Blockchain Technology Market Share, Growth & Forecast [2031]

Report Description

The blockchain technology market size was valued at USD 18 Bn in 2022 and is likely to reach USD 5467 Bn by 2031, expanding at a CAGR of 87.8% during the forecast period, 2023-2031. The growth of the market is attributed to increased venture capital investing in blockchain technology startups.

A blockchain is a collection of information-containing blocks linked together in a chain. The information held within a block is determined by the blockchain type. The objective of this model is to timestamp digital content so that they can't be backdated or tempered.

Get Free Sample Report

The intention of blockchain is to reduce the requirement for a centralized server in order to address the problem of duplicate records. The blockchain is used to safely transfer the funds such as property, money, and contracts even without a third-party middleman such as a government or bank. It is extremely impossible to alter data after it is been stored in a blockchain.

Moreover, blockchain cannot run without internet. The growing interest in the blockchain ecosystem is assisting in the adoption of blockchain across enterprises in an indirect manner. Furthermore, it is built on and functions similarly to the Software as a Service (SaaS) model.

Individuals and corporations both are becoming more open to adopting blockchain technology. For instance, 

• In May 2021, Circle Internet Financial Ltd., a blockchain technology company, said that it had raised USD 439 million in fundraising from institutional and strategic investors. This money was used for organizational growth and market expansion by the company.

Legalization of cryptocurrency in several countries has encouraged investors and businesses to invest in blockchain technology. It also motivates market participants to improve their services in order to achieve a competitive advantage.

Blockchain technology is projected to become more efficient and effective in the near future as a result of the companies' efforts. DeFi is a blockchain-based emerging financial system that limits banks' control over financial services and money.

Blockchain Technology Market Trends, Drivers, Restraints, and Opportunities

• The legalization of bitcoin stimulates further investment in blockchain technology by businesses and investors, which is projected to drive the market.

• Expanding strategic initiatives in the decentralized financial domain is expected to fuel the market during forecast period.

• Companies such as PayPal and Xbox accepting cryptocurrencies as a payment method, this is projected to increase the demand for blockchain during the projected period.

• Several restaurants have formed relationships with bitcoin solution providers in order to provide their customers cryptocurrency-based payments, which is driving the market.

• Several organizations are attempting to integrate Artificial Intelligence (AI) skills with blockchain in order to improve their products, resulting in new market potential, which is anticipated to boost the market.

• Legalization of cryptocurrencies in nations like Ukraine and El Salvador is estimated to create immense growth opportunities for the market players.

• Technical difficulties and operational overhead involved in developing, setting, and operating blockchains, as well as maintaining their infrastructure are estimated to hamper the market growth.

Scope of Blockchain Technology Market Report

The report on the global blockchain technology market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Blockchain Technology Market Segment Insights

Components Segment Analysis

Based on components, the market is segregated into middleware, infrastructure & protocols, and application & solution. The infrastructure & protocols segment accounted for around 61% of the total market share in 2021.

The growing need for blockchain standards and protocols like Hyperledger, Openchain, and Ethereum, is propelling the market. Protocols are in high demand because they allow users to securely and reliably communicate information across bitcoin networks. As a result, the advantages provided by infrastructure and protocols are assisting in the segment's expansion.

Applications Segment Analysis

On the basis of applications, the market is fragmented into supply chain management, digital identity, smart contracts, exchanges, and payments. The digital identity segment is estimated to expand at a high CAGR during the forecast period. Companies that provide digital identification are forming alliances with blockchain technology suppliers, which is propelling the market.

For instance, Ontology, an enterprise blockchain platform, and Spherity GmbH, a digital identification company, announced their alliance in May 2020. The blockchain technology of the previous company was merged with Spherity GmbH's Cloud-Edge Identity Wallet as a result of this collaboration.

Get Free Sample Report

Types Segment Analysis

In terms of types, the market is divided into public cloud, hybrid cloud, and private cloud. The public cloud segment held more than 60% of the total share and dominated the market in 2021. A public cloud blockchain is a multi-tenant system in which computing resources are shared among multiple clients.

Various government agencies around the world are currently combining traditional systems with cloud technologies. The demand for public cloud is significant because it allows businesses to compete on price.

The private cloud segment is projected to grow at a significant rate during the forecast period. Organizations can use private cloud services to get dedicated infrastructure and resources. Companies can reverse transactions at low transaction costs using a private cloud. This is propelling the segment.

Get Free Sample Report

End-users Segment Analysis

Based on end-users, the market is segmented into travel, financial services, transportation & logistics, government, retail, healthcare, media & entertainment, and others. The financial services segment held around 37% of the total market share in 2021.

Blockchain technology is used in financial services to manage financial transactions in businesses. The need for blockchain technology in financial services is being driven by the technology's ability to deliver secure and efficient transactions.

It is projected that the technology will be widely embraced in this vertical, because of these characteristics such as reduced total cost of ownership, Initial Coin Offerings (ICOs), rapid transactions, high industry ecosystem compatibility, and rising cryptocurrencies.

Enterprise Size Segment Analysis

On the basis of enterprise size, the market is bifurcated into large enterprises and small & medium enterprises.

The small & medium enterprises segment is estimated to expand at a high CAGR during the forecast period. Small and medium businesses have a hard time scaling processes like funding, processing payments, and selecting supplementary services that are necessary for worldwide expansion.

They can use blockchain technology to solve problems like subsidizing and transferring accounts. Furthermore, blockchain technology's secure and safe data exchanges and smart contracts assist small and medium businesses in streamlining supply chains. Furthermore, blockchain-based storage systems allow small businesses to securely and affordably store data.

Regional Analysis

In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America dominated the global market in 2021. Organizations in the region are increasingly adopting blockchain technology, which is propelling the regional market.

Digital identity detection solutions, payment and wallet solutions, and smart contracts are being implemented by industries such as BFSI, retail, and government, necessitating the use of blockchain technologies. Furthermore, a rise in cryptocurrency adoption among North Americans is one of the primary drivers driving regional market growth.

Get Free Sample Report