Ottawa – Due to the COVID-19 pandemic, reliance on online businesses has increased dramatically. healthcare and life sciences, manufacturing, transportation and logistics, and retail, among others, are leveraging the internet to provide needed services to consumers. Vendors have noticed a growing demand for the blockchain technology market. With rising COVID-19 spread, many governments asked public and private companies to adopt new telecommunications practices and social distancing. Since then, digital ways of doing business and using email with a home server have become the new plan for various organizations. With the growing use of mobile and the penetration of internet, individuals are gradually attracted and prompted to use Blockchain. These changing trends and the distributed computing environment have made organizations vulnerable to privacy issues, driving the demand for blockchain solutions.

Key Takeaways:

  • By type, the public cloud segment has accounted 61% market share in 2021.
  • By components, the infrastructure & protocols segment has held 63% market share in 2021.
  • By applications, the payments segment has held 45% market share in 2021.
  • By enterprise size, the large enterprises segment has held 68.5% market share in 2021.
  • By end use, the financial services segment has held 39% revenue share in 2021.
  • The North America region has held 38% market share in 2021.

Regional snapshots

North America is estimated to have the highest share in the blockchain market. The early adoption of Blockchain and the presence of several Blockchain and security solution providers are expected to drive the market growth in the region. Companies in this region are increasingly deploying security and management solutions to enable data privacy, prevent cyberattacks, and ensure privacy and security data to facilitate business continuity.

North America is expected to hold the largest share of the global blockchain technology market during the forecast period. The market expansion is expected to be driven by the implementation of blockchain technology and the existence of many manufacturers offering blockchain and secure solutions. Businesses in the region are taking steps to use blockchain and security solutions to drive business continuity by enabling data protection, preventing cyberattacks and economic hacks, and securing protect the security and privacy of data.

Report Highlights

  • The retail and e-commerce segment is expected to witness the fastest growth in the Blockchain market during the forecast period. Retail and e-Commerce Scope is an interconnected global network of suppliers, retailers, e-commerce portals and customers interacting in physical stores, as well as digital channels. Today, all retail and e-commerce organizations are making huge investments to deliver enhanced customer experiences to their customers.
  • Blockchain technology is gradually improving the customer experience. With a positive customer experience, retail and e-commerce businesses should build customer loyalty. Blockchain technology allows retailers to use smart contracts to resolve any customer-related dispute without any court intervention.
  • Smart contracts are stored in a digital ledger, allowing customers to record all transactions. Transactions are public and cannot be modified or tampered with. All parties to the transaction are responsible for their contractual obligations and the actions taken will be automated if the conditions are not met.
  • On the basis of type, the global market has been segmented into private cloud, public cloud, and hybrid cloud. The public cloud segment dominates the market and accounts for more than half of global revenue.
  • The public cloud blockchain is a multi-tenant environment where computing space is shared with many other customers. Various government agencies around the world are now integrating conventional systems with cloud technology. Demand for the public cloud is high because it provides cost competitiveness for businesses.

Scope of the Report

Report Attributes Details
Market Size in 2021 USD 5.7 Billion
Revenue Forecast by 2030 USD 1593.8 Billion
North America Market Share 38% in 2021
CAGR 87.1% from 2022 to 2030
Base Year 2021
Forecast Year 2022 to 2030
Key Players IBM Corp. (U.S.), Microsoft Corp. (U.S.), The Linux Foundation (U.S.), BTL Group Ltd. (U.K.), Chain, Inc. (U.S.), Circle Internet Financial Ltd., (U.S.), Deloitte Touche Tohmatsu Ltd. (U.K.), Digital Asset Holdings, LLC (U.S.), Global Arena Holding, Inc. (U.S.), Monax (U.S.), Ripple (U.S.)

Market dynamics

Drivers

Venture capital investment in blockchain technology tripled in 2018. 2018 was an important year for the blockchain, with new projects regularly launched by startups and by major players in the blockchain market across multiple industries. The interests of venture capitalists and capital investments are already at their peak, which has also led to the formation of separate blockchain venture capital firms such as Boost VC and Node Capital.

Restraints

Distributed ledger technology is still in its infancy, which raises questions for regulators and policymakers, both nationally and internationally. Regulators are doubtful about the extent of IoT blockchain because the global technology cannot be regulated; only technology use cases, such as payments, smart contracts, documents and digital identities, can be regulated. Due to issues such as interoperability, the status about regulating blockchain systems is uncertain. Also, due to the uncertain regulations, the blockchain technology market is hit hard.

Opportunities

Blockchain technology can achieve potential opportunities in various application areas, such as cybersecurity, banking, and IoT. Widespread use of IoT devices is seen in several application areas, such as smart city projects, smart transportation, connected vehicles and autonomous vehicles, smart networks and smart home. IoT devices are growing at scale and different companies are innovating new use cases of the technology adapting IoT devices. Several companies are implementing blockchain solutions to create a strong network of IoT devices, which will write off the need for a central location to manage communication between devices. Blockchain technology will allow devices to communicate directly with each other, reducing the need for any other monitoring systems.

Challenges

The increasing digital transformation of industries has given rise to many cyber threats and attacks. However, organizations face a lack of qualified professionals to remedy the situation of risk factors. As a result, the adoption of advanced technology solutions is slow and is expected to affect the growth of the market in the next few years. In addition, developing countries, such as India, Mexico, Peru, and others, face a lack of awareness of the risks associated with data protection. As a result, technology adoption is expected to stagnate for a few years.

Recent developments

  • In April 2021 – Oracle launched Enterprise distributed ledger technology for healthcare, supply chain, financial services, and other sectors. The company deployed various solutions to fight against COVID-19.
  • In April 2021 – Trames and IMDA signed an agreement to speed up the digitalization of supply chain and global trade. The agreement is expected to promote the adoption of a digital solution by Trames.

Market Segmentation

By Type

  • Public Cloud
  • Private Cloud
  • Hybrid Cloud

By Component

  • Application & Solution
  • Middleware
  • Infrastructure & Protocols

BY Application

  • Digital Identity
  • Payments
  • Exchanges
  • Supply Chain Management
  • Smart Contracts
  • Others

By Enterprise 

  • Large Enterprises
  • Small & Medium Enterprises

By End-Use 

  • Financial Services
  • Healthcare
  • Government
  • Media & Entertainment
  • Transportation & Logistics
  • Retail
  • Travel
  • Others

By Geography

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa (MEA)

Source: Precedence Research