Home Technology Blockchain Technology Market Size, Share, Report to 2031

Blockchain Technology Market

Blockchain Technology Market Size, Share & Trends Analysis Report By Type (Public, Private, Hybrid), By Components (Application and Solution, Infrastructure and Protocols, Middleware), By Applications (Digital Identity, Exchanges, Payments, Smart Contract, Supply Chain Management,, Others), By Enterprise Size (Large Enterprises, Small and Medium Enterprises), By End-User (Financial Services, Government, Healthcare, Media and Entertainment, Retail, Transportation and Logistic, Travel, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Report Code: SRTE3346DR
Study Period 2018-2030 CAGR 82.4%
Historical Period 2018-2020 Forecast Period 2022-2030
Base Year 2021 Base Year Market Size USD 5.88 Billion
Forecast Year 2030 Forecast Year Market Size USD 1314.03 Billion
Largest Market Asia-Pacific Fastest Growing Market Europe
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Market Overview

The global blockchain technology market was valued at USD 5.88 billion in 2021. It is projected to reach USD 1,314.03 billion by 2030, growing at a CAGR of 82.4% during the forecast period (2022-2030). 

Blockchain technology is a framework for storing public transactional records (sometimes referred to as "blocks") across multiple databases in a network connected by peer-to-peer nodes. This type of storage is frequently referred to as a "digital ledger." The acceptance of cryptocurrencies by the law motivates companies and investors to increase their blockchain technology investments. Additionally, it encourages 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. The market growth is anticipated to be driven by the expanding strategic initiatives in the decentralized finance domain.

Market Dynamics

Global Blockchain Technology Market Drivers

  • Increasing Acceptance of Cryptocurrency

Blockchain forms the base technology for Bitcoin, a cryptocurrency created and managed using an advanced encryption technique called cryptography. Numerous advantages of blockchain technology exist, including decentralization and transaction anonymity. The application portfolio of blockchain technology is expanding to include a wide range of businesses due to cutting-edge encryption and decryption algorithms. No financial institution is required to begin and validate transactions, which is one of the main factors promoting the adoption of cryptocurrencies. Instead, as long as the recipient is linked to the same network, blockchain technology enables any coin owner to send the desired amount to the other party. Blockchain is a better database because transactions are encrypted more thoroughly, and data can be accessed for auditing reasons but cannot be modified or changed. Such a setup eliminates the typical risks that online financial transactions typically encounter. As a result, blockchain-based cryptocurrencies are becoming more popular.

Global Blockchain Technology Market Restraint

  • Lack of Clarity Regarding Regulations

One of the major factors restraining the growth of the blockchain technology market is the absence of dedicated regulations to regulate the use of blockchain for fintech applications. 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 entity is no longer necessary to begin and validate transactions because of aspects including high transparency, an auditable transaction log, fewer infrastructure costs, and low counterparty risks. However, regulators and policymakers remain concerned about blockchain technology at the super-national, international, and national levels. The present debate centers on whether blockchain apps need to be registered under the regulatory frameworks for commissions, such as those that apply to clearing or transfer agents. Regarding integrating such technologies inside the federal securities regulations, uncertainty abounds.

Global Blockchain Technology Market Opportunities

  • Instant Settlement of Financial Transactions

One of the most promising aspects of blockchain technology is the potential for instant settlement. Currently, the settlement process usually takes 2-3 days in the U.S. Other financial transactions, such as syndicated loans, may take up to 20 days to clear. By giving a clear indication of the participant's present state in the overall approval process and enabling the participant to observe the sequence of required papers, the implementation of blockchain technology is anticipated to revolutionize the settlement process and shorten the settlement time.

The risk of a capital tie-up increases with a drawn-out settlement process, but blockchain technology can guarantee a quicker settlement window and cheaper trading costs. Additionally, it aids in lowering counterparty risk and enhancing the overall effectiveness of the settlement procedure. In other words, blockchain technology has a critical role in improving operational and financial efficiency by lowering the settlement period from T+3 to T+0.

Regional Analysis

North America Dominates the Global Market

The global blockchain technology market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

North America is the most significant global blockchain technology market shareholder and is expected to grow at a CAGR of 81.5% during the forecast period. The market expansion in North America is driven by the rising number of blockchain technology-based startups in the region. States across the U.S. are currently promoting the usage of blockchain technology. For instance, a bipartisan bill exempting cryptocurrencies from security requirements was enacted in Colorado. Similar to this, Oklahoma introduced a law that permits cryptocurrencies to be used, offered, sold, received, and exchanged within the state's government entities as a medium of temporary value. However, some American states, like Lowe, have proposed legislation making it illegal for states and political subdivisions to accept cryptocurrencies as payment. Authorities have restricted the use of cryptocurrencies in at least ten U.S. states, including Hawaii and Maryland. Various states in the United States are working to encourage industries to adopt innovative technologies. For example, Arizona has chosen the regulatory sandbox model to promote emerging technologies like blockchain, fintech, and cryptocurrencies.

Europe is expected to grow at a CAGR of 81.9%, generating USD 378,437.34 million during the forecast period. Banks in the U.K. have not yet created a central bank digital currency since cryptocurrency is not recognized as money or has the same value as fiat currency in the country. To develop a single EU policy on blockchain and European blockchain infrastructure for public services, the EEA Member States, the EU, and the European Commission jointly launched the European Blockchain Partnership. European nations are making efforts to implement blockchain technology throughout the industry. As an illustration, Austria founded the Austrian Blockchain Center to investigate blockchain applications in energy, logistics, the internet of things, and others. Germany's energy industry is also expressing interest in the blockchain ecosystem. For instance, Energy Web and the Elia Group, an oil and energy corporation, announced a multi-year agreement. The partnership's primary goals would be to validate and test blockchain-based systems.

Asia-Pacific is anticipated to grow significantly over the forecast period. Asia-Pacific nations, including Singapore, Hong Kong, Japan, Thailand, and Malaysia, have regulated cryptocurrencies. The Securities and Futures Commission of Hong Kong unveiled its licensing framework for cryptocurrency exchanges in November 2018. In the next ten years, consumer products companies in Asia-Pacific are predicted to use blockchain technology, according to a study by Ernst & Young. By 2022, a blockchain-based stock exchange is anticipated to exist in Japan. A digital stock market will be launched by SBI Holdings in collaboration with Sumitomo Mitsui Financial Group, allowing investors to conduct digital trades using blockchain technology. The Japanese government is working to hasten the country's adoption of blockchain technology.

The Indian government has started taking steps to legalize cryptocurrencies. The government mandated that businesses in the nation disclose their virtual currency transactions on their balance statements as of March 2021. This program hopes to increase investor and government openness and open up new business opportunities. In addition, Indian businesses are working to improve the adoption of blockchain technology there. For instance, the Distributed Ledger Technology solution has been deployed by Tech Mahindra in collaboration with IBM and Microsoft and will be used to track customer complaints against UCC.

The absence of cryptocurrency rules in Brazil has forced several firms, including Acesso Bitcoin, Latex, and Xdex, to cease operations there because of the difficulties they encountered operating in an unregulated market. To address several of these issues, the Brazilian government declared in April 2020 that cryptocurrency exchanges will soon be subject to the code 6619-3/99. In addition, by 2025, JBS, a Brazilian meatpacker, intends to stop deforestation in the Amazon by keeping an eye on its supply chain. The corporation plans to use blockchain technology to monitor its indirect cattle suppliers. Brazilian online currency exchange brokers Cambio Store and BeeTech also declared that they are investigating blockchain technology to improve financial operations' transparency and cut expenses.

Report Scope

Report Metric Details
Segmentations
By Type
  1. Public
  2. Private
  3. Hybrid
By Components
  1. Application and Solution
  2. Infrastructure and Protocols
  3. Middleware
By Applications
  1. Digital Identity
  2. Exchanges
  3. Payments
  4. Smart Contract
  5. Supply Chain Management,
  6. Others
By Enterprise Size
  1. Large Enterprises
  2. Small and Medium Enterprises
By End-User
  1. Financial Services
  2. Government
  3. Healthcare
  4. Media and Entertainment
  5. Retail
  6. Transportation and Logistic
  7. Travel
  8. Others
Company Profiles Deloitte Touche Tohmatsu Limited Digital Asset Holdings LLC Global Arena HoldingInc. IBM Corporation Interbit Microsoft Corporation Oracle Ripple Monax Industries Limited The Linux Foundation Circle Internet Financial Limited
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global blockchain technology market is segmented by type, component, application, enterprise size, and end-user.

Based on Type

The global market is bifurcated into public, private, and hybrid.

The public segment is the highest contributor to the market and is expected to grow at a CAGR of 83.1% during the forecast period. Blockchain technology offers distributed retention of encrypted data on the public cloud. Additionally, the public cloud makes data and apps with blockchain support accessible. The advantages of integrating blockchain technology and the public cloud include decentralization, improved data security, accelerated disaster recovery, and improved essential private security. This is anticipated to fuel the public cloud segment's expansion over the forecast period.

Private cloud investment has increased due to growing security concerns, significantly speeding up penetration. A private cloud service provides enterprises with specialized infrastructure and resources only available to them. They benefit from receiving the best results and services possible due to the private cloud's more significant data protection level than the public cloud. The private cloud segment is anticipated to rise due to rising concerns about data security.

Based on Components

The global market is bifurcated into application and solution, infrastructure and protocols, and middleware.

The infrastructure and protocols segment owns the highest market share and is expected to grow at a CAGR of 81.5% during the forecast period. Infrastructure and protocol providers create fundamental software building blocks for a network to run efficiently. One of the main drivers of the market's expansion is the rising need for blockchain standards and protocols, including Openchain, Hyperledger, Ethereum, and BigChainDB. Additionally, protocols assist blockchain application and network developers in creating client-specific, distributed register networks. These elements will propel the infrastructure and protocols segment expansion over the forecast period.

Developers of applications and solutions create programs that work with the current blockchain networks. The segment's expansion is fueled by the providers' capacity to offer crucial value to organizations by limiting transcription data replication and delivering rapid authentication. The growth is due to adoption of blockchain technology as an application and solution platform to foster trust among lenders, owners, investors, and service providers. Additionally, the segment is growing due to the development of highly sophisticated blockchain solutions and substantial expenditures made in the automotive blockchain by Tier I companies and OEMs working with solution providers.

Based on Application

The global market is bifurcated into digital identity, exchanges, payments, smart contracts, supply chain management, and others.

The payments segment is the highest contributor to the market and is expected to grow at a CAGR of 80.9% during the forecast period. Blockchain technology reduces operating expenses, boosts the effectiveness of payment systems, and provides transparency. These advantages increase the technology's application in payment solutions, fueling the segment's expansion. Business demand for smart contracts is also rising due to the ability to lower execution, verification, arbitration, and fraud prevention expenses.

The use of smart contracts over a blockchain network ensures that the contract's terms and conditions cannot be altered. It is difficult for third parties to change or hack the data in contracts, thanks to blockchain technology. As a result, businesses in various industry sectors are implementing blockchain-based smart contracts to cut down on the expenses associated with execution, verification, fraud detection, and arbitration.

Based on enterprise size, the global market is bifurcated into large enterprises and small and medium enterprises.

The small and medium enterprises segment owns the highest market share and is expected to grow at a CAGR of 83.7% during the forecast period. The expansion of the small and medium enterprise category is anticipated to be fueled by an increase in the number of blockchain startups worldwide over the projected period. By eliminating the need for intermediaries in interstate commerce, blockchain technology aids small and medium businesses cut operational costs. Additionally, small and medium-sized businesses can benefit from technology in semi-automatic and manual procedures, including payroll, inventory, and invoicing.

Large businesses in practically every industry, including financial services, insurance, healthcare, supply chains, and trade finance, initially spearheaded blockchain development because they wanted to make their existing key activities more efficient. Large businesses can quickly obtain sufficient funds and various assets to combine more modern, cutting-edge technologies and take the lead in the market. Another element influencing the segment's growth is the significant amount of money invested in R&D to provide the best solution to increase an association's business productivity.

Based on End-User

The global market is bifurcated into financial services, government, healthcare, media and entertainment, retail, transportation and logistics, travel, and others.

The financial services segment is the highest contributor to the market and is expected to grow at a CAGR of 80.4% during the forecast period. Technology has become more well-known in the financial services sector since it aids in protecting customer transactions. It is also anticipated that factors like lower total cost of ownership, quick transactions, the rise of cryptocurrencies, and high interoperability with the financial services industry ecosystem will help the segment flourish over the forecast period.

The leading driving causes behind the expansion of consumer data protection laws in the healthcare industry and the usage of blockchain technology in the pharmaceutical supply chain. Due to the rising number of incidences of data theft and breach, governments all over the world are putting rigid policies in place to secure consumer information. For instance, the "General Data Protection Regulation (GDPR)" of the European Union protects EU residents from privacy and data breaches. Companies worldwide are compelled by such requirements to spend on increasing data security.

Market Size By Type

Recent Developments

  • May 2022- TimesPro and the Indian Institute of Management (IIM) Nagpur launched the inaugural batch of the Post Graduate Certificate Programme in Blockchain Technology to equip learners in developing critical thinking abilities and strong fundaments in blockchain to provide innovative solutions for varied sectors.
  • August 2022- Digital Asset Holdings announced a changing mindset: The new normal for blockchain use cases.

Top Key Players

Deloitte Touche Tohmatsu Limited Digital Asset Holdings LLC Global Arena HoldingInc. IBM Corporation Interbit Microsoft Corporation Oracle Ripple Monax Industries Limited The Linux Foundation Circle Internet Financial Limited Others

Frequently Asked Questions (FAQs)

What is the estimated growth rate (CAGR) of the Blockchain Technology Market?
Blockchain Technology Market size will grow at approx. CAGR of 82.4% during the forecast period.
Some of the top prominent players in Blockchain Technology Market are, Deloitte Touche Tohmatsu Limited, Digital Asset Holdings LLC, Global Arena HoldingInc., IBM Corporation, Interbit, Microsoft Corporation, Oracle, Ripple, Monax Industries, Limited, The Linux Foundation, Circle Internet Financial Limited, etc.
Asia-Pacific has held a dominant position in the Blockchain Technology Market, with the largest market share.
The region with the most rapid expansion in the Blockchain Technology Market is Europe.
The global Blockchain Technology Market report is segmented as follows: By Type, By Components, By Applications, By Enterprise Size, By End-User


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