Blockchain Technology Market Growth & Trends
The global blockchain technology market size is expected to reach USD 394.60 billion by 2028, according to a new report by Grand View Research, Inc. It is projected to expand at a CAGR of 82.4% from 2021 to 2028. The growth can be attributed to the increasing number of merchants accepting cryptocurrency. At the same time, the growing interest of financial institutes in blockchain technology is also driving market growth.
High investments in blockchain by leading banks and other financial institutions have led to various advancements in technology, thereby improving efficiency. The technology is anticipated to shape the banking sector by bringing a new age of efficiency. Other factors contributing to the high adoption of the technology include eradication of the need for authenticating transaction processes, reduction of error rates, elimination of reconciliation, and facilitation of faster settlement.
Retail stores are increasingly adopting blockchain technology for seamlessly handling business relations and supply chains. For instance, in October 2019, Walmart started piloting blockchain technology to track shrimp exports from Indian farmers to an overseas retailer. This shrimp supply chain, backed by blockchain technology helped in improving the quality of products for compliance purposes.
The COVID-19 pandemic is anticipated to impact market growth favorably in the near future. Various industries used blockchain technology for improving the supply chain during the COVID-19 pandemic as blockchain technology has the capability of overcoming the challenges faced by the traditional supply chain, such as inefficiency and high cost.
Blockchain Technology Market Report Highlights
- In terms of type, the public cloud segment is expected to retain its dominance over the forecast period. The growing government tendency to inculcate efficient and open transactions is driving the segment growth
- In terms of components, the infrastructure and protocol segment dominated the market in 2020 and is expected to witness growth over the forecast period. The growing demand for blockchain protocols such as Hyperledger and Openchain is driving the segment growth
- In terms of application, the payment segment dominated the market in 2020. The capability of blockchain technology to provide transparency in transactions is driving the segment growth
- In terms of enterprise size, the large enterprise segment dominated the market in 2020. The rapid adoption of blockchain technology by large enterprises to enable digital services across different business channels is driving the segment growth
- In terms of end use, the financial services segment dominated the market in 2020. The increasing investment in blockchain technology by finance service providers is driving the segment growth
- The increasing adoption of blockchain technology in emerging economies such as China and India is expected to create growth opportunities for the market players in the Asia Pacific region over the forecast period