ID: MRFR/ICT/6470-HCR | February 2021 | Region: Global | 111 pages
The global market for blockchain-as-a-service (BaaS) is estimated to reach USD 18,981.66 Million by 2024, growing at a 70.63% CAGR during the forecast period 2018–2024. The growing adoption of blockchain-as-a-service solutions by banking, financial service and insurance enterprises, retail & e-commerce organizations and government entities are a major driver of market growth. Rising demand to implement BaaS solutions for supply chain management across various industry verticals also promotes market growth. Moreover, utilizing BaaS solutions for secure and reliable international business transactions is expected to be a key factor to drive market growth in the coming years.
Blockchain is an emerging technology that maintains a decentralized database of historical records by the formation of continuous blocks in a chain. It is an open ledger that efficiently stores and manages transactions made between two entities. Blockchain technology is increasingly being adopted in various industries and applications considering owing to its secure transaction process. For instance, blockchain in telecommunication is used for billing, smart contracts, roaming services, and identity as a service. Organizations such as Oracle Corporation, Microsoft Corporation, and IBM Corporation are already offering blockchain-as-a-service (BaaS) as a part of their portfolio offerings, promoting market growth. In June 2017, BankChain, a platform for banks in India, planned to explore, develop, and execute blockchain solutions, selecting Microsoft Azure platform as its exclusive cloud partner. The BankChain members include State Bank of India (SBI), ICICI Bank, DCB Bank, Kotak Bank, Bank of Baroda, and Deutsche Bank among others that have implemented Microsoft Azure for blockchain.
Blockchain-as-a-Service (BaaS) platform allows users to leverage cloud-based solutions to build, host, and use blockchain applications, smart contracts, and various functions on the blockchain. The external cloud-based service provider is responsible for managing vital tasks and activities, keeping the blockchain technology and infrastructure agile and operational. Further, the BaaS provider also manages activities such as bandwidth management, resource allocation, hosting requirements, and security. By adopting the BaaS model, enterprises can focus on their core business operations by outsourcing infrastructure to the cloud-based service provider. BaaS is gaining significant attention owing to its capability to resolve complex issues around transparency, efficiency, and cost. BaaS is widely used in the retail industry for supply chain management and smart packaging and records information regarding the product condition and its location on a device using blockchain technology. Additionally, the BaaS can exempt traders from heavy checks of counterparties and optimize the entire lifecycle of a trade.
Using blockchain technology, companies can enhance trade accuracy, speed up the settlement process, and reduce risks. In October 2018, Oracle Corporation, one of the leading blockchain service providers, launched Oracle blockchain applications cloud suite which included Oracle blockchain cloud service to improve the traceability, visibility, and transparency across multi-tier supply chains, product delivery, and contract execution in enterprises. Some organizations that have adopted Oracle blockchain cloud service include Arab Jordan Investment Bank, CargoSmart Ltd, Certified Origins Inc., Indian Oil Corporation Limited, Intelipost, Neurosoft, Nigeria Customs, Sofbang LLC, and Solar Site Design. The financial service sector has witnessed the highest rate of testing and adoption of blockchain technology which is driving the market growth. Within the financial sector, BaaS is used for regulatory compliance and cross-border payments & settlements.
However, procuring skilled expertise capable of understanding blockchain technology, interoperability among various blockchains, lack of regulatory standards, and high costs associated with its integration with legacy systems are some roadblocks that may restrict the market growth in the coming years.
By platform, the market has been segmented into, Ripple, Ethereum, R3, Hyperledger, and others.
By component, the market has been segmented into tools and services
By cloud, the market has been segmented into private, public and hybrid
By organization size, the market has been segmented into Large enterprises and SMEs.
By application, the market has been segmented into compliance management, smart contracts, supply chain management, identity management, payment management, inventory management, loyalty and rewards management, fraud management and others.
By vertical, the market has been segmented into BFSI, IT & telecommunications, retail and e-commerce, healthcare, transportation & logistics, government, energy & utilities, media & entertainment, and others.
MRFR recognizes the key players in the global blockchain-as-a-service market as – IBM Corporation, Microsoft Corporation, SAP SE, Amazon Web Services, Oracle Corporation, Accenture PLC, Deloitte Touche Tohmatsu Limited, Cognizant, Infosys Limited, Capgemini SE, NTT Data Corporation, Huawei Technologies Co. Ltd, HPE, Baidu, Inc., Tata Consultancy Services Limited, KPMG, and Wipro Limited.
The prominent players keep innovating and investing in research and development to present a cost-effective product portfolio. There has been recent mergers and acquisitions among the key players, a strategy the business entities leverage to strengthen their reach to the customers.
Global Blockchain-as-a-Service Market, 2018–2024 (USD Million)
Source: MRFR Website
The market for global Blockchain-as-a-Service is estimated to grow at a significant rate during the forecast period from 2018 to 2024. The geographical analysis of Blockchain-as-a-Service market has been studied for North America (the US, Canada, Mexico), Europe (the UK, Germany, France, Spain, Italy, the rest of Europe), Asia-Pacific (China, Japan, India, Singapore, Australia, the rest of Asia-Pacific) and the rest of the world (the Middle East and Africa and South America).
At present, North America holds the largest market share being an early adopter of blockchain technology in the US, Canada, and Mexico. The BFSI vertical is responsible for leading the demand for blockchain-as-a-service solutions in the region which generates the highest revenue in the market. Moreover, the presence of key market players such as IBM Corporation, Microsoft Corporation, Amazon Web Services, and HPE promotes market growth in this region.
Europe accounted for the second-largest market share due to rising adoption of blockchain-as-a-service solutions in countries such as the UK, Germany, France, Spain, Italy, and Sweden. Additionally, the European region is expected to witness a surge in the adoption of blockchain technology in the coming years with strong support from the governments in various European countries.
Asia-Pacific region accounted for the third-largest market share and is expected to attain the highest growth due to the adoption of blockchain-as-a-service solutions in China, Japan, India, Australia, Singapore, South Korea, and other Asian countries. The BFSI and retail industry in the Asia-Pacific region is expected to generate the highest revenue for the market in the coming years.
South America and the Middle East & Africa region is expected to achieve a substantial growth with growing investments by key players to offer BaaS solutions to the government and education sector in this region. The market has immense growth opportunities in countries such as the UAE, Saudi Arabia, Oman, South Africa, Nigeria, Brazil, Colombia, and Chile.
Frequently Asked Questions (FAQ) :
The market expansion is set to occur at a rate of 70.63% in the ensuing years.
The market is estimated to reach a valuation of USD 18,981.66 Million by 2024.
The renowned companies in the market are Tata Consultancy Services Limited, SAP SE, Amazon Web Services, Capgemini SE, IBM Corporation, Infosys Limited, Accenture PLC, KPMG, Huawei Technologies Co. Ltd, HPE, Microsoft Corporation, Cognizant, Wipro Limited, Baidu, Inc., NTT Data Corporation, Deloitte Touche Tohmatsu Limited, Oracle Corporation, and others.
The top applications covered in the report are inventory management, identity management, fraud management, payment management, loyalty and rewards management, compliance management, supply chain management, smart contracts, and others.
The prominent companies are innovating their products and also making substantial investments in research and development. They are also indulging in mergers and acquisitions in order to gain a better position in the market.