The global blockchain market is growing at a significant rate during the forecast period (2018-2024). The increasing demand of blockchain software and services is exaggerated towards increasing emphasis of business organizations in safeguarding financial transactions through online medium and evolving trend of the digital economy in various developed as well as developing economies. The technology is used for various financial and non-financial applications like payments, exchanges, smart contracts, documentation, and digital identity.
Insight by Provider
On the basis of provider, the blockchain market is segmented into middleware provider, application and solution provider, and infrastructure and protocols provider. Among these segments, the application and solution provider generates the largest revenue and is expected to witness considerable growth during the forecast period. The market for this segment is growing as the provider avails distributed ledger technique to the various business organization operating in diverse industry domains.
Insight by Application
On the basis of application, the blockchain market is segmented into smart contracts, payments, documentation, supply chain management, exchanges, governance, risk, and compliance management, digital identity, and others. Among all these segments, payment contributes the largest revenue globally and digital identity application is expected to witness fastest growth during the forecast period. The growth of this segment is attributed towards increasing adoption of these techniques by several key players operating in the blockchain market for financial transactions as it helps in reducing the requirement for central administration or mediator.
Insight by Organization Size
On the basis of organization size, the blockchain market is segmented into large enterprises and small and medium enterprises. Among these two segments, small and medium enterprises are expected to witness higher growth during the forecast period. The growth of this segment is attributed towards increasing utilization of these techniques that helps in eliminating wastage of resources and cost, thereby enhancing efficiency and effectiveness in their business operations.
Insight by Vertical
On the basis of vertical, the blockchain market is segmented into government, retail and e-commerce, transportation and logistics, BFSI, media and entertainment, IT and telecommunication, healthcare and life sciences, real estate, travel and hospitality, and others. Among all of these segments, BFSI domain is expected to witness the largest applicability in the blockchain market due to increasingly shifting the trend of business organizations from central infrastructure administration to distributed situation.
Furthermore, BFSI segment is observing the increasing significance of distributed ledger technique that provides secure access to their users. Moreover, distributed ledgers are extensively being utilized by financial authorities to reorganize their internal procedures and reduce operational cost. This domain is further strengthening the growth of blockchain market across the globe.
The increasing and shifting trend that is observed in the growth of the blockchain market includes increasing utilization of the technology amongst several government organizations across the globe. Furthermore, the increasing emphasis of several business enterprises to collaborate this technology with mobile devices are another trend that is expected to accentuate the demand for blockchain market in the near future.
The major factors that are driving the growth of the blockchain industry include increasing adoption of cryptocurrencies from various merchants and business organizations operating in BFSI domain. Furthermore, the increasing demand of cryptocurrency is due to various benefits availed to the users such as immediate clearance and optimal settlement decisions in several financial transactions. Thereby, these factors are bolstering the growth of blockchain market across the globe at a rapid pace.
Lack of awareness regarding the blockchain technique is hindering the growth of the blockchain market, globally. Additionally, high initial set up cost for adherence of full or partial blockchain system in small and medium enterprises in developing economies is expected to further hamper the growth of the blockchain market across the globe.
Globally, blockchain industry players are leveraging market growth through the formulation of several policies and reforms by a government organization in various developed as well as developing economies along with entering into several partnership agreements. The key players in blockchain market are launching new link for various supply chain experts. Furthermore, there are several software development enterprises that are embracing the technique at an extensive rate as it helps them in fighting against fraudulent activities.
Geographically, North America has accounted for the largest share in blockchain market, globally and is predicted to grow significantly during the forecast period. The growth of this market is attributed towards the existence of a large number of organizations having a huge base of operation, adoption of payment and documentation uses in several industries along with widespread execution of smart contracts. Moreover, Asia-Pacific is expected to witness the fastest growth during the forecast period due to huge investment undertaken towards the development of blockchain market that helps in reducing excessive labor cost.
The blockchain market is consolidated structure with the presence of key players such as IBM Corporation, Ripple, Amazon Web Services, Inc., Microsoft Corporation, Abra, Chain Inc., BigchainDB Gmbh, Ethereum Foundation, Earthport PLC, Factom, BTL Group Ltd., Humaniq, Tierion, BlockCypher Inc., AlphaPoint, and Bitfury Group Limited.