The Blockchain market size is projected to grow from USD 4.9 billion in 2021 to USD 67.4 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 68.4% during the forecast period. The major driving factors contributing to the high growth rate of blockchain market include increasing venture capital fundings and investment in blockchain technology; extensive use of blockchain solutions in banking and cybersecurity; high adoption of blockchain solutions for payment, smart contracts, and digital identities; and rising government initiatives.
By component, the services segment to register the highest growth rate during the forecast period
Based on component, the global blockchain market is segmented into platform and services. Platform refers to the standalone platform that cannot be further segmented. Blockchain platform in the market enables customers to set up private, public, and consortium-based blockchain environments and provide them with capabilities to develop their own blockchain applications and solutions. These platforms enable people, products, applications, and services to interoperate across the blockchain network, cloud providers, and organizations. The services segment includes various services required to deploy, execute, and maintain blockchain platform in an organization, including technology advisory and consulting, development and integration, and support and maintenance.
The platform segment is expected to witness high adoption during the forecast period as the enterprises are expected to realize the various benefits offered by the technology, including reduced value chain cost, increased security, and faster operations enabling them to gain a leading edge over competitors. The services segment is expected to grow at a higher CAGR during the forecast period. The growth of the services segment would be dependent on the adoption of blockchain platform in the market during the forecast period. Services including technology advisory and consulting, development and integration, and support and maintenance form a critical component of the blockchain solution deployment enabling organizations to effectively utilize blockchain tools and support their core business operations effectively.
By Organisation size, the SME’s to register the highest growth rate during the forecast period
The blockchain market has been segmented by organization size into SMEs and large enterprises. These organizations are categorized based on the number of employees working with them and on global standards. Enterprises of all sizes across the globe are focusing on the blockchain technology to revolutionize the traditional systems in their infrastructure and enhance the customer experience. With the growing need to improve business efficiencies and maintain transparency in the business process, SMEs and large enterprises are focusing on leveraging advanced blockchain solutions for various applications, such as smart contracts, payments, compliance management, supply chain management, and loyalty and rewards management.
Organizations with less than 1,000 employees are categorized as SMEs. SMEs face several disadvantages, including high barriers to entry and lower protection from market conditions. The cost of operation is high due to the requirement of several intermediaries for trading across regions, which limits the growth of SMEs with limited resources. The blockchain technology can prove to be an asset in such scenarios, enabling an enterprise to reduce its cost by eliminating these intermediaries. Another area where SMEs can take advantage of the blockchain technology in their basic day-to-day operations is manual or semi-automatic processes, including invoicing, inventory, and payroll. For instance, smart contracts, a critical capability offered by the blockchain solution can prove to be more economical, helping SMEs streamline their operations cost-effectively and at a faster rate.
Asia Pacific to register the highest growth rate during the forecast period
Asia Pacific (APAC) has witnessed an advanced and dynamic adoption of new technologies and is expected to record the highest CAGR in the blockchain market during the forecast period. The blockchain market in APAC is projected to grow at the highest CAGR during the forecast period.
APAC countries are increasingly investing in Blockchain projects. The region comprises emerging economies, such as China, Japan, Singapore, and rest of APAC. With the increasing technological innovations and the growing presence of a large number of organizations, economies in APAC are witnessing high growth. Presently, the blockchain market is in the nascent phase of exploration and adoption in the region. However, most technology and services providers are looking forward to blockchain technology as a lucrative opportunity. Moreover, growth in the financial sector is expected to complement the adoption of blockchain tools and services. APAC countries are showing growth in cryptocurrency and blockchain technology startups. For example, a company named Bitspark from Hong Kong offers a remittance platform that uses blockchain technology to send and receive payments in emerging markets. The region is analyzing the potential of blockchain technology to explore new opportunities and possible challenges to overcome. Supply chains in APAC are often significantly more difficult to manage as compared to other regions of the world. To reduce these complexities, the adoption of blockchain in the region is increasing. With the rising penetration of the internet and smartphones, eCommerce became a strong driving force for APAC in 2020, which is further necessitating the demand for effective blockchain tools and services in the region for optimizing as well as cost-effectively managing the supply chain.
This is also fueling the need for blockchain solutions and services in the region.
- By Company Type: Tier 1 – 43%, Tier 2 – 36%, and Tier 3 – 21%
- By Designation: C-level – 58%, D-level – 32%, and Others – 10%
- By Region: North America – 32%, Europe – 30%, Asia Pacific – 22%, MEA – 10%, Latin America – 6%
Key and innovative vendors in Blockchain market include IBM (US), AWS (US), SAP (Germany), Intel (US), Oracle (US), Huawei (China), Accenture (Ireland), Wipro (India), Bitfury (Amsterdam), Chain (US), Blockcypher (US), Guardtime (Estonia), Cegeka (Netherlands), Symbiont (US), BigchainDB (Germany), Applied Blockchain (UK), Auxesis Group (India), Spinsys (US), Infosys (India), NTT Data (Japan), Factom (US), R3 (US), Consensys(US), RecordsKeeper(Spain), Stratis (UK), Blockchain Foundry (Canada), Blockpoint (US), Leewayhertz (US), and Dragonchain (US).
The market study covers the blockchain market size across segments. It aims at estimating the market size and the growth potential of this market across different segments by component, by services, by provider, by type, by organization size, by application area, and by regions. The study also includes an in-depth competitive analysis of the key market players, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key Benefits of Buying the Report
The report will help the market leaders/new entrants with information on the revenue numbers’ closest approximations for the overall blockchain market and its sub-segments. This report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies. The report will also help stakeholders understand the market’s pulse and provide them with information on key market drivers, restraints, challenges, and opportunities.