Global Blockchain Market Size By Providers (Application Providers, Middleware Providers), By Application (Supply Chain Management, Digital Identity), By Vertical (Travel and Hospitality, Healthcare and Life Sciences), By Geographic Scope And Forecast

Blockchain Market Size And Forecast

Blockchain Market size was valued at USD 12.30 Billion in 2024 and is projected to reach USD 716.00 Billion by 2031, growing at a CAGR of 66.20% from 2024 to 2031.

• Blockchain can be thought of as a breakthrough method of storing and managing information. Consider a public ledger, similar to a large record book that is constantly growing and replicated over a massive network of computers. This ledger stores information in chronological sequence, with each entry securely linked to those before and after it. This is the essence of blockchain technology.
• Each entry in this ledger, known as a block, comprises data. This data could be anything digital, such as bank transactions, medical records, or even election results. The main characteristic is that once a block has been put into the chain, it is extremely impossible to change or tamper with. This is because each block is cryptographically linked to the one before it, forming a chain of trust.
• This complete ledger is not kept in one single spot. Instead, data is distributed over a network of computers, making it extremely secure. Any attempt to change a block would necessitate modifying all following blocks in the chain, which is nearly difficult across a large network. The distributed structure of blockchain eliminates the need for a single trusted authority to validate transactions, making it perfect for scenarios requiring trust and transparency.
• Overall, blockchain provides a safe, transparent, and decentralized method for storing and managing information. It has the potential to transform many sectors by reducing procedures, increasing security, and encouraging confidence in networks.

Global Blockchain Market Dynamics

The key market dynamics that are shaping the global blockchain market include

Key Market Drivers

• Increased Government Initiatives Governments throughout the world are realizing the promise of blockchain technology and investigating its uses in a variety of industries. This includes measures to streamline government operations, increase transparency, and provide regulatory frameworks for blockchain use.
• DecentralizationBlockchain runs on a decentralized network of nodes, eliminating the need for a central authority or middleman to verify transactions. This decentralization boosts resilience and decreases the risk of single points of failure, ensuring that activities run smoothly and reliably even in the face of network disruptions or cyber attacks.
• Interoperability and Standards Efforts to develop interoperability standards and protocols for blockchain networks enable easy integration and communication among various blockchain platforms and applications. Standardization increases compatibility, interoperability, and scalability, allowing for greater adoption of blockchain technology across industries and use cases.
• Efficiency and Speed Blockchain technology makes transactions faster and more efficient by eliminating intermediaries and automating processes. Smart contracts, or self-executing contracts with established rules encoded on the blockchain, allow for the automatic implementation of agreements, lowering processing times and removing delays associated with manual intervention.

Key Challenges

• Security Vulnerabilities Although blockchain has excellent security measures, it is not flawless. Certain vulnerabilities exist, such as 51% assaults, which occur when a malevolent actor gets control of the majority of the network’s computational capacity. Furthermore, smart contracts, which automate agreements on blockchain, might be vulnerable to attacks if not properly coded.
• Legal and Governance IssuesThe disagreements over ownership rights, smart contract enforcement, and governance structures in decentralized networks, hinder the acceptance and implementation of blockchain technology. Clear legal frameworks, smart contract standards, and governance procedures are required to solve these issues and instill trust and confidence in blockchain-based systems.
• Security Concerns Despite its reputation for security, blockchain technology is susceptible to security flaws and cyber threats. Coding faults, smart contract vulnerabilities, and consensus algorithm flaws can expose blockchain networks to security breaches, hacks, and attacks, eroding trust and confidence in the platform.
• Privacy Privacy issues about blockchain technology originate from its immutable and transparent nature, which makes it difficult to protect critical information while maintaining user privacy. While blockchain provides pseudonymity, transaction details are exposed to all participants, creating questions regarding data privacy and confidentiality.

Key Trends

• Non-Fungible Tokens (NFTs) (NFTs) are popular for representing unique digital goods like art, collectibles, and virtual real estate on the blockchain. NFTs use blockchain technology to offer provenance, ownership, and scarcity for digital assets, allowing producers and collectors to tokenize and exchange digital content in a secure and transparent manner.
• Layer 2 Scaling Solutions Layer 2 scaling methods, including sidechains, state channels, and rollups, are addressing scalability difficulties in blockchain networks. These solutions aim to increase transaction throughput, lower costs, and improve user experience by offloading transactions from the main blockchain while preserving security and decentralization.
• Decentralized Finance (DeFi) Decentralized Finance (DeFi) is a popular blockchain movement that allows for direct lending, borrowing, and trading without the need for intermediaries. DeFi platforms use smart contracts and decentralized protocols to enable peer-to-peer transactions, automated liquidity provision, and yield farming, hence fostering innovation and growth in the blockchain community.
• Cross-Industry Collaboration Cross-industry collaboration and collaborations are driving innovation and acceptance in the blockchain market, with companies exploring new use cases and solutions. Collaborative work in healthcare, supply chain, and energy highlight blockchain technology’s ability to handle difficult challenges and create value across multiple industries.

Global Blockchain Market Regional Analysis

Here is a more detailed regional analysis of the global blockchain market

North America

• North America had the greatest revenue share in the global market during the predicted period. The market’s rapid growth rate may be credited to the increased presence of leading market players like as IBM Corporation, Intel Corporation, Amazon Web Services, Inc., Oracle, and others, which are expected to promote market revenue growth in the area.
• Also, the region’s market revenue growth is predicted to be boosted by increased internet penetration and the use of digital payment methods such as cryptocurrency, cashless payments, credit and debit cards, and card-based payment methods. According to estimates from 2022, 27 million Americans, or 8.3% of the population, possess cryptocurrency.
• Furthermore, the existence of huge corporations with established IT infrastructures, as well as the growing demand for fast and secure online payments, have prompted businesses to invest in blockchain platforms and services. Apex Clearing, a clearing and execution company registered with the Securities and Exchange Commission (SEC) in the United States, launched a trading platform in collaboration with its subsidiary Apex Crypto LLC on June 28, 2021, to assist financial advisors and brokers in helping their clients trade Bitcoin, Litecoin, and Ethereum.
• This technology is rapidly being used by US banks to streamline banking and lending services, reduce counterparty risk, and shorten issuance and settlement times. On December 13, 2021, for instance, Wells Fargo collaborated with The Hong Kong and Shanghai Banking Corporation Limited (HSBC) to leverage its blockchain Foreign Exchange (FX) settlement technology. Both banks will utilize the technology to settle multiple foreign exchange transactions. This technique saves both money and risk by lowering transaction costs and the settlement hazards that are commonly associated with FX transactions. These elements are likely to drive revenue growth in the region’s markets.

Europe

• The European market is predicted to have extremely rapid revenue growth during the forecast period, owing to the increasing presence of key automotive firms such as Volkswagen Group, Daimler AG, Bayerische Motoren Werke AG, and others. Automobile manufacturers are fast using blockchain technology to trace vehicle parts throughout the supply chain, production process, and delivery to the end customer, lowering total operating costs.
• BMW Group, for instance, said on April 5, 2020, that it would use blockchain to enhance supply chain openness through the Mobility Open Blockchain Initiative (MOBI). The technology minimizes the coordination costs of commercial networks that offer mobility services.
• In addition, the European government’s rigorous laws controlling the technology are projected to increase demand for blockchain across a wide range of businesses. On January 10, 2020, the EU passed the fifth Anti-Money Laundering Directive (5AMLD). This is the first time that regulators will evaluate cryptocurrencies and crypto service providers. The goal is to make crypto-assets traceable in the same manner that traditional payments are. This will prevent illegal use for money laundering, terrorism financing, and other criminal activities.

Global Blockchain MarketSegmentation Analysis

The Global Blockchain Market is Segmented on the basis Providers, Applications, Verticals, And Geography.

Blockchain Market, By Providers

• Application Providers
• Middleware Providers
• Infrastructure Provider

Based on provider, the market is bifurcated into Application Providers, Middleware Providers, and Infrastructure Providers. An application provider is a corporation that uses a system to provide application functionality and services to many customers while charging a rental or usage-based transaction fee. An infrastructure provider, on the other hand, is a company that provides all or a portion of the necessary system by leveraging rights-of-way to enable clients to receive telecommunications benefits.

Blockchain Market, By Application

• Supply Chain Management
• Exchanges
• Digital Identity
• Smart Contracts
• Documentation

Blockchain technology is making waves across industries, with versatile applications from supply chains to document management. Among them, digital identity stands out as a rapidly expanding sector. This surge in digital identity is fueled by a growing problemidentity fraud and relentless cyberattacks. As the digital world expands, so does the need to protect our personal information. Blockchain technology offers a glimmer of hope in this digital jungle. It creates a secure and unalterable record of your identity, reducing the risk of fraud and giving you peace of mind. With data breaches and identity theft becoming increasingly common, businesses and individuals alike are embracing blockchain-based solutions to safeguard their digital identities. These solutions build trust, making online transactions and connections more reliable.

Blockchain Market, By Vertical

• Travel and Hospitality
• Healthcare and Life Sciences
• Retail and e-Commerce
• Media and Entertainment
• Real Estate
• Transportation and Logistics

Based on Vertical, the market is fragmented into Travel and Hospitality, Healthcare and Life Sciences, Retail and e-commerce, Media and Entertainment, Real Estate, and Transportation and Logistics. The retail and e-commerce sector is the fastest expanding part of the global blockchain business, with a broad network of suppliers, retailers, e-commerce platforms, and consumers interacting directly across retail locations and digital internet channels. Currently, retail and e-commerce organizations are making significant investments to improve their clients’ user experiences, recognizing blockchain technology’s critical role in optimizing processes, improving transparency, and ensuring secure transactions in the retail landscape.

Blockchain Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World

On the basis of Geography, the Global Blockchain Market is classified into North America, Europe, Asia Pacific, and the Rest of the world. North America is currently the dominant segment of the global blockchain market. Several factors contribute to North America’s supremacy. Key blockchain technology firms such as IBM, Microsoft, and Oracle have a substantial presence there. These organizations drive innovation and adoption through R&D initiatives, as well as by providing cloud-based blockchain solutions (BaaS) that make the technology more accessible to businesses.

Key Players

The “Global Blockchain Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are 18M, Microsoft, SAP SE, oracle, Digital Asset Holdings, LLC, CONSENSYS, Huawei Cloud Computing Technologies Co, Ltd., Factom, Stratis Group Ltd., Intel Corporation, Symbiont, Guardtime, lphaPoint, NTT DATA Americas, Inc., Ripple, SoluLab, Chainalysis Inc., Cision US Inc., Riot Platforms, Inc., and Bitfarms Ltd. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Blockchain Market Recent Developments

• In March 2021, Amazon Web Services, Inc. announced Ethereum, a decentralized blockchain architecture for Managed Blockchain. The Ethereum on Managed Blockchain platform enables developers to simply build Ethereum nodes without the need to set up infrastructure or manage them. This involves encrypting data as it is transferred and received, monitoring and replacing nodes, and scaling them as needed.
• In June 2020, IBM Corporation announced a new IBM Blockchain 2.5 platform for multi-party systems. The platform uses blockchain technology to deliver fast, easy, and transparent transactions. In addition to multi-cloud services and IoT connectivity, multi-party systems provide real-time information, manage transportation and logistics, and help clients make investment decisions.

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