Global Blockchain-as-a-Service Market Grows Significantly at a CAGR of 58%

Introduction

Blockchain-as-a-Service (BaaS) is a cloud-based service that allows businesses and developers to build, host, and manage blockchain applications and smart contracts without building and maintaining their blockchain infrastructure. It makes blockchain technology easier to use by providing pre-configured templates, tools, and infrastructure components, reducing the complexity and cost of building and running blockchain networks.

Small and medium-sized organizations' increased usage of blockchain-as-a-service (BaaS) tools and services to build their blockchain applications, smart contracts, and payment systems is expected to fuel market growth over the forecast period. Small and medium-sized enterprises benefit from BaaS services like secure decentralization, high immutability, efficiency, cost-effectiveness, security, etc. Furthermore, the evolution of cryptocurrencies and initiatives to increase awareness and use of blockchain-as-a-service among large enterprises will fuel market expansion.

Market Dynamics

Democratization of Blockchain Technology Drives the Global Market

BaaS is essential for blockchain democratization. It lowers barriers and makes blockchain accessible to companies of any size or technology. SMEs often lack the resources and expertise to construct and manage blockchain infrastructure. BaaS is affordable and simple. A BaaS platform lets a small logistics company use blockchain for transparent supply chain tracking without an IT workforce. Deloitte research found that 40% of SMEs think blockchain technology applies to their sector. BaaS technologies let these companies leverage blockchain without in-house expertise.

Also, BaaS is not limited to advanced economies. BaaS is also being used in emerging regions to take advantage of blockchain. BaaS is rising due to global use. Microsoft Azure, a top BaaS platform, is available worldwide. This global reach shows BaaS's great demand in diverse areas. Organizations will continue to adopt Blockchain-as-a-Service as it becomes more accessible and beneficial.

Integration with Emerging Technologies Creates Tremendous Opportunities

Integration of BaaS with IoT is a huge opportunity. IoT devices generate large amounts of data that must be secured. BaaS provides the infrastructure needed to secure data. A smart city project that uses an IoT network for traffic control, waste collection, and environmental monitoring can use BaaS to construct a secure and scalable data transmission and storage infrastructure. BaaS helps with IoT security challenges like identification, data integrity, and access control. According to Gartner, IoT devices will make over 30% of enterprise access control decisions by 2023, increasing demand for blockchain-based secure access management.

BaaS and IoT provide supply chain monitoring, where IoT sensors monitor item conditions and locations and securely store the data on a blockchain to ensure transparency and trust. More enterprises will use IoT devices, increasing the need for secure and effective data management solutions. These apps can use BaaS's reliable and scalable infrastructure.

Regional Insights

The North American blockchain-as-service market increased significantly during the forecast. Blockchain technology is used more in software companies, banks, and insurance companies in Canada and the US, propelling the blockchain-as-a-service business. Over time, growing e-commerce and online retail would boost regional market proceeds. Small and medium-sized firms in countries like the US will need real-time financial transaction processing, accelerating regional market growth in the coming decade. Between 2014 and 2017, the China Academy of Information and Communications Technology (CAICT) reported 2,000 US blockchain projects.

Additionally, in the U.S., around 500 companies offer blockchain services. The US and Canadian governments also invest in blockchain services for airports, banking, and defense and military. US taxpayers provided USD 2.51 billion to blockchain technology companies.

The Asia-Pacific market is projected to expand at a fast pace. Major companies like Huawei Service (Hong Kong) Co., Limited, BitSE, and others are pushing growth in this region. About 298 blockchain technology and service companies operate in China, according to CAICT. Additionally, significant firms and governments investing in blockchain-based projects will enhance market growth soon.

Furthermore, CAICT reports that the Chinese government accepted blockchain technology in May 2018 for its many benefits. Several blockchain projects received around USD 600 million from the Chinese government. The government worries about Bitcoin's impact on financial stability, the economy, and the public. After consulting with the Bank of Thailand and holding a public hearing from January 25 to February 8, 2022, the Securities and Exchange Commission of Thailand (the "SEC") issued a directive on using cryptocurrency as a payment method on January 25, 2022. The rule prohibits "digital asset business operators" from accepting bitcoins for goods and services. These should fuel the regional market. 

Key Highlights

• The global blockchain-as-a-service market size was valued at USD 1.3 billion in 2022. It is estimated to reach USD 79.77 billion by 2031, growing at a CAGR of 58% during the forecast period (2023–2031).
• The component is further classified as Tools and Services. The highest market share belongs to tools.
• The market is divided based on the applications into Payment, smart contracts, supply chain management, identity management, governance, risk, and compliance management. Supply Chain Management drove market expansion.
• The market is divided into verticals: BFSI, IT and Telecom, Healthcare, Retail, Manufacturing, Logistics, Government, Media and Entertainment, Energy and Utilities. BFSI had an impact on market expansion.
• Depending on the region, the market is analyzed in North America, Asia-Pacific, Europe, and LAMEA. North America is the most significant global market shareholder and is estimated to grows at a healthy CAGR over the forecast period. 

Competitive Players

Competitive Landscape

The key players in the global Blockchain-as-a-Service Market are IBM, Microsoft, Alibaba, Oracle, SAP, Baidu, Accenture, NTT Data, Infosys, Stratis Group, VMware, and Huawei Service.

Recent Developments

Market News

• In October 2023, EY and IBM launched an AI Solution to increase productivity and drive efficiencies in human resources.
• In October 2023, Oracle expanded its distributed cloud offerings to let organizations innovate from anywhere.

Segmentation

Global Blockchain-as-a-Service Market: Segmentation

By Component

• Tools
• Services

By Application

• Payment
• Smart Contracts
• Supply Chain Management
• Identity Management
• Governance
• Risk
• Compliance Management

By Vertical

• BFSI
• IT and Telecom
• Healthcare
• Retail
• Manufacturing
• Logistics
• Government
• Media and Entertainment
• Energy and Utilities

By Region

• North America
• Asia-Pacific
• Europe
• The Middle East and Africa
• Latin America