The global Blockchain market is expected to grow from USD 1.3 Billion in 2017 to USD 169.5 Billion by 2025 at a CAGR of 83.8% during the forecast period 2018-2025, according to the new report published by Fior Markets. The adoption of blockchain technology in retail and supply chain management and ease in business processes which creates transparency are the two major factors for the market growth.
Growing investments in venture capital funding and blockchain technology is a major factor driving the market. In addition, ease in business processes and transparency by blockchain technology reduces working costs, thus, fuelling the growth of the market. Lack of technical professionals for handling the blockchain technology may hamper the growth of the market. However, high implementation of blockchain solutions for payments, smart contracts, and digital identities may drive the market growth.
Key players operating in the global blockchain market include IBM, AWS, Microsoft, SAP , Intel, Oracle, Bitfury, Cegeka, Earthport, Guardtime, Digital Asset Holdings, Chain, Huawei, BlockCypher, Symbiont, BigchainDB , Applied Blockchain, RecordsKeeper, Blockpoint, Auxesis Group, BTL Group, Blockchain Foundry, AlphaPoint, and Factom. To enhance their market position in the global blockchain market, key players are now focusing on adopting the strategies such as product innovations, mergers & acquisitions, recent developments, joint venture, collaborations, and partnership.
- For instance, in November 2018, Microsoft collaborated with Interswitch Group, a Nigeria-based electronic payment and digital commerce solutions provider which resulted in the launch of blockchain-based supply chain financing service to ensure fast and seamless trade financing in the entire supply chain system.
- In October 2018, SAP launched new services for blockchain customers and launched a new network extensibility services. This service enables customers and partners to integrate different blockchain infrastructures. In addition, this service will help customers to meet specific regional, hardware, performance and regulatory requirements.
Application Providers segment valued around USD 620 Million in 2017
The provider segment is classified into application providers, middleware providers and infrastructure providers. The application providers segment has dominated the blockchain market with a value of around 620 million in 2017. The utilisation of blockchain technology as an application platform to build the underlying trust base of the system including owners, lenders, investors and service providers is propelling the growth of the market.
SMEs segment valued around USD 830 Million in 2017
Organization size segment includes small and medium-sized enterprises and large enterprises. SMEs segment dominated the market in 2017. The requirement for restructuring the business processes in a cost-effective way is driving the SMEs segment. Low infrastructure costs and transparency in business processes is also mobilising the segment.
Banking, financial services, and insurance, the government segment held the largest market share of 24.50% in 2017
Industry vertical segment is divided into segments such as banking, financial services, and insurance, government, healthcare and life sciences, media and entertainment, retail and ecommerce, travel and hospitality, transport and logistics and real estate. Banking, financial services, and insurance, the government segment are dominating the market.
Smart contracts segment held a market share of 27.60% in 2017
The application segment includes payments, exchanges, smart contracts, documentation, digital identity, supply chain management, governance, risk, and compliance management. The smart contracts segment held a market share of 27.60% in 2017. Smart contracts arranged over the blockchain network provides for no modification in contract terms and conditions, thus, making it difficult for third parties to hack the data in contracts.
Regional Segment Analysis of the Blockchain Market
- North America (U.S., Canada, Mexico)
- Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
- Asia-Pacific (China, Japan India, Rest of APAC)
- South America (Brazil and Rest of South America)
- The Middle East and Africa (UAE, South Africa, Rest of MEA)
Asia Pacific region dominated the global blockchain market with USD 0.54 Billion in 2017 whereas the North America region held the second dominant position in the market. North America is dominating the region because of increasing implementation of blockchain technologies by the organizations in this region. Also, the evolution of several blockchain technology providers impacts the overall share of the market. Hence, they have started implementing technology to grow business applications. The Asia Pacific region is growing rapidly because of technological advancement and use of skilled labours to handle the blockchain process.
The global blockchain market is analysed on the basis of value (USD Billion). All the segments have been analyzed on global, regional and country basis. The study includes an analysis of more than 30 countries for each segment. The report offers in-depth analysis of driving factors, opportunities, restraints, and challenges for gaining the key insight of the market. The study includes porter’s five forces model, attractiveness analysis, raw material analysis, supply, demand analysis, competitor position grid analysis, distribution and marketing channels analysis.
More information on the report here.