Blockchain Technology Industry Overview
The global blockchain technology market size is expected to reach USD 1,431.54 billion by 2030, growing at a CAGR of 87.7% from 2023 to 2030, according to a new report by Grand View Research, Inc. The market growth can be attributed to the increasing digitalization across the BFSI sector. Furthermore, the growing use of contactless blockchain digital ticketing at various events is expected to drive the market. The growing use of cryptocurrency worldwide is also anticipated to drive market growth. This is because cryptocurrencies, such as Ethereum and bitcoin, operate on blockchain technology. The demand for cryptocurrency is increasing due to benefits, such as easy transactions, inflation hedge, and enhanced security.
According to the statistics provided by TripleA, a cryptocurrency solution provider, more than 300 million people worldwide used or owned cryptocurrency in 2021. The growing demand for blockchain across the government sector due to benefits, such as protection of sensitive data, reduced cost, and improved efficiency is driving the market growth. Various government agencies, such as the Department of Homeland Security (DHS) in the U.S. are demanding blockchain technology-based applications to enhance their data security.
The DHS is funding startups to conduct research and development to explore new approaches to cyber security using blockchain technology. The COVID-19 pandemic is expected to positively impact the market growth over the forecast period. The growing online sales due to the COVID-19 pandemic are expected to create the demand for blockchain technology among e-commerce companies. E-commerce companies use this technology for supply chain management.
Blockchain Technology Market Segmentation
Grand View Research has segmented the global blockchain technology market on the basis of type, component, application, enterprise size, end-use, and region:
Based on the Type Insights, the market is segmented into Public Cloud, Private Cloud, and Hybrid Cloud.
- A public cloud blockchain is a multi-tenant environment where the computing space is shared with several other clients. Various government bodies across the world are integrating conventional systems with cloud technologies in the current days.
- The private cloud segment is also anticipated to have significant growth over the forecast period. Private cloud services include the provision of dedicated infrastructure and resources exclusively for organizations. A private cloud enables companies to reverse the transactions at cost-effective transaction rates.
Based on the Component Insights, the market is segmented into Application Solution, Infrastructure Protocols, and Middleware.
- The infrastructure protocols segment dominated the market in 2022 and accounted for more than 61.0% share of the global revenue. The increasing demand for blockchain standards and protocols, such as Ethereum, Openchain, and Hyperledger, is driving the segment growth.
- The middleware segment is expected to register the second-fastest growth rate over the forecast period. Middleware helps developers build applications more efficiently. A middleware tool is mainly used in the healthcare sector to automate the authentication of clinical data.
Based on the Application Insights, the market is segmented into Digital Identity, Exchanges, Payments, Smart Contracts, Supply Chain Management, and Others.
- Blockchain technology improves payment system efficiency, minimizes operating costs, and offers transparency. These benefits provided by blockchain technology are increasing its use in payment solutions, thus driving the segment growth. Furthermore, blockchain reduces the need for a middleman in payment processing, which is also a major factor driving the segment growth.
- The digital identity segment is anticipated to grow at the fastest CAGR over the forecast period. The companies offering digital identity are entering into partnerships with blockchain technology providers, which is driving the segment growth.
Based on the Enterprise Size, the market is segmented into Large Enterprises, and Small Medium Enterprises.
- The large enterprises segment dominated the market in 2022 and accounted for more than 67.0% share of the global revenue. Large enterprises operating in sectors, such as insurance, financial services, healthcare, and supply chain, are increasingly making efforts to digitalize their offerings, which is creating the demand for blockchain technology among them.
- The Small Medium Enterprise (SME) segment is anticipated to grow at the fastest CAGR over the forecast period. Small medium enterprises face difficulties in scaling their tasks, such as financing, processing payments, and selecting ancillary services essential for global expansion. Blockchain technology helps them reduce issues in the areas of subsidizing and exchanging accounts.
Based on the End-use, the market is segmented into Financial Services, Government, Healthcare, Media Entertainment, Retail, Transportation Logistics, Travel, and Others.
- Blockchain technology provides secured and efficient transactions, and this is driving the demand for the technology in financial services. The technology is expected to be widely adopted in this vertical owing to factors, such as rising cryptocurrencies, high compatibility with the industry ecosystem, rapid transactions, Initial Coin Offerings (ICOs), and reduced total cost of ownership.
- The increasing number of regulations for protecting consumer data is increasing the adoption of blockchain technology in the healthcare sector. Governments across the globe are implementing stringent regulations to protect consumer information owing to the growing incidents of data theft and breach.
Key Companies Market Share Insights
The competitive landscape of the market is highly fragmented in nature. The market players are focused on strategies, such as mergers and acquisitions, to strengthen their market position. For instance, in March 2019, Circle Internet Financial Limited completed the acquisition of SeedInvest, an equity crowdfunding platform. The acquisition was aimed at delivering a token marketplace that would allow individuals and businesses to raise capital and interact with investors through the open crypto infrastructure.
Major players operating in the market include Web3 Foundation (Polkadot), Helium Systems Inc., Ocean Protocol Foundation Ltd., Zel Technologies GmbH (Flux), Kusama, Livepeer, Inc., and Filecoin, and Kadena LLC, among others. These companies are focused on strategies such as partnerships and mergers acquisitions to strengthen their position in the market. For instance, in January 2022, Mphasis, an information and technology company, announced its collaboration with CrossTower, a cryptocurrency exchange solution provider. The collaboration is aimed at creating a Center of Excellence focused on Web 3.0 and blockchain-based products, which will be launched and traded on the CrossTower platform.
- IBM Corp.
- Microsoft Corp.
- The Linux Foundation
- BTL Group Ltd.
- Chain, Inc.
- Circle Internet Financial Ltd.
- Deloitte Touche Tohmatsu Ltd.
- Digital Asset Holdings, LLC
- Global Arena Holding, Inc. (GAHI)
- Monax
- Ripple
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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