"Increasing adoption of Blockchain-as-a-Service, rising cryptocurrency market cap and ICO, simplifying business processes, and creating transparency and immutability are expected to propel the growth of the blockchain market"
The global blockchain market size is expected to grow from USD 411.5 million in 2017 to USD 7,683.7 million by 2022, at a Compound Annual Growth Rate (CAGR) of 79.6%. The demand for distributed ledger technology, reduced total cost of ownership, rising cryptocurrencies market cap and initial coin offerings, increasing demand for simplified business processes, transparency and immutability, faster transactions, and Blockchain-as-a-Service are said to fuel the growth of this market. In addition, rising importance and adoption of blockchain for communication service providers, transformation of international trade and supply chain management, new breed for programmable blockchain platforms, and high adoption of blockchain for payments, smart contracts, and digital identities would create opportunities for the growth of this market. However, uncertain regulatory status and a common set of standards might hinder the overall growth of the market.
Payments application segment is expected to hold the largest market size during the forecast period
The blockchain is a peer-to-peer technology with nodes supporting the ledger and the mining process, and enables connectivity that significantly transforms the payment industry. The integration of the technology provides real-time payments against assets with an immutable state and digital identity, and result in substantial cost savings in the context of reconciliation and settlement for many financial institutions and banks. In addition, blockchain automates the payment processing activities, eliminates the need for intermediaries, and reduce the administrative costs and time for providers and payers. All these factors are expected to be fueling the overall growth of this segment in the blockchain market.
Asia Pacific (APAC) is projected to grow at the highest rate during the forecast period
Blockchain solution providers in the APAC region, design and develop user-friendly, cost-effective, and faster processing cryptocurrency platforms to enhance the application reach of blockchain in multiple industry verticals. Large enterprises and SMEs have been adopting venture funding strategies and are investing in R&D activities in an effort to provide technologically advanced blockchain solutions. In addition, the rapid transformation of the potential countries from semi-transparent to transparent real estate sector has propelled the market growth of blockchain in the APAC region.
In the process of determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews were conducted with key people.
The break-up of the profiles of the primary participants is given below:
- By Company: Tier 1: 55%, Tier 2: 20%, and Tier 3: 25%
- By Designation: C-level: 60%, Director level: 25%, and Others: 15%
- By Region: North America: 10%, Europe: 20%, APAC: 40%, and ROW: 30%
Following are the key vendors profiled in the report:
1. Abra (US)
2. AlphaPoint (US)
3. Amazon Web Services, Inc. (US)
4. Bitfury Group Limited (US)
5. BTL Group Ltd. (Canada)
6. Chain, Inc. (US)
7. Coinbase (US)
8. Digital Asset Holdings LLC. (US)
9. Earthport PLC (UK)
10. Factom (US)
11. International Business Machines Corporation (US)
12. Microsoft Corporation (US)
13. Ripple (US)
The report segments the blockchain market based on provider into application and solution provider, middleware provider and infrastructure and protocol provider. Based on organization size, the market has been segmented into large enterprises and Small and Medium-sized Enterprises (SMEs). Further, under industry verticals, the market includes Banking, Financial Services, and Insurance (BFSI); telecommunication and IT; retail and eCommerce; healthcare and life sciences; government; energy and utilities; media and entertainment; real estate, travel and hospitality, transport and logistics, and others (automotive, energy and utilities, and education). Based on application, the market is segmented into payments, exchanges, smart contracts, documentation, digital identity, supply chain management, governance risk and compliance management, and others. The regions have been segmented into North America, Europe, APAC, Middle East and Africa (MEA), and Latin America.