Dublin – This report describes and explains blockchain in the banking and financial services market and covers 2016-2021, termed the historic period, and 2021-2026 termed the forecast period, along with further forecasts for the period 2026-2031. The report evaluates the market across each region and for the major economies within each region.

The global blockchain in the banking and financial services market reached a value of nearly $2,034.1 million in 2021, having increased at a compound annual growth rate (CAGR) of 62.7% since 2016. The market is expected to grow from $2,034.1 million in 2021 to $17,583.4 million in 2026 at a rate of 53.9%. The market is then expected to grow at a CAGR of 27.9% from 2026 and reach $60,270.6 million in 2031.

Growth in the historic period resulted from the increasing demand for fast and real-time fund transfers, the rising use of digital banking services, strong economic growth in emerging markets, and increased government initiatives. Factors that negatively affected growth in the historic period were rising cybercrime risk, and the skills shortage.

Going forward, the rise in adoption of blockchain technology in the banking sector, rising use of cryptocurrency, and the increased use of blockchain to reduce fraudulent transactions will drive market growth. Factors that could hinder the growth of blockchain in the banking and financial services market in the future include blockchain scalability and data localization.

Blockchain in the banking and financial services market is segmented by type into public blockchain, private blockchain and others. The public blockchain market was the largest segment of the blockchain in the banking and financial services market by type, accounting for 62.0% of the total market in 2021. The public blockchain market is expected to be the fastest-growing segment in blockchain in the banking and financial services market type, going forward at a CAGR of 55.6% during the 2021-2026 period.

Blockchain in the banking and financial services market is segmented by application into fund transaction management, real time loan funding, liquidity management and others. The fund transaction management market was the largest segment of the blockchain in the banking and financial services market by application accounting for 53.5% of the total market in 2021. The fund transaction management market is expected to be the fastest-growing segment in blockchain in the banking and financial services market by application, going forward at a CAGR of 58.1% during the 2021-2026 period.

North America was the largest region in blockchain in the banking and financial services market, accounting for 37.5% the global market in 2021. It was followed by Western Europe, Asia-Pacific and the other regions. Going forward, the fastest growing regions in blockchain in the banking and financial services market will be South America and the Middle East, where growth will be at CAGRs of 71.5% and 67.1% respectively from 2021-2026.

The global blockchain in the banking and financial services market is moderately fragmented, with a large number of regional players operating in the market. The top ten competitors in the market made up to 53.35% of the total market in 2021. Major players in the market include SAP SE, Amazon Web Services, IBM, Accenture plc, Oracle Corporation, ConsenSys, Hewlett Packard Enterprise, Bitfury Group Limited, Infosys, and Auxesis Services & Technologies (P) Ltd.

The top opportunities in the blockchain in the banking and financial services market segmented by type will arise in the public blockchain market, which will gain $10,245.8 million of global annual sales by 2026. The top opportunities in the blockchain in the banking and financial services market segmented by application will arise in the fund transaction management market, which will gain $9,678.1 million of global annual sales by 2026. The blockchain in the banking and financial services market will gain the most in the USA at $6,209.2 million.

Market-trend-based strategies for the blockchain in the banking and financial services market include focus on blockchain technology for insurance, focus on blockchain integration into asset servicing, focus on strategic mergers and acquisitions and focus on digital currencies.

Player-adopted strategies in the blockchain in the banking and financial services market include expanding product portfolio with new and advanced technology by new product launches, focusing on driving a new wave of digital transformation through the funding of projects and focusing on expanding business presence through strategic collaborations.

Markets Covered:

  • 1) By Type: Public Blockchain; Private Blockchain; Others
  • 2) By Application: Fund Transaction Management; Real Time Loan Funding; Liquidity Management; Others

Companies Mentioned

  • SAP SE
  • Amazon Web Services
  • IBM
  • Accenture plc
  • Oracle Corporation

Source: Research and Markets