Blockchain Distributed Ledger Market Size, Share & Trends Analysis Report By Component  (Solution, Service), By Type (Private, Public, Hybrid), By Enterprise Size (Large Enterprises, Small & Medium Enterprises), By Application (Payments, Smart Contracts, Supply Chain Management, Compliance Management, Trade Finance, Others), By Industry Vertical  (BFSI, Government & Public, Manufacturing, Retail & E-Commerce, Media & Entertainment, Transportation & Logistics, Healthcare, Energy & Utilities, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global blockchain distributed ledger market had a revenue share of USD 7,038 million in 2021, presumed to reach USD 3,50,712 million, expanding at a CAGR of 63% during the forecast period. A database that is openly shared and synchronized between several locations, organizations, or geographies and is usable by many individuals is called a distributed ledger. Because distributed ledgers lack a centralized database storage mechanism, unlike traditional databases, financial authorities can check and correct errors. A blockchain-enabled distributed ledger also offers several additional advantages, such as a decrease in operational inefficiencies, an increase in transaction speed, and a decrease in an organization's operating costs. Development in the use of blockchain-enabled distributed ledgers across different fintech organizations is also a result of the rise in cyberattacks and the necessity to safeguard essential data for businesses.

The global blockchain distributed ledger market is expanding as more extensive and medium-sized businesses use distributed ledger technology to boost their income opportunities and as more industries become aware of the potential of blockchain distributed ledger technology. Additionally, the industry is growing because of the minimal risk of data fraud and the low cost of blockchain distributed ledger applications. However, it is anticipated that the lack of understanding of cryptocurrencies among the populace in undeveloped countries will impede market expansion. In contrast, it is expected that Internet of Things (IoT) integration in blockchain distributed ledgers will significantly affect the development of the blockchain distributed ledger market.

Market Dynamics

Enhanced capital optimization and data security among organizations

The market's expansion is driven by a rise in the adoption of blockchain distributed ledger technology among large and medium-sized businesses due to increased global capital market share. Additionally, several small and medium enterprises utilize blockchain distributed ledgers for several advantages, including lower operational costs, increased liquidity, reduced counterparty risk, and a simplified regulatory reporting procedure. Additionally, the blockchain distributed ledger removes the requirement for a trustworthy intermediary for exchanging critical organizational information and aids customers, employees, and businesses protect their most crucial data from security breaches. As a result, the blockchain distributed ledger market is expanding due to better capital efficiency and security problems in companies.

In addition, large and medium-sized businesses must store and distribute private information among the numerous project parties. As a result, companies are using distributed ledgers on the blockchain to manage this vital and transactional data safely. Additionally, three dimensions of data security for organizations are improved by using blockchain distributed ledger technology: preventing identity theft, avoiding data manipulation, and preventing denial-of-service assaults. The market is also growing due to banks and other financial institutions adopting blockchain distributed ledger technology faster since the risk of a backdoor transaction and unapproved interference is rising.

Increasing transparency and independence

Due to increased data openness and independence between funders, aid organizations, and NGOs, the blockchain distributed ledger market is anticipated to experience promising growth in the years to come. The usage of blockchain-distributed ledgers in the retail sector offers several advantages, including transparent product information transmission and receipt and safe consumer data storage for future use. For instance, Walmart Inc., one of the top retail companies in the United States, has been tracking and recording its product information using blockchain distributed ledger technology. Hence, the expansion is fueled by several advancements among the key market participants. Furthermore, the cutting-edge blockchain distributed technology protocols would eliminate the need for specific organizational solutions and permit various participants to communicate data transparently within the business. These solutions increase supply chain transparency, reduce environmental crimes, and do other things that encourage the use of blockchain distributed ledger in the future.

Legalization of cryptocurrency

The acceptance of cryptocurrencies by the law motivates companies and investors to increase their blockchain technology investments. Also, it motivates market participants to work harder to enhance their services to stand out from the competition. Blockchain technology is anticipated to become more effective and efficient shortly, thanks to the company's efforts. DeFi is a new blockchain-based financial system that lessens banks' power over financial services and money. Throughout the projection period, market growth is anticipated to be driven by the expanding strategic initiatives in the decentralized finance domain. For instance, the payment company Square stated in July 2021 that it would be starting a DeFi-specific business using bitcoin.

Market restraining factors

The Inadequate Understanding Of Cryptocurrency

The growth of the market globally is constrained by the various rising countries' lack of knowledge about cryptocurrencies. The global economy is transitioning to a digital ecosystem that includes investing, lending, and money transfer services. Cryptocurrency is the latest and most promising form of electronic payment currently being used. The cryptocurrency business has paved the way for the widespread adoption of distributed ledger technology in the financial and public sectors. The global expansion of the blockchain distributed ledger market is hampered by the fact that many people, as well as the economic and government sectors, are less aware of how to conduct transactions using cryptocurrencies and blockchain in developing countries like Australia and India.

Key market opportunities

Advent of IoT

By incorporating cutting-edge technology like IoT into blockchain distributed ledgers, service providers may improve decision-making, provide better customer service, and add value to their organizations. IoT-based blockchain distributed ledger lowers operating costs and complexity while assisting in developing better business insights. Additionally, incorporating AI into blockchain improves businesses' capacity to adapt to new technologies and facilitates the achievement of organizational objectives. Various insurance companies are currently implementing IoT-based blockchain distributed ledger technology, which helps to verify the legitimacy of policies, transactions, and consumers by providing historical records and lowers administrative expenses through automated claims data validation. The expansion of the market is anticipated to benefit from the rising number of IoT applications using blockchain distributed ledger technology.

Regional Analysis

The region-wise segmentation of the global blockchain distributed ledger market includes North America, Europe, Asia-Pacific, and LAMEA.

North america and the asia pacific will dominate the regional market

North America will command the market with the largest market share while expanding at a CAGR of 59.3%. Due to advancements in the automotive and media & entertainment industries for adopting advanced technologies, North America is the most significant contributor to the worldwide market for blockchain distributed ledgers. 9 out of 10 leading banks in the United States and Canada are now investigating blockchain technology in financial payments, according to a poll by a professional services organization. In addition, it is anticipated that the blockchain distributed ledger market will develop due to the expansion of blockchain technology startups in the area, supported by significant venture capital investments.

Additionally, minimizing infrastructure costs for banks' cross-border payments and lowering transaction costs for insurance companies are some of the main drivers of implementing blockchain-distributed ledgers in this area. A profitable opportunity for expanding the blockchain distributed ledger market in North America is anticipated due to the increased dangers of cyberattacks, fraudulent transactions, and data theft brought on by adopting new payment technology.

The Asia Pacific will expand at a CAGR of 69.3% and hold USD 1,16,222 million. In Asia Pacific, blockchain is gradually becoming more widely used. The Asia Pacific is home to several Bitcoin exchanges, promoting healthy competition and industry maturity. The Chinese government encourages the use of bitcoin technology, and Chinese banks are recruiting blockchain specialists to reduce fraud and boost transparency in the nation's financial system. A group of Japanese banks intends to make local and international payments using distributed ledger technology provided by a FinTech startup with backing from Google. The Reserve Bank of India has additionally successfully tested blockchain technology for use in commerce.

Leading market players like Antier Solutions, Debut Infotech, and Ionixx Technologies have also created user-friendly, inexpensive, and energy-efficient cryptocurrencies that offer lucrative opportunities to stimulate the development of the blockchain distributed ledger market in the Asia-Pacific region.

Segmental Analysis

The global blockchain distributed ledger market is classified based on component, type, enterprise size, application, industry vertical, and region.

By component

Based on the component, the categories include solution and service.

The solution section is projected to advance at a CAGR of 62% and hold the largest market share. The solution segment includes software and platforms for storing, organizing, and analyzing data. These technologies help firms make better decisions or increase income using their data. Most firms have adopted this blockchain-based distributed ledger system to manage large amounts of data for better insights and choices. Companies focus on growth and revenue development, boosting the popularity of distributed ledger solutions across industries. Key companies are using many methods to increase their product offerings to fuel market growth.

The service section will hold the second-largest market share. The implementation of services guarantees the solution's efficient operation with transparency and oversight throughout the process—professional and managed services for big blockchains. The banking and fintech industries' growing demand for distributed ledger services to minimize cyberattack risk and increase security will likely drive market expansion during the projected period.

By type

Based on the type, the categories include private, public, and hybrid.

The private section is projected to advance at a CAGR of 60.1% and hold the largest market share. A private blockchain adds another layer of protection to a blockchain system, giving participants complete control over specific actions. It's centralized and has a more excellent order of magnitude than a public blockchain. The rise in acceptance of blockchain distributed ledger among different businesses due to its benefits pushes the expansion of private blockchain distributed ledger among end users. Large and medium-sized enterprises use private blockchain distributed ledgers to allow banks and financial institutions to transfer client financial information via smart contracts securely.

The public section will hold the second-largest market share. A blockchain is an open network that allows anyone to view or write in the blockchain is called a public blockchain. It's a decentralized procedure where a single entity controls network information. Public blockchain data is available to everyone by default, although participants' identities are often hidden. This openness provides advantages that have never existed, such as the capacity to defy hacking or capital controls from authoritarian regimes. Developers prefer public blockchains over private blockchains since they have more advantages.

By enterprise size

Based on enterprise size, the categories include large enterprises and small & medium enterprises.

The large enterprise section is projected to advance at a CAGR of 61.6% and hold the largest market share. The blockchain distributed ledger helps large corporations improve data tracking and payment processing. It's frequently used in retail, logistics, and transportation since it can trace data from the farmer to the supplier and broker and streamline and improve data security during international transit. These sectors invest extensively in blockchain distributed ledger technology to receive personal data from mobile devices worldwide. Moreover, the advent of digital payment systems and worldwide payment in large companies creates market prospects.

The small & medium enterprise section will hold the second-largest market share. Market growth is driven by SMEs adopting blockchain distributed ledger to maintain personal information via usernames and passwords on centralized platforms. SMEs generate vast amounts of data; they use blockchain-distributed ledgers to handle it. Increasing demand for blockchain distributed ledger solutions among small & medium firms to access transactional information in real-time, accelerate customer service and compete with larger rivals drives market expansion.

By application

The application categories payments, smart contracts, supply chain management, compliance management, trade finance, and others are based on the application.

The supply chain management section is projected to advance at a CAGR of 62.5% and hold the largest market share. Supply chain management entails overseeing the flow of goods and services, including all activities turning raw materials into finished commodities. Blockchain distributed ledger technology is the attention of significant market players to learn more about consumer demand and preferences. The use of blockchain distributed ledger technology is also fueled by an increase in rivalry among businesses to offer higher customer satisfaction and a more individualized experience.

The payments section will hold the second-largest market share. The exchange of goods/services or money for agreed-upon amounts of acceptable goods and services from all parties is payment. Due to the surge in demand for international payments, particularly beyond the SEPA Zone, and clients' growing needs for quicker processing, more straightforward reconciliation, and better fee transparency, the market for blockchain distributed ledgers is experiencing development in the payment application.

By industry vertical

Based on the industry vertical, the categories include BFSI, government & public sector, manufacturing, retail & e-commerce, media & entertainment, transportation & logistics, healthcare, energy & utilities, and others.

The BFSI sector is projected to advance at a CAGR of 59.5% and hold the largest market share. Blockchain distributed ledger technology enables all network participants to view the system of record. It transforms businesses like banking and finance. Blockchain can make financial transactions faster, cheaper, secure, and transparent. Blockchain is anticipated to lessen the friction created in financial networks when various intermediaries use different technology infrastructures by offering a universal, standard ledger technology. Streamlining infrastructure and reducing unnecessary intermediaries can boost efficiency.

The manufacturing sector will hold the second-largest market share. The blockchain distributed ledger allows a manufacturer to offer its open financial position and accounting firm certification. A considerable increase in venture capital investments, a rise in the demand for real-time data analysis, and the opportunity to streamline corporate operations are just a few of the key drivers boosting the adoption of blockchain distributed ledger solutions in this sector.

Recent Developments

• In February 2023, Amazon expanded NAT Gateway's ability to accommodate many connections to a single destination.
• In February 2023, The Intel® Xeon® w9-3495X, the company's most potent desktop workstation processor ever created, was unveiled with the new Intel® Xeon® W-3400 and Intel® Xeon® W-2400 desktop workstation processors (code-named Sapphire Rapids).