Industry Overview
The global blockchain market is projected to reach USD 42.0 billion by 2024, registering a CAGR of 80.0% during the forecast period. Increasing adoption of cryptocurrencies from various merchants and business organizations operating in BFSI domain, propelling the growth of the market.
Market Segmentation
Insight by Provider
On the basis of provider, the global blockchain market is categorized into middleware provider, application & solution provider, and infrastructure & protocols provider, wherein infrastructure & protocols provider category is expected to witness the fastest growth during the forecast period. The growth of this segment is attributed towards increasing demand for the blockchain protocol such as Ethereum, Hyperledger, Openchain, and BigChainDB. In addition, increasing demand for blockchain protocol to develop games such as Spells of Genesis, EtherWarfare, and CryptoKitties is expected to boost the demand for infrastructure & protocol segment during the forecast period.
Insight by Application
Based on 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, however, digital identity application is expected to witness the 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.
Industry Dynamics
Trends
The increasing utilization of the technology amongst several government organizations across the globe and the increasing emphasis of several business enterprises to collaborate this technology with mobile devices are the key trends observed in the blockchain market, globally.
Growth Drivers
Global blockchain market has been driven by several key factors, predominantly increasing adoption of cryptocurrencies from various merchants and business organizations operating in BFSI domain. Moreover, 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.
Restraints
Lack of awareness regarding the blockchain technique is hindering the growth of the blockchain market, globally. Additionally, the 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.
Geography Insight
Geographically, North America has accounted for the largest share in the 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.
Competitive Insight
Some of the key players operating in the global blockchain market are 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.
Forecast Parameters
- Identifying variables and establishing market impact.
- Establishing market trends regionally.
- Analyzing opportunities and market penetration rates by understanding product commercialization, regional expansion.
- Analyzing demand and supply trends and changes in industry dynamics to establish future growth.
- Analyzing sustainability strategies adhered by market participants in an attempt to determine the future course of the market.
- Analyzing historical market trends and super-imposing them on the current and future variables to determine the year-on-year trend.
- Understanding adoption, production, export, import, and regulatory framework.
Data Validation
- Estimated and forecasted data was validated through industry experts.
- Apart from industry experts, data triangulation methods were used for validation.
- Bottom-up and top-down approach has been used for estimation and forecast of market data, whereas top-down approach was used for validation.
- Demand, as well as supply-side surveys, were conducted in order to understand the industry dynamics and data validation.
Primary Research
VynZ Research conducts extensive primary research to understand the market dynamics, validate market data and have key opinions from the industry experts. The key profiles approached within the industry include CEO, CFO, CTO, President, Vice President, Product Managers, Regional Heads, and Others. Also, end-user surveys comprising of consumers are also conducted to understand consumer behavior.
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Source: VynZ Research
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Source: VynZ Research
