Blockchain Technology Market

Blockchain Technology Market Snapshot (2022-2032)

The global blockchain technology market is likely to be valued at US$ 7.36 billion in FY 2022. From 2022 to 2032, Blockchain technology is anticipated to flourish at a CAGR of 84% to reach a value of USD 3,273.83 Billion by the end of 2032.

The legalization of cryptocurrency facilitates businesses and investors to invest more in blockchain technology. Furthermore, it also encourages the market players to make more efforts to enhance their services to achieve a competitive edge.

These efforts made by the companies are anticipated to make blockchain technology more effective and efficient in the near future. DeFi is a developing financial technology based on blockchain, which reduces the control banks have over financial services and money.

The increasing strategic initiatives in the decentralized finance space are anticipated to drive market growth during the forecast period. For instance, in July 2021, Square, a payment company, announced that it is launching a business model dedicated to Defi using bitcoin.

This initiative is anticipated to help the company fortify its market position. The acceptance of cryptocurrency as a payment mode by companies, such as PayPal and Xbox, is expected to fuel market growth.

Various restaurants are entering into tie-ups with cryptocurrency solution providers to provide cryptocurrency-based payments to their customers. For instance, in August 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.

Various companies are making efforts to incorporate Artificial Intelligence (AI) capabilities with blockchain to augment their offerings, creating new prospects for market growth. For instance, in September 2019, Signzy Technologies Private Ltd., a RegTech startup, declared its partnership with Prime chain Technologies, a blockchain technology provider.

The partnership was intended toward developing AI-enabled smart banking solutions for financial institutions and banks. This smart banking solution incorporated AI and blockchain technologies to digitalize and automate back-office operations.

Report Attributes	Details
Anticipated Base Year Value (2021)	US$ 5.4 Billion
Expected Market Value (2022)	US$ 7.36 Billion
Projected Forecast Value (2032)	US$ 3273.83 Billion
Global Growth Rate (2022-2032)	84% CAGR
Growth Rate of the U.S Market (2022-2032)	68.1% CAGR
Expected Market Value of China (2032)	US$ 3.8 Billion
Germany Market Expansion Rate (2022-2032)	41.5% CAGR
Key Companies Profiled	IBM Corp. Microsoft Corp. The Linux Foundation BTL Group Ltd. Chain, Inc. Circle Internet Financial Ltd. Deloitte Touche Tohmatsu Ltd. Digital Asset Holdings, LLC Global Arena Holding, Inc. (GAHI) Monax Ripple

Demand Analysis of Blockchain Technology from 2015-2021 vs Future Outlook 2022-2032

From 2015 to 2021, the global blockchain technology market witnessed noteworthy gains, experiencing an impressive CAGR of 65%. Growth is majorly dependent on a growing number of business entities looking to leverage advanced data crunching and assimilation capabilities.

Prospects further increased during the pandemic, as businesses started to extensively depend on the internet and other virtual platforms to withstand their operations. Blockchain technology was widely utilized to undertake a wide range of processing activities, including financial transactions, gathering of research intelligence, and collecting critical data.

The global blockchain technology market is growing at a rapid rate in the coming years. The rising number of innovations and the increasing awareness among consumers regarding the benefits of using blockchain technology will propel the growth of the market. Considering these factors, the market is anticipated to witness high growth over the coming years, registering a CAGR of 84% to top US$ 3,273.83 Billion by 2032.

Key Drivers Stimulating Blockchain Technology Market Expansion

Increasing acceptance of cryptocurrency by Various Merchants as a Mode of Payment

The acceptance of cryptocurrency as a payment by companies, such as PayPal and Xbox, is anticipated to fuel market growth. Various restaurants are entering into partnerships with cryptocurrency solution providers to provide cryptocurrency-based payments to their customers.

For instance, in August 2021, Bakkt Holdings, LLC, 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. Furthermore, it also encourages the market players to make more efforts to improve their services to gain a competitive edge. These efforts made by the companies are expected to make blockchain technology more effective and efficient in the near future.

DeFi is an emerging financial technology based on blockchain, which reduces the control banks have on financial services and money. The growing strategic initiatives in the decentralized finance space are expected to drive market growth over the forecast period. For instance, in July 2021, Square, a payment company, announced that it is launching a business dedicated to DeFi using bitcoin.

Key Challenges to Blockchain Technology Industry Expansion

Lack of skilled professionals to hinder the market growth

The surge in digital transformation among industries has amplified various threats and cyberattacks. However, organizations face a scarcity of skilled professionals to overcome the situation of risk factors.

Therefore, the adoption of technologically advanced solutions is slow and is expected to impact the market growth for the next few years. Further, developing countries such as India, Peru, and Mexico among others, are facing a lack of awareness about the risks regarding data protection. Therefore, the adoption of the technology is likely to be stationary for a few years.

Lack of clarity regarding regulations will stagnate the growth

The absence of dedicated regulations to regulate the use of blockchain for fintech applications is holding back the growth of the blockchain technology market. Unlike Bitcoins, a distributed ledger with known participants that have already been defined in advance and received the required KYC certifications is created using blockchain technology.

Furthermore, 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. However, regulators and policymakers are concerned about blockchain technology at the super-national, international, and national levels.

Comparative view of Adjacent Blockchain Technology Markets

Blockchain Technology Market :

Attributes	Blockchain Technology Market
CAGR (2022-2032)	84 %
Market Value (2032)	US$ 3,273.83 Billion
Growth Factor (2032)	The use of cryptocurrency as a payment method is driving the growth of the blockchain technology market.
Opportunity	The most promising aspect of blockchain technology is the potential for instant settlement which is presenting an opportunistic prospect for the blockchain technology market.

Internet of Things Market :

Attributes	Internet of Things Market
CAGR (2022-2032)	72%
Market Value (2032)	US$ 1,400 Billion
Growth Factor (2032)	The emergence of 5G communications technology is expected to propel the growth of the IoT Technology Market.
Opportunity	Government support for research and development of IoT technologies is creating new prospects for this market.

Cryptocurrency Market :

Attributes	Cryptocurrency Market
CAGR (2022-2032)	13.9%
Market Value (2032)	US$ 8.7 Billion
Growth Factor (2032)	The increasing adoption of distributed ledger technology is expected to fuel the cryptocurrency market growth.
Opportunity	Increasing usage of cryptocurrencies for cross-border remittances is expected to create market opportunities due to the reduction in consumer fees and exchange charges.

Country-wise Analysis

Early adoption of blockchain is fueling the blockchain market in the US

The US is estimated to have the highest share of the blockchain market. The early adoption of Blockchain and the presence of several Blockchain and security solution providers are anticipated to fuel market growth in the region.

Companies in this region are increasingly deploying security and management solutions to enable data privacy, prevent cyberattacks, and ensure privacy and security data to encourage business continuity.

The market expansion is anticipated to be driven by the implementation of blockchain technology and the existence of many manufacturers offering blockchain and secure solutions.

Businesses in the region are taking steps to use blockchain and security solutions to drive business continuity by enabling data protection, preventing cyberattacks and economic hacks, and securing protect the security and privacy of data.

The need for cost reduction is driving the Blockchain Technology market in Europe

The blockchain market in Europe is anticipated to grow from US$ 1,235.08 Million in 2022 to US$ 59,141.33 Million by 2032; it is estimated to grow at a CAGR of 73.8% from 2022 to 2032.

Blockchain technology is still in its developing phase; however, the skyrocketing growth in the adoption of blockchain across diverse industry verticals has attracted attention from industry giants such as IBM and Microsoft and startups. In the past few years, many startups have emerged in the blockchain market primarily due to the immense amount of funds being poured in by venture capitalists.

These tech-savvy, robust, and "think-big" startups are boosting the Blockchain market with innovative and disruptive Blockchain solutions. Startups are also working with independent groups to develop Blockchain solutions for several industries ranging from banking to entertainment.

There is a huge influx of well-funded startups in the blockchain market. The positive outlook on the part of funding and startup activity is anticipated to boost the growth of the blockchain market in several industries such as BFSI, retail, government, logistics, and healthcare.

Examples of successful Blockchain adoption by big players to streamline diverse business functions include Walmart, Maersk, British Airways, UPS, and FedEx. Cost reduction and cost savings are the main priorities for any business.

Blockchain eliminates unnecessary third parties or mediators to reduce time and costs. With all these advantages, Blockchain enables businesses to improve operational productivity and transparency and lower operating costs, thereby helping them improve service quality and customer experience, which fuel the Europe blockchain market during the forecast period.

Adoption of e-wallets leading to blockchain market expansion in China

China is keen to apply blockchain technology across various domains like mobile payments, and travel bookings. 90% to 100% of the transactions take place through mobile payments, and around 65% of Chinese tourists are willing to pay through their mobile phones during their foreign travel, hence increasing the chance of data conspiracy.

These factors contribute to the growth of the Blockchain market. However, the future of Blockchain growth in China will rely on well-designed policies and regulations. Chinese policymakers are educating and protecting investors on the emerging and unregulated blockchain ecosystem. The hype on Blockchain Technology is pulling both corporations and the general public toward the technology

Country-wise Value CAGRs for the Blockchain technology market (2022-2032)

U. S	68.1%
Germany	41.5%
China	50.3%
Japan	37.9%
South Korea	34%
Canada	39.2%

Category-wise Insights

Public cloud segment dominating the blockchain market

The public cloud segment dominated the market in 2021 and accounted for more than 60.0% share of the global revenue. A public cloud blockchain is a multi-tenant environment where the computing space is shared with various other clients. several government bodies across the world are incorporating conventional systems with cloud technologies in the current day. The demand for public cloud is high as it provides cost competitiveness to enterprises.

Thrusting demand for blockchain standards is keeping the blockchain market afloat

The infrastructure & protocols segment dominated the market in 2021 and accounted for more than 62.0% share of the global revenue. The increasing demand for blockchain standards and protocols, such as Ethereum, Hyperledger, and Openchain is fueling segment growth.

The users demand protocols as they allow them to share information reliably and securely across cryptocurrency networks. Thus, the benefits offered by infrastructure and protocols, contribute to the segment’s growth.

Increased efficiency in digital payments surging the need for payment segment

The payments segment dominated the market in 2021 and accounted for more than 44.0% share of the global revenue. Blockchain technology enhances payment system efficiency, minimizes operating costs, and offers transparency.

These benefits are increasing its use in payment solutions, thus driving the segment growth. Furthermore, blockchain reduces the need for a middleman in payment processing, which is also a major factor fuelling segment growth.

Financial services segment paving the way for the growth of blockchain technology in terms of end-use

The financial services segment dominated the market in 2021 and reported a 38.0% share of global revenue. Financial services use blockchain technology for managing financial transactions taking place in businesses. Blockchain technology provides secure and efficient transactions, and this is propelling the demand for the technology in financial services.

The technology is anticipated to be widely adopted in this vertical, owing to factors, such as rising cryptocurrencies, high compatibility with the industry ecosystem, rapid transactions, Initial Coin Offerings (ICOs), and reduced total cost of ownership.

Start-ups in the Blockchain Technology Market

Every year, new start-ups pull to the forefront of the blockchain industry through exciting innovation, tech, and industry-disrupting business models. The top funded start-ups are-

• Founded in 2014 in New York, Chainalysis is a platform that provides banks, government agencies, and other members of the blockchain ecosystem with a litany of resources to help identify and eliminate hacked or stolen funds. Their anti-money laundering software aims to create safer interactions for all. it received funding of USD 537 million from the dragoneer investment group and the Blackstone Group
• Coinbase is a cryptocurrency app that was founded in 2012, allows users, including merchants, consumers, and traders, to buy and sell crypto currencies while building a digital portfolio of their investments. The app also provides several merchant processing systems and tools that are compatible with some of the largest websites on the internet. It was able to accumulate funding of US$ 553 Million from Aya Holding Inc. and cashmere
• Founded in 2017, Spring Labs’s platform is a California-based start-up by which users can expect faster and more secure information exchange due to the startup’s leveraging of blockchain transparency and data collection capabilities. With Spring Labs, fraud is reduced through an increase in verified identities, and the protection of consumer data is prioritized.

Market Competition

The competitive landscape of the market is highly fragmented in nature. The market players are focused on strategies, such as mergers and acquisitions, to strengthen their market position. some major companies operating in the market are-

• IBM Corp.
• Microsoft Corp.
• The Linux Foundation
• BTL Group Ltd.
• Chain, Inc.
• Circle Internet Financial Ltd.
• Deloitte Touche Tohmatsu Ltd.
• Digital Asset Holdings, LLC
• Global Arena Holding, Inc. (GAHI)
• Monax
• Ripple

Some key developments in this market are-

• In March 2019, Circle Internet Financial Limited completed the acquisition of SeedInvest, an equity crowdfunding platform. The acquisition was aimed at delivering a token marketplace that would allow individuals and businesses to raise capital and interact with investors through the open crypto infrastructure.
• In August 2021, Bakkt Holdings, LLC, a digital asset marketplace, announced its partnership with Quiznos, a Quick-service Restaurant (QSR), to launch its physical location pilot. This pilot enabled the customers of Quiznos to pay with bitcoin at select locations.
• In September 2019, Signzy Technologies Private Ltd., a RegTech startup, announced its partnership with Primechain Technologies, a blockchain technology provider. The partnership was aimed toward developing AI-enabled smart banking solutions for financial institutions and banks. This smart banking solution integrated AI and blockchain technologies to digitalize and automate back-office operations.

Key Segments Covered in the Blockchain technology Industry Survey

• By Component :

  • Application & Solution
  • Infrastructure & Protocols
  • Middleware

• By Type :

  • Public cloud
  • Private Cloud
  • Hybrid Cloud

• By Application :

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

• By Enterprise Size :

  • Large Enterprises
  • Small and Medium Enterprises

• By End Use :

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

• By Region :

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