ID: MRFR/ICT/1176-CR | February 2020 | Region: Global | 123 pages
According to the expectation of MRFR or Market Research Future, within the review period i.e. from 2018 to 2023, the Blockchain Technology Market will grow at a CAGR of Compound Annual Growth rate of 66.41%.
Blockchain Technology Market COVID-19 Analysis:
The pandemic has caused a huge impact on various industries across the world. Therefore, every industry has to fight the battle with both economic and health issues and had to go through this forced recession. Along with the worldwide financial loss of millions and trillions of dollars, the speedy recovery has become a huge reason for concern.
This COVID-19 pandemic scenario has affected the Blockchain Technology Market Revenue for a short period of time. The Blockchain would take a major role in driving various activities related to digital transformation and also various initiatives during this crisis scenario. According to the Blockchain Technology Market Analysis, this technology can be utilized for the surveillance of public health information, security of the medical supply chains, crisis management, donation of tracking, etc. Also, this Blockchain industry can speedily capture the long-lasting effect that the COVID-19 has caused on numerous industry levels.
According to the Blockchain Technology Market Analysis done by OECD or Organization for Economic Co-operation and Development says that, in comparison to 2019, the Blockchain technology sector will experience a slight 8% decline in technology investment in 2020. Therefore, the various business entities and governments are concentration on the deployment of numerous innovative technologies for enhancing the customer experience. In the coming years, such active initiatives are presumed to fuel the Blockchain Technology Market Demand for various solutions.
Blockchain Technology Market Dynamics:
The rising demand for digital identity has resulted in the expansion of Blockchain Technology Market Size. The various identity platforms based on blockchain technology have numerous applications in both countries that have weak identification procedures and in unregulated countries. At the national level, the adoption of Blockchain Technology Market Demand-based identification platforms has been performed by various governments to promote transparent and secure transactions across the public and private sectors. Various governments have used blockchain technology at a national level with their e-citizen programs since 2018. Therefore, these countries have been able to develop their identity-related procedures and successfully minimized the bureaucracy. Also, this technology has helped them to digitalize all kinds of public transactions via safe digital identities.
In addition, the growing capitalization of market-related cryptocurrencies has fueled the venture of capital investment done by various countries. Depending on the Blockchain Technology Market Size, the cryptocurrencies have marked the innovation in various payment landscapes. Moreover, in comparison with other payment types, these currencies offer a lower amount of transaction fees. Also, as the transaction fees ask for huge money, hence cryptocurrencies draw the companies and individuals to the cross-border payment methods. Also, because of the decentralized property of these cryptocurrencies, the regulatory authorities of the cross-border can’t impose any kind of restrictions on these transactions. Therefore, the low amount of transaction fees and various other factors are promoting the Blockchain Technology Market Revenue and also the capitalization of cryptocurrencies that drives the venture capitalists for investing in the Blockchain Technology Market Share.
In 2017, the price of the cryptocurrency has jumped to 2.200% within only 11 months and as a result, the funds raised by the various Blockchain startups via IOS had surpassed the VC investment in the Blockchain sector.
Since the evolvement of the foremost peer-to-peer decentralized electronic cash, the Blockchain Technology Market Growth has promoted rapidly. Today, various investors from different fields understand the advantages of this technology. From finance to medicine, various sectors are opting for ways to integrate Blockchain technology into their infrastructures. Because of its trustless and decentralized properties, the Blockchain Technology Market Growth can lead to various new opportunities and can benefit the business via enhanced transparency, easier traceability, and greater security.
The only restraint of Blockchain technology is its sophisticated integration procedure. Also, the businesses face a lack of technical team who has expertise in this technology.
Blockchain Technology Market Segment Overview:
According to the Blockchain Technology Market Forecast, this market can be classified based on the application, service provider, organization size, end-users, and region.
The Blockchain technology market is segmented into the following divisions based on the end-users.
The segmentation of the worldwide Blockchain technology market based on the region are:
Blockchain Technology Market Regional Analysis:
According to the Blockchain Technology Market Trends, in 2018, the North American region has dominated this market and it was estimated at approximately USD 612.3 million. The reason behind such growth is the speedier adoption of these innovative Blockchain technologies in most of the developed nations such as Canada and the United States. Also, the rising adoption of this technology among various verticals including retail, BFSI, government for detection of digital identity, wallet and payment solutions, smart contracts, etc. are assumed to enhance the Blockchain Technology Market Share.
Also, the growing economic sector in various developing countries like India and China is assumed to stimulate the regional growth of the Blockchain industry in the Asia Pacific region. The rising utilization of blockchain technology in managing KYC or Know Your Customer documents by the banks in the Asia Pacific region is also assumed to drive the Blockchain market growth in this particular region. Also, increasing initiatives by the research institutes and the government have resulted in the development of this technology. The laboratories are being developed in these countries to concentrate on advanced mathematics, integration of huge data, and the advancement of this technology.
Blockchain Technology Market Competitive Landscape:
According to the worldwide Blockchain Technology Market Trends, this market is characterized by the presence of various local, regional, and international vendors. The market is extremely competitive, with every player opting for greater market share. The rapid advancement of technologies, the frequent change in various governmental policies, intense competition – are the major factors that drive the Blockchain market development. Depending on the reliability, pricing, and quality of the service, the vendors compete. Also, the vendors must offer value-added services and the latest innovative technologies to succeed and survive in this immensely competitive Blockchain market environment.
The Blockchain Technology Market Forecast presumes that at country, regional, and global levels there would be significant revenue growth and also offers an overview, from 2018 to 2023, of the current developments in the Blockchain industry sector and its sub-sector. Also, because of the purpose of the overview analysis, the MRFR has segmented the worldwide report of the technology market by application, provider, end-users, region, and 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 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.
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 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.