ID: MRFR/ICT/1176-CR | December 2018 | Region: Global | 123 pages
Market Research Future (MRFR) presumes that the Global Blockchain Technology Market will surge at a CAGR of 66.41% from 2018-2023 (review period). The increasing focus on the decentralization of data ledgers has led to the proliferation of blockchain technology. Technology facilitates the immutability of the activities of the database, making interactions transparent. Blockchain-based applications are gaining quick mileage, covering a range of domains like BFSI, healthcare, and retail. There is an enormous market opportunity for blockchain technology. Blockchain is expected to gain popularity in the coming years due to its innate nature.
The current COVID-19 pandemic is affecting the blockchain industry in the short term. Blockchain will play a key role in driving digital transformation activities and initiatives in the midst of the crisis. Technology can be used for crisis management, public health data surveillance, securing medical supply chains, donation tracking, and others. As claimed by the Organization for Economic Co-operation and Development (OECD), the sector will see a small decline, with technology investment dropping by about 8% in 2020 compared to the previous year. Governments and other business entities are focusing on the deployment of innovative technologies to enhance the customer experience. Such active initiatives are expected to fuel demand for a blockchain solution in the years to come.
Growing demand for digital identity driving blockchain technology market value
Blockchain-based identity platforms have numerous applications in unregulated countries or countries with poor identification systems. Several governments have adopted blockchain technology-based identification platforms at the national level to promote safe and transparent transactions across private and public sectors. For example, Estonia used a blockchain at the national level with its e-citizenship program in June 2018. The country has developed its identity system, ID-Kaarts, to minimize bureaucracy and digitalize all public transactions via secure digital identities.
Rising market capitalization of cryptocurrencies fueling venture capital investment
Cryptocurrencies are based on blockchain technology, marking an innovation in the payment landscape. Cryptocurrencies offer lower transaction fees relative to other payment types, which draw individuals and companies to cross-border payments as they require high transaction fees. This fuels blockchain market growth across the globe. In addition, the decentralized nature of cryptocurrencies does not enable cross-border regulatory authorities to enforce restrictions on transactions. Lower transaction fees, and other factors, are driving market capitalization of cryptocurrencies that draw venture capitalists to invest in blockchain technology startups. For example, in 2017, when the cryptocurrency price jumped by 2.200% in 11 months, funds raised by blockchain startups through ICOs exceeded VC investments in the sector.
Global Blockchain Technology Market has been divided into Service Provider, Organization Sizes, Application, and End-Users.
By service provider, the global blockchain technology market has been divided into application and solution provider, middleware provider, infrastructure & protocol provider.
By organization size, the global blockchain technology market has been divided into large enterprises and small and medium enterprises.
By application, the global blockchain technology market has been divided into payment & transaction, smart contract, digital identity, documentation, exchanges, and others.
By end-users, the global blockchain technology market has been divided into healthcare & life sciences, BFSI, IT & telecommunication, retail, government, travel & hospitality, real estate & construction, and others.
Region-wise, the global blockchain technology market has been segregated into North America, Asia Pacific, Europe, and the rest of the world.
North America to Lead the global market
The North American region dominated the market for blockchain technology in 2018 and was estimated at USD 612.3 million. This can be due to the faster adoption of innovative technologies in developed nations such as the United States and Canada. The growing adoption of blockchain technology among verticals including BFSI, government, retail, among others, for payment and wallet solutions, digital identity detection, and smart contracts is expected to accelerate market growth in the region.
APAC to follow North America
The rising financial sector in emerging countries such as China and India are projected to stimulate Asia Pacific regional growth. The growing use of blockchain technology to manage Know Your Customer (KYC) documents by banks in the region is also expected to fuel market growth in the Asia Pacific region. Moreover, rising government and research institute initiatives in the area to develop blockchain technology are expected to drive market growth in the Asia Pacific region. For example, in June 2018, a Chinese research institute, the Chinese Academy of Sciences (CAS), announced the development of a new laboratory in China. The laboratory is developing to focus on the advancement of blockchain technology, advanced mathematics, and the integration of big data.
The global market for blockchain technology is characterized by the presence of many international, regional, and local vendors. The market is highly competitive, with all players vying for market share. Intense competition, rapid technological advances, and frequent changes in government policies are key factors that confront market development. Vendors compete on the basis of the quality of service, pricing, and reliability. It is important for vendors to offer innovative technologies and value-added services for blockchain technology vendors in order to survive and succeed in an intensely competitive market environment.
Deloitte Touche Tohmatsu Limited, IBM Corporation, Hewlett Packard, Enterprise Company, Accenture PLC, Infosys Limited, Cyber Infrastructure Pvt. Ltd, Solulab Inc., Empirica S.A, Microsoft Corporation, Oracle Corporation, and Amazon Web Services, Inc.
In February 2020, Microsoft incorporated Lition blockchain into Azure so that Microsoft Azure's global enterprise clients can develop, test, and deploy Lition side chains and applications on its platform.
This report predicts revenue growth at global, regional, and country levels and offers an overview of the latest developments in the sector in each of the sub-sectors from 2018 to 2023. For the purpose of this analysis, MRFR has segmented the global blockchain technology market report by service provider, organization size, application, end-use, and region.
By Service Provider
By Organization Size
Frequently Asked Questions (FAQ) :
It is the blockchain-based applications that are gaining traction as it is covering several domains of BFSI, healthcare and retail. These applications are aiding the market with tremendous market opportunities in the future.
The market is set to reach a valuation above USD 7,000 Mn during the forecast period (2018-2023).
The telecommunication sector is increasingly utilizing blockchain mainly for applications such as smart contracts, billing, roaming services and identity as a service and the prime factor for the market’s expansion.
Industrial verticals that are focusing on leveraging blockchain technology are packaging, retail, and banking.
Currently, the North American region is commanding the largest share of the global blockchain technology market.
With technological advancement and wide adoption across industry verticals, the reliability of Blockchain is boosting its credibility due to its use in trusted digital services such as billing, cryptocurrency, digital identification, mobile money, and payments & transactions. Blockchain technology is a growing market as per the analysis of Market Research Future (MRFR). According to the report, the global Blockchain technology market is projected to reach the USD 7,128.0 million mark at a CAGR of 66.4% over the forecast period of 2018-2023.
Global Blockchain technology market has witnessed substantial growth over the last few years due to the demand from various industries, adoption by various organizations, and integration with various kinds of applications.
With the rising adoption of Blockchain for digital identities, payments, and smart contracting, and developments of new business models, the growth of Blockchain as a technology as well as a market is visible. However, difficult integration with existing applications and uncertain regulatory standards can hamper market growth. However, such restraints cannot bring the market growth to a complete standstill.
The global Blockchain technology market has been segmented on the basis of application, end users, organization size, service providers, and lastly region. On the basis of application, the market has been subsegmented into digital identity, documentation, exchanges, payment & transactions, smart contract, and others. Payment & transactions segment is expected to witness the highest growth at 68.90% CAGR during the forecast period.
Based on end users, the market has been segmented into Banking, financial services and insurance (BFSI), government, healthcare & life science, information technology (IT) & telecommunication, real estate & construction, travel & hospitality, and others. Healthcare & life science segment is expected to witness the highest growth at 74.52% CAGR during the forecast period.
With regards to organization size, the market has been segmented into small & medium enterprises and large enterprises. Small & medium enterprises segment is may witness the higher growth at 68.59% CAGR during the forecast period.
As per service providers, the market has been segmented into application & solution provider, infrastructure & protocol provider, and middleware provider. Application & solution provider segment is expected to witness the highest growth at 67.61% CAGR during the forecast period.
The regional segmentation of the Blockchain technology market covers regions such as Europe, Asia Pacific, North America, and the rest of the world (RoW). Europe is the largest regional market. The crucial country-specific markets in this region are Germany, France, Italy, Russia, and the UK. Major factor aiding the market growth in this region is technological advancement. The market growth for Europe is expected to register growth at 70.36% CAGR during the forecast period. Germany is likely to witness the highest growth in Europe at 72.55% CAGR during the forecast period.
North America is the second largest regional market. In 2017, its value was USD 121.7 million. During the forecast period, it may grow at a 65.81% CAGR with the worth of USD 2,504.8 million. USA, Canada, and Mexico are the significant country-specific markets in this region. In this region, online shopping and digital transactions contribute to market growth. The USA is the largest country-specific market in this region which is expected to grow at 67.22% CAGR by the end of forecast period.
Asia Pacific has been anticipated to witness huge growth at 64.30% CAGR due to rapid urbanization, more online shopping, improving internet facilities, increasing digital transactions, and rising technological advancement. The pivotal country-specific markets in this region are China, Hong Kong, India, Japan, and Singapore. China is the fastest growing market in this region, growing at 72.38% CAGR. By the end of forecast period, the market in the country is estimated to be worth USD 362 million.
In the MEA region, the market is limited to due to lack of education, lack of awareness, and limited availability of advanced technology. The biggest individual country-specific market in this region is UAE which is expected to grow at 58.15% CAGR till 2023.
Accenture PLC, Amazon Web Services Inc., Cyber Infrastructure Pvt. Ltd., Deloitte Touche Tohmatsu Limited, Empirica S.A., Hewlett Packard Enterprise Company, IBM Corporation, Infosys Limited, Microsoft Corporation, Oracle Corporation, and SoluLab Inc.
The global blockchain technology market is characterized by the presence of many global, regional, and local vendors. The market is highly competitive with all the players competing to gain market share. Intense competition, rapid advances in technology, and frequent changes in government policies are key factors that confront market growth. The vendors compete based on quality of service, pricing, and reliability. It is crucial for the vendors to provide advanced technology and value-added services for blockchain technology vendors to survive and succeed in an intensely competitive market environment.
The growth of the market vendors is dependent on the market conditions, government support, and industry development. Thus, the vendors should focus on expanding geographically and advancement in digital services. Microsoft Corporation, IBM Corporation, Coinbase, Blockchain Tech LTD, Earthport Plc, BitFury Group Ltd, Ripple Labs Inc, Deloitte Touche Tohmatsu Limited, Abra, Inc, Chain Inc, and Digital Asset Holdings, LLC, are major companies in the market that compete in terms of services offered, pricing of IPN devices, and availability of components from suppliers. These companies primarily focus on the designing crypto-currencies, money transactions, and data integrity & security. Although the global players are dominating the market, regional players with small market shares also have a presence in the market. The global players are expected to strengthen their presence worldwide through organic and inorganic growth during the forecast period.
The vendors with better technical and financial resources can develop innovative product that render the competitors' products, obsolete and non-competitive even before they are launched, or costs are recovered. Therefore, vendors must develop new technologies and stay in touch with emerging technologies that could affect the continuing competitiveness of their product lines in the market.
Microsoft Corporation is a leading provider of software, services, and solutions across the globe. The company mainly operates three segments such as productivity and business processes, intelligent cloud, and more personal computing. The company at present offers “Blockchain as a Service (BaaS)” on Microsoft Azure platform which was initiated to enable enterprise clients and developers to have a single-click cloud-based blockchain developer environment. The company operates in North America and rest of the world.
International Business Machine (IBM) is a leader in providing information technology, innovation, and research & development worldwide. The company operates through various business segments such as cognitive solutions, technology services, business services, global financing services, software services and system hardware. The company has major operations in the US, Japan and the Rest of the World. IBM Corporation primarily aims to increase their business productivity by building partnerships with tech giants and exploring the untapped market as a part of their inorganic growth strategy.
Blockchain Tech Ltd offers solutions that require a minimal IT support, and reduced cost of development. The company provides variety of services such as technical design services, development and hosting services, and support services. BTL Group is primarily focusing on providing free and next-generation blockchain technology platforms for enterprises and end-users.
These companies contributed a major proportion towards market revenue of blockchain technology market.