deployment of security and management solutions to ensure data privacy, thus preventing cyberattacks for business continuity.

Government initiatives and favorable regulations governing the implementation of blockchain technology are significant market drivers. Also, businesses and consumers are well aware of the role of blockchain technology in streamlining processes and reducing costs. All of these factors are contributing to the expansion of the blockchain technology market size in the United States.

What Strategies are Adopted by Blockchain Technology Providers in China?

“Focus on Development of National Blockchain Platforms and Research Investments”

Attribute	China
Market Value (2024E)	US$ 2.2 Billion
Growth Rate (2024 to 2034)	62% CAGR
Projected Value (2034F)	US$ 268.9 Billion

The development and launch of national blockchain platforms, which are part of China's grand plan to lead the digital transformation of the world economy, is a key strategy. This is seen as a move similar to the “One Belt One Road Initiative” where China provides other countries with infrastructure support and gains a first-mover advantage.

Another strategy is the establishment of industry standards, tax incentives, and intellectual property protection to support the blockchain industry. This is coupled with the government’s support for blockchain firms and applications, which has boosted the use of the technology across the country.

China has dedicated significant resources to blockchain technology and made strides in assessing its potential within its own industries. For China, distributed ledger technology (DLT) is part of a broader technology vision that aims to position the country at the forefront of the global community. This vision has led to many innovation initiatives and has positioned China as a leader in the adoption of blockchain technology.

Category-wise Insights

Blockchain technology components are divided into three segments: applications & solutions, infrastructure & protocols, and middleware. Out of these three, the infrastructure & protocols segment is estimated to account for a leading market share of 60% in 2024. Middleware is also a crucial component of a blockchain network as it facilitates seamless communication between different networks and legacy systems. This enhances interoperability to a great extent.

Which Component Claims a Leading Share of the Blockchain Technology Market?

“Foundational Role of Infrastructure and Protocols in Blockchain”

Attribute	Infrastructure & Protocols
Segment Value (2024E)	US$ 11.8 Billion
Growth Rate (2024 to 2034)	60.9% CAGR
Projected Value (2034F)	US$ 1,370 Billion

The infrastructure and protocols component claims a leading share of the market. This dominance is attributed to the foundational role that infrastructure and protocols play in blockchain technology. They provide the underlying architecture upon which various applications and solutions are built, making them indispensable to the functioning of the blockchain.

The blockchain protocol determines the rules for the operation of a blockchain network, and the infrastructure component encompasses the servers and nodes that support the operation of the network. They are the first point of innovation where advancements in scalability, interoperability, and security are made, thus driving their significance.

What Advantages of Public Cloud are Driving Extensive Adoption among Businesses?

“Growing Adoption of Public Cloud Driven by Scalability and Cost-Effectiveness”

Attribute	Public Cloud
Segment Value (2024E)	US$ 12.2 Billion
Growth Rate (2024 to 2034)	60.6% CAGR
Projected Value (2034F)	US$ 1,390 Billion

Inherent characteristics of a public cloud such as scalability, cost-effectiveness, and accessibility are driving its adoption in blockchain technology networks. The ability to scale resources up or down based on demand makes the public cloud an attractive option for blockchain deployments. A public cloud facilitates efficient cost management, as its pay-as-you-go model eliminates the need for upfront capital investment in infrastructure. The aim of implementing a public cloud is to make blockchain technology more accessible to a broader range of enterprises.

A public cloud offers enables effective collaborations between distributed teams on blockchain projects and therefore enhances accessibility. Advancements in cloud s1ecurity are responsible for the widespread adoption of public cloud solutions. All of these factors in turn contribute to blockchain technology market growth.

Competitive Landscape

Market growth is influenced by the ongoing demand for secure digital transactions across various industry verticals and governments worldwide. Key players in the blockchain technology industry are IBM Corp., Microsoft Corp., The Linux Foundation, BTL Group Ltd., Chain Inc., Monax, Ripple, and Global Arena Holding, Inc.

• In 2022, a partnership was formed between InfStones and Oracle to expedite the development of Web3. This collaboration involved the integration of InfStones’ premier blockchain development platform with the Oracle Cloud Infrastructure (OCI).

Key Segments of Blockchain Technology Market Research

• By Component :

  • Applications & Solutions
  • Infrastructure & Protocols
  • Middleware

• By Type :

  • Public
  • Private
  • Hybrid

• By Application :

  • Digital Identity
  • Exchanges
  • Payments
  • Smart Contracts
  • Supply Chain Management

• By Enterprise Size :

  • Large Enterprises
  • Small & Medium Enterprises

• By End Use :

  • Financial Services
  • Government
  • Healthcare
  • Media & Entertainment
  • Retail
  • Transportation & Logistics
  • Travel

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa