Global Blockchain Market Size, Share, Growth Analysis, By Component(Platform, Services), By Type(Public, Private), By Application(Food & Agriculture, Transportation & Logistics) - Industry Forecast 2022-2028

Global blockchain market is segmented on the basis of component, type, application, and region. Based on the component, the market is segmented as platform and services. Based on the type, the market is segmented as public, private, and hybrid. Whereas, based on the applications, the market is segmented as food & agriculture, transportation & logistics, manufacturing, energy & utilities, healthcare & life sciences, media & entertainment, BFSI, retail & e-commerce, it & telecom, and others. Based on region, it is categorized into North America, Europe, Asia Pacific, South America, and Middle East & Africa.

Analysis by Component

In 2021, the blockchain platform segment is projected to hold the most lucrative share of 40% in the global market. Availability of a diverse range of platforms for blockchain such as Ethereum, Hyperledger, R3 Corda, Ripple, and Quorum are among a few of them. Various features offered by these platforms are a major aspect that supports the industry growth over the forecast period.

Analysis by Type

In 2021, the public blockchain segment is projected to hold the most lucrative share of 20% in the global market. The segment growth is attributed to the increased focus of various organizations and governments to establish efficient and open transactions. Whereas, the private segment also holds a substantial market share, as it enables businesses to reverse transactions and change regulations and a minimal transaction cost.

Analysis by Applications

In 2021, the BFSI segment held a substantial share of 16% in the global market. In financial services, blockchain technology is used 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. Due to factors including increasing cryptocurrencies, high compatibility with the industry ecosystem, speedy transactions, Initial Coin Offerings (ICOs), and lower total cost of ownership, the technology is predicted to be widely utilized in this vertical.

Based on the geographical viewpoint, the global blockchain market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. In 2021, the North America region dominated the global market, accounting for more than 37.0% of global revenue. The increasing adoption of blockchain technology by various organizations is driving regional market growth. Government, retail, and BFSI industries are implementing payment and wallet solutions, smart contracts, and digital identity detection solutions, necessitating the use of blockchain technologies. Furthermore, the increased use of cryptocurrency among North Americans is one of the major factors driving regional market growth.

On the other hand, the Asia Pacific market is expected to grow at the fastest CAGR during the forecast period. Blockchain technology has been promoted by governments in countries such as China, Japan, and India. This is primarily due to the benefits that this technology provides to a variety of industries, such as increased transparency and efficiency. For example, the South Korean government announced an investment of USD 880 million in blockchain development projects in 2019.

Drivers

• Legalization of cryptocurrencies is considered a major factor driving market growth forwards, as companies and investors are more likely to invest in blockchain technology. Legalized cryptocurrencies also push market participants to put in more effort to improve their services in order to acquire a competitive advantage. In the near future, these companies' efforts are projected to make blockchain technology more effective and efficient. DeFi is a new financial system based on blockchain that aims to reduce banks' influence over financial services and money. Over the forecast period, market growth is also expected to be driven by increased strategic initiatives in the decentralized financial domain. For example, Square, a payment company, said in July 2021 that it is developing a DeFi business using bitcoin. Thus, such activities are likely to aid the industry growth during the forecast period.

Restraint

• Uncertain regulatory and compliance environment is one of the major factors that hinder market growth. Some governments have outlawed the use of initial coin offerings (ICOs). One of the most difficult aspects of modernizing transaction systems is regulatory acceptance, which is hindering market growth. With the rapid advancement of technology, regulatory agencies must evaluate what gaps exist in current regulations and how they affect total technological applications. Financial institutions from all across the world are collaborating to develop blockchain technology standards, which might hamper market growth.

The market is fragmented in nature. Market participants are concentrating on strategies such as mergers and acquisitions to strengthen their market position. For example, Circle Internet Financial Limited completed the acquisition of SeedInvest, an equity crowdfunding platform, in March 2019. The acquisition was intended to create a token marketplace that would enable individuals and businesses to raise capital and interact with investors via open crypto infrastructure.

Web3 Foundation (Polkadot), Helium Systems Inc., Ocean Protocol Foundation Ltd., Zel Technologies GmbH (Flux), Kusama, Livepeer, Inc., and Filecoin, and Kadena LLC are among the market's major players. To strengthen their market position, these companies are focusing on strategies such as partnerships and mergers and acquisitions. For example, Mphasis, an information and technology company, announced its collaboration with CrossTower, a cryptocurrency exchange solution provider, in January 2022. The collaboration aims to establish a Web 3.0 and blockchain-based Center of Excellence, with products launched and traded on the CrossTower platform.

Top Players in the Global Blockchain Market

• IBM Corp. (US)
• AWS Inc. (US)
• SAP SE (Germany)
• Intel Corp. (US)
• Oracle Corp. (US)
• Huawei Technologies (China)
• Accenture Plc (Ireland)
• Wipro Ltd. (India)
• Bitfury (The Netherlands)
• Infosys Ltd. (India)
• BlockCypher (US)

Recent Developments

• In March 2021, AWS Inc. announced the broad availability of Ethereum on Amazon Managed Blockchain. Ethereum is a popular decentralized blockchain platform that developed a peer-to-peer network allowing members to transact without the use of a trusted central authority. Decentralized finance (DeFi) is a network of financial applications that rely on blockchain networks; it is one of the most prominent use cases.
• In October 2020, the world's first fully-integrated procure-to-pay blockchain solution was developed by Accenture and Digital Ventures, Siam Commercial Bank's fintech unit, to expedite purchasing processes, payments, and loan acquisition for Thai firms.
• In September 2020, the Intel Neuromorphic Research Community (INRC) and Neuromorphic.io united. Neuromorphic.io was the first blockchain firm to be approved into Intel's elite research lab, intending to develop blockchain-based neuromorphic computer processors through advanced research.

• Rapid digitalization of the banking and finance industries has resulted in significant growth in the blockchain technology market. Digital India and other government efforts aimed at boosting digitization in the BFSI sector could serve as growth pillars for the blockchain technology market. The significant adoption of blockchain technology across healthcare and media & entertainment also enacts as major growth pillars for the global blockchain market.
• The blockchain technology sector has seen an influx of investments from a variety of investors and companies, which is projected to result in enormous market growth. The large number of collaborations, partnerships, joint ventures, mergers, and acquisitions that have taken place in the blockchain technology industry is proven to be a substantial growth multiplier.
• Various venture capital companies including NGC Ventures, Digital Currency Group, Fenbushi Capital, Pantera Capital, Node Capital, Blockchain Capital, Coinbase Ventures, Andreessen Horowitz, and IDG Capital among others are some of the top venture capital companies that invested in blockchain technology solutions.

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.

According to our analysis, among the component, the platform segment is projected to hold a dominating share during the period. While among the type and application the public and BFSI segments hold a dominating market share respectively. Further, blockchain is revolutionizing the BFSI industry, as banks and financial services, companies are among the most heavily invested enterprises exploring blockchain technology.