Global Blockchain AI Market Size By Technology (Computer Vision, Natural Language Processing, Machine Learning), By Deployment (Cloud, On-Premise), By Application (Smart Contracts, Governance, Logistics and Supply Chain Management, Payments & Settlements), By Geographic Scope And Forecast

Blockchain AI Market Size And Forecast

Blockchain AI Market size was valued at USD 448 Million in 2023 and is projected to reach USD 2730 Million by 2031, at a CAGR of 25.5% from 2024 to 2031.

Businesses are producing increasing amounts of data, which is driving growth in the use of AI for data analysis. Furthermore, blockchain AI solutions have the potential for cost savings and operational improvements. The Blockchain AI Market is being driven by a greater emphasis on personalized client experiences and bespoke offerings. The Global Blockchain AI Market report delivers a holistic evaluation. The report thoroughly analyzes key segments, trends, drivers, restraints, competitive landscape, and factors that play a substantial role in the market.

Global Blockchain AI Market Drivers

The market drivers for the Blockchain AI Market can be influenced by various factors. These may include

• Enhanced Data Security By offering a decentralized and unchangeable record for information sharing and archiving, the combination of blockchain technology and artificial intelligence improves data security. Sensitive information is especially valuable in this secure infrastructure for supply chain management, banking, and healthcare.
• Increased Adoption of AI As AI is used more and more in many industries, there is a greater need for blockchain-based solutions to deal with issues with data transparency and integrity. Blockchain technology ensures the quality and dependability of AI-powered services and apps by verifying the legitimacy of the data used to train AI algorithms.
• Growing worries About Data Privacy Organizations are investigating blockchain AI solutions that provide more control over data access and usage due to growing worries about data privacy and ownership. Blockchain gives people control over their data while allowing AI algorithms to access it selectively for processing and analysis.
• Demand for Transparent and Reliable AI Systems Companies and customers alike are looking for reliable and transparent AI systems that can shed light on the decision-making process. Blockchain technology makes it possible to transparently record the decisions and acts of AI algorithms, which promotes transparency and confidence in AI-powered systems.
• Decentralized AI Marketplaces Are Necessary Blockchain technology is enabling the development of decentralized AI marketplaces, which are democratizing access to AI datasets and algorithms. These markets enable peer-to-peer exchanges and cooperation, enabling businesses and developers to profitably and effectively share AI resources.
• Regulatory Compliance Requirements The adoption of blockchain AI solutions is being driven by regulatory mandates, such as the GDPR (General Data Protection Regulation) in Europe and HIPAA (Health Insurance Portability and Accountability Act) in the healthcare industry, to ensure compliance with data protection regulations. The transparent data governance offered by blockchain’s immutability and auditability features facilitate regulatory compliance.
• Growing Interest in Federated Learning Due to privacy concerns and data localization requirements, federated learning, a distributed machine learning approach, is gaining interest. It trains AI models across various decentralized devices. Blockchain technology guarantees data privacy, integrity, and incentive among participating nodes, which can enable safe and effective federated learning.
• Extension of DAOs and Smart Contracts Automated and untrusted decision-making and agreement execution is made possible by the combination of AI systems with smart contracts and decentralized autonomous organizations (DAOs). Smart contracts built on the blockchain can carry out predetermined scenarios and transactions based on insights generated by artificial intelligence, simplifying corporate processes and lowering dependency on middlemen.
• The emergence of AI-driven token economies is being fueled by the convergence of blockchain and AI technology. In these economies, tokens are utilized as incentives for sharing data, training models, and improving algorithms. These token economies ensure equitable reward for contributions while encouraging cooperation and creativity in AI research and development.
• Partnerships and Cross-Industry Collaboration The adoption of blockchain AI solutions is being accelerated by partnerships and cross-industry collaboration among research institutions, industry consortia, and technology vendors. Inter-industry collaborations enable the sharing of knowledge, assets, and optimal methodologies, promoting the advancement of blockchain artificial intelligence solutions that are both interoperable and scalable.

Global Blockchain AI Market Restraints

Several factors can act as restraints or challenges for the Blockchain AI Market. These may include

• Scalability Issues There may be scalability issues when integrating blockchain with AI applications, especially when it comes to latency and transaction throughput. The practical utility of blockchain networks in large-scale deployments may be limited due to their inability to handle the volume of data and compute resources needed for AI tasks such as training and inference.
• Complexity and Technical Obstacles Specialized technical knowledge in both blockchain and AI technologies is needed to implement blockchain AI solutions. Businesses looking to use blockchain AI capabilities may find it difficult to adopt due to the difficulty of combining these two domains and the dearth of qualified experts in both fields.
• Cost of Implementation and Infrastructure Hardware, software, and operating costs are among the significant upfront expenditures associated with creating and maintaining blockchain AI infrastructure. Furthermore, large operating expenses may result from the energy-intensive consensus processes employed in blockchain networks, particularly in AI applications that demand substantial processing power.
• Blockchain technology improves data security and transparency, but it also raises questions about data privacy and regulatory compliance, especially in highly regulated sectors like finance and healthcare. Blockchain AI implementations face difficulties adhering to data protection laws like GDPR and HIPAA since it might be difficult to balance decentralized data storage with legal obligations.
• compatibility and Adoption of Standards The smooth integration and data interchange across diverse systems is hindered by the lack of compatibility between various blockchain platforms and AI frameworks. Furthermore, cooperation and creativity throughout the ecosystem are hampered by the lack of defined protocols and frameworks for blockchain AI interoperability, which causes fragmentation and inefficiencies.
• Perception and Trust Issues Although blockchain AI systems have many potential uses, there is still mistrust and confusion about their maturity, dependability, and suitability for everyday use. Widespread adoption of these technologies is hampered by worries about blockchain networks’ vulnerability to security lapses, smart contract flaws, and artificial intelligence prejudices.
• Regulatory Uncertainty and Legal Risks Businesses face legal and compliance risks due to the rapidly changing regulatory environments and unclear legal frameworks surrounding blockchain and AI technology. The development and implementation of blockchain AI solutions are complicated by ambiguities surrounding intellectual property rights, liability, and jurisdictional difficulties, which discourages investment and innovation in the industry.
• Energy Use and Environmental Impact A large portion of blockchain networks’ energy usage and carbon footprint come from the energy-intensive consensus techniques they employ, including proof-of-work (PoW). Questions concerning the sustainability and long-term viability of blockchain AI solutions are raised by worries about the environmental impact of blockchain mining activities, especially in light of the growing focus on environmental sustainability.

Global Blockchain AI Market Segmentation Analysis

The Global Blockchain AI Market is Segmented on the basis of Technology, Deployment, Application, and Geography.

Blockchain AI Market, By Technology

• Computer Vision
• Natural Language Processing
• Machine Learning

Based on the Technology, the market is segmented into Computer Vision, Natural Language Processing, And Machine Learning. During the forecast period, the machine learning (ML) segment is estimated to have the greatest market share. This technology is assisting various industries, including education, healthcare, BFSI, automotive, and others, by improving analytical precision. Furthermore, the increasing applicability of virtual assistants and chatbots is likely to drive market demand for NLP technology.

Blockchain AI Market, By Deployment

• Cloud
• On-Premise

Based on the Deployment, the market is segmented into Cloud And On-Premise. In the near future, the cloud-based category is expected to hold the biggest market share. The increased usage of cloud-based solutions and services among end users is driving the segment’s growth. The cloud also delivers pre-trained network solutions and services that aid in the development of AL-based blockchain applications. Because of increased investments in Al-blockchain platforms by SMEs and governments, the on-premise market is expected to rise rapidly.

Blockchain AI Market, By Application

• Smart Contracts
• Governance
• Logistics and Supply Chain Management
• Payments & Settlements
• Others

Based on the Application, the market is segmented into Smart Contracts, Governance, Logistics and Supply Chain Management, Payments & Settlements, And Others. During the estimated period, the logistics and supply chain management segment is expected to earn the most market share. The development of blockchain artificial intelligence-powered solutions for different and complicated supply chain management applications is a priority for key market players. The payments and settlements segment is likely to show significant growth owing to the increasing adoption of transparent transaction solutions in the various end-use industries. The increasing use of blockchain Al solutions in various applications including smart contracts, governance, risk, and compliance management, and others is expected to drive market expansion.

Blockchain AI Market, By Geography

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Based on Regional Analysis, the Blockchain AI market is classified into North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa. During the projected period, North America is expected to hold the largest share of the blockchain Al market. The region’s leadership is mostly due to increased investments and a growing number of blockchain initiatives in the United States and Canada. According to the China Academy of Information and Communications Technology (CAICT), there were around 2,000 blockchain projects in the United States between 2014 and 2017. Furthermore, North American governments are focusing on or deploying blockchain artificial intelligence-based solutions in their public utilities, defense & military, barks, airports, and other sectors. During the forecast period, Asia Pacific is expected to develop at the fastest CAGR. According to CAICT, over 33,000 active registered firms in China are developing blockchain technology and services.

Key Players

The “Global Blockchain AI Market” study report will provide valuable insight with an emphasis on the global market including some of the major players such as BurstIQ, Cyware Labs, Figure Technologies, Gainfy, Core Scientific, CoinGenius, NetObjex, Fetcn.ai, LiveEdu, Ai-Blockcnain, AlpnaNetworks, Bext360, Blackbird.Al, Chainhaus, Computable, Finalze, Hannah Systems, and others.

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.

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Reasons to Purchase this Report

• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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