Web 3.0 Blockchain Market

Market Overview

The global web 3.0 blockchain market size was valued at USD 1890 million in 2021. It is estimated to reach an expected value of USD 52890 million by 2030 at a CAGR of 44.8% during the forecast period (2022 – 2030).

Web 3.0 is a third-generation or the future generation of internet services and the next stage in the evolution of the web. This revolution will be assisted by increasing and expanding the capabilities of artificial intelligence (AI) and machine learning (ML) and the meteoric advancements in blockchain technology. Because web 3.0 businesses will use decentralized protocols, blockchain technology is crucial to their development. The web 3.0 blockchain technology is currently in the R&D phase and could take a year to launch commercially in the market. The prominent factors driving the growth of the global web 3.0 blockchain market are shifting ownership of data towards the user, increased transparency, and highly secured data security. However, a lack of awareness among end-users is expected to restrict the market growth during the forecasted period. Furthermore, rapid technology innovation is anticipated to create growth opportunities for the global web 3.0 blockchain market.

Market Dynamics

Global Web 3.0 Blockchain Market Drivers

Data Ownership Shifting Towards the User

The three main pillars of web 3.0 blockchain technology are artificial intelligence (AI), machine learning (ML), and blockchain technology. The web 3.0 blockchain focuses on the privacy and security of personal data and allows users to preserve data in decentralized storage. Web 3.0, which enables seamless ownership Transfer, cryptocurrency-based payments, and data transfer, has changed how humans and machines communicate. Blockchain technology for Web 3.0 gives people the freedom to decide which data to share. The consumer owns THEIR data with web 3.0 blockchain technology, not any third-party supplier. Due to this, the user now acknowledges personal data instead of third-party providers. This has aided in the development of blockchain technology. People are turning to web 3.0 blockchains to secure their data and get rid of concerns about security and privacy from third-party suppliers as the idea of data ownership spreads.

Increased Transparencies

 Blockchain technology for web 3.0 is decentralized. As a result, all transactions are thoroughly documented and transparent. Blockchain uses information traceability techniques to guarantee users that their data is not tampered with or altered. Blockchain technology for Web 3.0 improves the payment system's transparency by making every transaction irreversible and recordable, which is advantageous for users during audits.

Web 3.0 blockchain technology's ability to record transactions is crucial in internet monitoring and censorship. People can also monitor government-related transactions that make use of their data. Since these methods are quite clear, they have been increasingly used in recent years by significant industries. By enhancing accountability, this technology has contributed to developing a transparent and responsible digital economy. The demand for web 3.0 blockchain technology will be significantly influenced by the increased transparency of the web 3.0 blockchain during the anticipated time.

Global Web 3.0 Blockchain Market Restraint

Lack of Awareness

 The web 3.0 blockchain Technology offers additional benefits than previous versions, but the lack of awareness about the usage and application of These technologies is restricting its growth. In recent years, tech giants such as Google, Facebook, Microsoft, and Amazon have seen rising criticism regarding customer data usage, aggressive business practices, and unethical AI use. This has shifted people's focus to web 3.0, considered more secure, but lack of knowledge about its usage limited the growth. Users are not aware of the application of the web 3.0 blockchain apart from its use in cryptocurrency. Similarly, web 3.0 blockchain technology is still evolving, and many significant issues must be tackled before fully implementing the technology. The higher dependency on Web 2.0 amongst end-users is expected to continue in the forecasted period due to a lack of awareness of Web 3.0 blockchain Technology, restricting the growth of the web 3.0 blockchain in coming years.

Global Web 3.0 Blockchain Market Opportunities

Rapid Innovation in Technology

 Blockchain is a technology that is advancing quickly in Web 3.0. The end user gains significant advantages from IT, including lower operational costs, increased speed, a lesser risk of cyberattack, and personal data control. Significant technological advancements have occurred recently, including the use of blockchain technology in logistics and operations and the connection of blockchain with the Internet of Things. Major R&D is being done to increase the technology's scalability so that it may be used to its fullest potential in sectors including browsing, social media, messaging, and data storage. Web 3.0 technology has recently contributed to the growth of NFT payment systems and digital collectibles. Additional technology uses include 3D graphics and spatial web design, among others. This technology's further development will affect many industry sectors and open up enormous growth potential.

Regional Analysis

Based on region, the global web 3.0 blockchain market is segmented into North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.

 North America dominated the market and is estimated to grow at a CAGR of 41.2% during the forecast period. North America is likely to lead blockchain adoption in the global scenario. By cryptocurrency volume transferred on-chain, North America is the third most active area, trailing only Northern and Western Europe (NWE) and far behind east Asia. North America accounted for an estimated 14.8 percent of all cryptocurrency activity. North America, like east Asia, has a thriving professional market; however, its Bitcoin investing Techniques appear to be somewhat different from those in east Asia. Organizations in the region are increasingly adopting blockchain technology, propelling regional market expansion. Many formerly hesitant leaders are beginning to understand blockchain's long-term potential, indicating that it is entering a new phase of broader, more practical acceptance. Blockchain initiatives are being expanded and diversified by increasing enterprises across a broader range of industries. Leaders across a wide range of industries in North America are well aware of blockchain's disruptive potential, but each sector is figuring out how to best use the technology. Payment and wallet solutions, smart contracts, and digital identity detection solutions are being implemented in industries like government, retail, and BFSI, necessitating blockchain technology. In addition, the presence of many companies in the region boosts the regional market growth.

 Europe is the second largest region. It is estimated to reach an expected USD 24240 million by 2030 at a CAGR of 50.5%. Given its wide range of uses, blockchain can be one of the most disruptive technologies in Europe and the world economy. And its services have grown far beyond cryptocurrencies, which were the first to bring the blockchain into the public eye a decade ago. Blockchain technology is still in its infancy and faces challenges such as performance, energy efficiency, digital asset regulation, integration with legacy infrastructure, and interoperability amongst blockchains. However, some of these obstacles can be mitigated, and substantial tailwinds for quick adoption can be created by the governmental and private sector initiatives developed throughout Europe. The European Commission (EC) intends to leverage blockchain technology to construct a pan-European public services blockchain, create a legal and regulatory framework for blockchain-based applications, and support substantial research and development projects. Firms are eager to enter the blockchain space to raise investment, aided by supportive legislative frameworks and a booming blockchain infrastructure and services market. These and other elements are important milestones towards the incorporation of blockchain technology in Europe. cross-border payments and settlements and regulatory compliance account for over a third of Europe's blockchain spending. To this point, the cryptocurrency sector has accounted for most of Europe's blockchain market growth.

 Asia Pacific is the third largest region. The Asia-Pacific region includes China, Japan, India, and the rest of Asia-Pacific. This region is one of the leading in cryptocurrency activity compared to the other regions studied. With the growing retail activities across Central and Southern Asian countries, cryptocurrency has increased, possibly for everyday transactions, particularly in India, Vietnam, Indonesia, and Thailand. Furthermore, the Eastern Asia region has also contributed to a large share owing To the rising mining activities. Most newly-minted Bitcoin emerges in the Asia-Pacific region, enabling the Web 3.0 blockchain market to expand.

Segmental Analysis

The global web 3.0 blockchain market has been segmented based on blockchain type, application, vertical, and region. 

Based on blockchain type, the global market is segmented into public, private, consortium, and hybrid. The public segment accounted for the largest market share and is estimated to grow at a CAGR of 41.2% during the forecast period. A public blockchain is accessible to the general public, and anyone can join without special permission. Anyone who enters the network can read, write, and participate in this network, which no one controls. Public blockchains are decentralized and immutable. After an entry has been validated, no one can edit it, and users can rest assured that their transactions will not be changed or destroyed. Bitcoin, Litecoin, and Ethereum are examples of cryptocurrencies that use public blockchains and receive the most attention. On the other hand, governments can utilize them as a voting platform or track medical records. Anonymity and openness are fundamental elements of these systems. The public blockchain is primarily a business-to-consumer solution. All such factors drive the segment growth.

Based on application, the global market is segmented into cryptocurrency, conversational AI, data & transaction storage, payments, smart contracts, and others. The payments segment accounted for the largest market share and is estimated to grow at a CAGR of 40.1% during the forecast period. Blockchain technology offers fast, secure, low-cost international payment processing services. These transactions use encrypted distributed ledgers that allow trusted real-time verification of transactions without the requirement of intermediaries such as clearinghouses and correspondent banks.

The private segment is the second largest. Private blockchains are only accessible by invitation, and anyone wishing to use it must first obtain authorization from the blockchain's governing body. They provide various access levels, allowing users to create, view, and audit the blockchain. Organizations in This situation use distributed ledger technology but do not make their data public. Only the owners can change the entry because private blockchains lack the same level of decentralized security as public blockchains. Each user on a private blockchain must have a validated identity, which determines the level of access. These are common corporate solutions that enable the management of resources and actions taken by everyone. They allow for speedier transactions and use less energy to maintain. A private blockchain is a go-to option for corporate and business-to-business applications, managing supplier-vendor relationships, or creating a shared infrastructure across businesses. All such benefits drive segment growth. 

By vertical, the global market is segmented into BFSI, e-commerce & retail, media & entertainment, healthcare & pharmaceuticals, IT & telecom, and others. The BFSI segment accounted for the largest market share and is estimated to grow at a CAGR of 45.1% during the forecast period. The BFSI sector uses blockchain technology for various applications to transform how people exchange values. Blockchain technology records the Transaction as blocks and then chains them together to form complete transaction records. in the bfsi sector, with the help of this technology, the transaction records cannot be altered or modified once they have been added to the ledger.

The media & entertainment segment is the second largest. The Ethereum platform allows THE media & entertainment sector to achieve benefits such as disintermediated content from industry intermediaries, reducing IP infringement, and direct monetization of all copywritten assets Through P2P micropayments and smart contracts. This technology can allow efficient micropayment pricing models and log a detailed record of media usage.

Recent Developments

 October 2022 - Following receipt of its Category 4 license as a Crypto Asset Service Provider (CASP) in May 2022, Binance launched its Bahrain platform – Binance.bh a fully regulated platform by the Central Bank of Bahrain, where Bahrain users can access Binance's full range of crypto-asset exchange services, including direct deposits and withdrawals in local currencies.

October 2022 - Binance has added BETH and POLYX as new collateral assets on the Binance Loans platform.

 October 2022 - Ocean Protocol, the Web3 platform to unlock data services for AI and business innovation, launches the Energy Efficiency data challenge - the latest initiative under its broader Ocean Data Challenge program to incentivize data analysis and algorithms for solving complex business problems