Blockchain Interoperability Market by Solution (Cross-chain Bridging, Cross-chain APIs, Federated or Consortium Interoperability), Application (dApps, Digital Assets/NFTs, Cross-chain Trading & Exchange), Vertical and Region - Global Forecast to 2028
[251 Pages Report] The global blockchain interoperability market size is projected to grow from USD 0.3 billion in 2023 to USD 1.0 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 27.2% during the forecast period. The key drivers for the market growth include the need for seamless communication and data exchange between different blockchain networks, the increasing adoption of dApps across industries, the demand for cross-chain asset transfers, and the growing importance of regulatory compliance and standardized practices in the blockchain ecosystem. In addition to these factors, as mentioned earlier, enhanced collaboration and ecosystem development further drive the demand for blockchain interoperability. As organizations seek to foster partnerships and create interconnected networks, the need for seamless communication and data exchange between blockchains becomes paramount. The growing interconnectedness of the IoT also fuels the demand for blockchain interoperability, as it enables secure and efficient communication between IoT devices across different blockchain networks. Furthermore, exploring new markets and the increasing volume of cross-border transactions further contribute to the rising demand for blockchain interoperability solutions.
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The blockchain interoperability market is projected to provide billion-dollar opportunities for solutions and service providers. Recession would also have a substantial impact on the blockchain interoperability market. The effect of a recession on the blockchain interoperability market is likely to be mixed. A recession could lead to reduced investments and budget cuts in technology-related projects, potentially slowing the adoption and implementation of blockchain interoperability solutions. Companies may prioritize cost-cutting measures over exploring new technologies. However, recessions often drive innovation, the search for more efficient solutions, and blockchain interoperability can offer cost-saving benefits and enhanced operational efficiency. Additionally, governments and regulatory bodies may continue to invest in blockchain technology to stimulate economic recovery, which could positively impact the blockchain interoperability market.
COVID-19 Impact
The COVID-19 pandemic has had a mixed impact on the blockchain interoperability market. On the one hand, the pandemic has disrupted global economies, leading to budget constraints and reduced investments in various sectors, including technology. This could slow the adoption and implementation of blockchain interoperability solutions as companies prioritize immediate cost-saving measures. However, the pandemic has also highlighted the importance of digital transformation and the need for secure and efficient data exchange, key drivers for blockchain interoperability. As businesses and organizations adapt to remote work and digital processes, the demand for interoperability solutions to connect disparate systems and facilitate seamless communication has increased. Furthermore, the pandemic has accelerated the adoption of blockchain technology in specific sectors, such as healthcare and supply chain management, where transparency, traceability, and secure data exchange have become crucial. This increased adoption could drive the demand for blockchain interoperability solutions in these industries.
Overall, while the COVID-19 pandemic has presented challenges to the blockchain interoperability market, it has also created opportunities for growth and innovation as organizations recognize the importance of digital resilience and seek efficient solutions for their evolving needs.
Blockchain Interoperability Market Dynamics
Driver: Growing developments in dApps
The rapid development and widespread adoption of dApps across industries like finance, supply chain management, and healthcare drive the blockchain interoperability market. Companies such as VeChain and Waltonchain utilize blockchain interoperability to enhance transparency and efficiency in supply chain management. Projects like Polkadot and Cosmos pioneer cross-chain interoperability solutions in finance, enabling dApps to access diverse functionalities and exchange assets. Interoperability protocols like the IBC protocol bridge isolated blockchains, while collaborations between platforms like Ethereum and Polkadot strengthen the dApp ecosystem. The increasing presence of dApps and the need for seamless cross-network operation fuel the demand for robust blockchain interoperability solutions, driving ongoing advancements in the field.
Restraint: Scalability issues
Scalability issues in blockchain networks stem from the inherent design and consensus mechanisms governing their operation. As participant and transaction numbers increase, the decentralized nature of blockchain necessitates resource-intensive and time-consuming consensus processes, leading to bottlenecks and delays. Public and permissionless blockchains like Bitcoin and Ethereum face notable scalability challenges due to block size limits and congestion issues. Scaling solutions like the Lightning Network and Ethereum 2.0 have been introduced to address these limitations. However, achieving seamless blockchain interoperability requires efficient, high-throughput networks capable of handling large-scale data transfers and interoperable transactions. While progress has been made, scalability remains an ongoing concern for widespread adoption and smooth cross-chain asset and data exchange.
Opportunity: Interconnected IoT
Blockchain interoperability provides a valuable opportunity for the IoT ecosystem by enabling secure and transparent data exchange, authentication, and automation across multiple IoT networks. It allows IoT devices from different manufacturers and platforms to seamlessly communicate and share data, eliminating data silos and fostering a unified ecosystem. With interoperability, IoT devices can leverage blockchain’s distributed ledger technology to securely record and verify transactions and sensor data, enhancing trust and data integrity. Blockchain interoperability enhances security, privacy, and decentralized identity management in IoT deployments. These advancements drive efficiency, cost reduction, and automation, enabling innovative IoT applications in smart cities, supply chain management, healthcare, and energy management. Ultimately, blockchain interoperability empowers the IoT by creating a robust and trusted ecosystem for seamless data exchange and collaborative interactions.
Challenge: Lack of awareness and understanding
A significant obstacle to blockchain interoperability is the limited awareness and understanding of the technology, especially among SMEs. Many companies lack knowledge about blockchain and its potential applications. The dominance of technical experts and a technology-centric approach exacerbate this challenge, hindering investment and stifling innovation. To overcome this hurdle, a more business-focused approach is needed to improve the user experience for non-technical individuals. Organizations should prioritize educational initiatives to enhance understanding of blockchain technology at all levels, making it accessible and understandable to a broader audience. By doing so, the barriers to blockchain interoperability can be gradually overcome, enabling wider adoption and unlocking its full potential.
Blockchain Interoperability Market Ecosystem
The healthcare vertical is forecasted to register the highest CAGR in the blockchain interoperability market
The healthcare sector is witnessing remarkable growth in the blockchain interoperability market, primarily driven by the increasing demand for streamlined data exchange among multiple stakeholders. This includes hospitals, clinics, insurers, and patients who require a secure and standardized means of communication. By leveraging blockchain interoperability, the industry tackles the challenge of fragmented healthcare records, resulting in improved access to comprehensive patient information. One of the notable advantages of blockchain technology in healthcare is its robust security features, which ensure data protection and compliance with regulatory guidelines. Moreover, the implementation of blockchain-enabled innovations in areas such as patient consent management, clinical trials, supply chain transparency, and fraud prevention further propels the expansion of blockchain interoperability in the healthcare industry.
By region, North America accounts for the highest market size during the forecast period.
Due to several key factors, the North American region holds the highest market size in the blockchain interoperability market. These include the region’s increasing adoption of blockchain technology in various industries, such as healthcare, supply chain management, and finance. Additionally, well-established vendors originating from North America and government initiatives and investments have contributed to the region’s high market size. With a proactive approach to fostering innovation and collaboration, North America has positioned itself as a leading hub for blockchain interoperability solutions.
Key Market Players
Some of the well-established and key market players in the blockchain interoperability market include Oracle (US), R3 (US), GAVS Technologies (US), LeewayHertz (US), Ontology (Singapore), Inery (Singapore), Fusion Foundation (Singapore), Quant Network (UK), Band Protocol (Thailand), LiquidApps (Israel), LI.FI (Germany), Biconomy (Singapore), Datachain (Japan), RioDeFi (China), Polyhedra Networks (Italy), SupraOracles (US), Orb Labs (US), and ChainPort (Israel).
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Report Metrics |
Details |
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Market size available for years |
2018-2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD Million/Billion) |
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Segments Covered |
Solutions, Applications, Verticals, and Regions |
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Geographies covered |
North America, Europe, Asia Pacific, Middle East and Africa, and Latin America |
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Companies covered |
Major vendors in the global blockchain interoperability market include Oracle (US), R3 (US), GAVS Technologies (US), LeewayHertz (US), Ontology (Singapore), Inery (Singapore), Fusion Foundation (Singapore), Quant Network (UK), Band Protocol (Thailand), LiquidApps (Israel), LI.FI (Germany), Biconomy (Singapore), Datachain (Japan), RioDeFi (China), Polyhedra Networks (Italy), SupraOracles (US), Orb Labs (US), and ChainPort (Israel). |
The study categorizes the blockchain interoperability market by solutions, applications, verticals, and regions.
Recent Developments
- In January 2023, Oracle (US) enhanced its Oracle Blockchain Platform, introducing new capabilities to support interoperability and improve blockchain solution development. Its key features include OAuth 2.0 support for secure callback delivery, expanded web3 API support, Ethereum interoperability for atomic transactions, extended tokenization SDKs for advanced tokenization solutions, and TTF-based tokenization support for exchange across different fungible tokens.
- In February 2022, LeewayHertz partnered with XDC Network (US) to advance blockchain solutions for global trade and finance. Their collaboration aims to enhance the XDC Network ecosystem and address scalability and sustainability challenges in the blockchain industry. While the partnership’s primary focus is on developing decentralized and scalable solutions, such as SDKs and upcoming projects like the XDC NFT dApp and XDC Explorer, their joint efforts also hint at the potential for blockchain interoperability.
- In January 2022, Ontology introduced the Ethereum Virtual Machine (EVM), allowing EVM-centric developers to construct decentralized applications on its blockchain platform. The Ontology EVM reduces migration costs, lowers gas fees, and offers faster block production. Developers can leverage the ONTO Wallet and ONT ID for broader adoption.
- In October 2021, R3 (US) acquired Ivno (UK) to enhance blockchain interoperability. Ivno’s platform enables rapid tokenization of assets and compliant, secure transactions. Integrating Ivno’s capabilities strengthens R3’s ability to optimize balance sheet management and explore stablecoin models using blockchain technology.
- In October 2021, Inery (Singapore) enhanced its decentralized storage and database solution, which integrates blockchain technology with distributed database properties, potentially contributing to blockchain interoperability. With a focus on data decentralization, security, and reducing breaches, Inery offers a relevant solution for decentralized data management.
Frequently Asked Questions (FAQ):
What are the opportunities in the global blockchain interoperability market?
The growing demand for Inter-Blockchain Communication (IBC), the rising need for seamless cross-chain asset transfers, the emphasis on regulatory compliance and standardized practices, and advancements in decentralized applications (dApps) are the market opportunities for the global blockchain interoperability market.
What is the definition of the blockchain interoperability market?
Blockchain Interoperability entails the establishment of a communication network that facilitates the sharing and trading of digital assets, data, and messages among different blockchains. The primary objective is to unlock the full potential of blockchain technology across diverse industry verticals. Additionally, essential to this endeavor is the implementation of cross-chain bridging, leveraging smart contracts and tokens to create an interconnected framework for seamless blockchain interactions.
Which region is expected to show the highest market share in the blockchain interoperability market?
North America is expected to account for the largest market share during the forecast period.
What are the major market players covered in the report?
Major vendors, namely, include Oracle (US), R3 (US), GAVS Technologies (US), LeewayHertz (US), Ontology (Singapore), Inery (Singapore), Fusion Foundation (Singapore), Quant Network (UK), Band Protocol (Thailand), LiquidApps (Israel), LI.FI (Germany), Biconomy (Singapore), Datachain (Japan), RioDeFi (China), Polyhedra Networks (Italy), SupraOracles (US), Orb Labs (US), and ChainPort (Israel).
What is the current size of the global blockchain interoperability market?
The global blockchain interoperability market size is projected to grow from USD 0.3 Billion in 2023 to USD 1.0 Billion by 2028 at a Compound Annual Growth Rate (CAGR) of 27.2% during the forecast period.
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The study involved significant activities in estimating the current market size for blockchain interoperability. Intensive secondary research was conducted to collect information about blockchain interoperability and related ecosystems. The industry executives validated these findings, assumptions, and sizing across the value chain using a primary research process as a next step. Top-down and bottom-up market estimation approaches were used to estimate the market size globally, followed by the market breakup and data triangulation procedures to assess the market segment and sub-segments in blockchain interoperability.
Secondary Research Process:
In the secondary research process, various sources were referred to for identifying and collecting information regarding blockchain interoperability. These sources include annual reports, press releases, blockchain interoperability software and service vendor investor presentations, forums, vendor-certified publications, and industry/associations white papers. These secondary sources were utilized to obtain key information about the blockchain interoperability’s solutions and services supply & value chain, a list of 100+ key players and SMEs, market classification, and segmentation per the industry trends and regional markets. The secondary research also gives us insights into the key developments from market and technology perspectives, which primary respondents further validated.
The factors considered for estimating the regional market size include technological initiatives undertaken by governments of different countries, gross domestic product (GDP) growth, ICT spending, recent market developments, and market ranking analysis of primary blockchain interoperability solutions and service vendors.
Primary Research Process:
We have conducted primary research with industry executives from both the supply and demand sides. The primary sources from the supply side include chief executive officers (CEOs), vice presidents (VPs), marketing directors, and technology and innovation executives of key companies operating in the blockchain interoperability market. We have conducted primary interviews with the executives to obtain qualitative and quantitative information for blockchain interoperability.
The top-down and bottom-up approaches and various data triangulation methods were implemented in the market engineering process to estimate and forecast the market segments and subsegments. Post-market engineering process, we conducted primary research to verify and validate the critical numbers we arrived at. The primary research was also undertaken to identify the segmentation types; industry trends; the competitive landscape of the blockchain interoperability market players; and fundamental market dynamics, such as drivers, restraints, opportunities, challenges, industry trends, and key strategies.
Following is the breakup of the primary research:
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Market Size Estimation Process:
For market size estimation, both top-down and bottom-up approaches were implemented to estimate, project, and forecast the size of the global and other dependent sub-segments in the overall market of blockchain interoperability.
The research methodology that has been used to estimate the market size includes these steps:
- The key players, SMEs, and startups were identified through secondary sources. Their revenue contributions in the market were determined through primary and secondary sources.
- Annual and financial reports of the publicly listed market players were considered for the company’s revenue details and,
- Primary interviews were also conducted with industry leaders to collect information about their companies, competitors, and key players in the market.
- All percentage splits and breakups were determined using secondary sources and verified through primary sources.
Top-down and Bottom-up Approach
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Data Triangulation
Data triangulation is a crucial step in the market engineering process for blockchain interoperability. It involves utilizing multiple data sources and methodologies to validate and cross-reference findings, thereby enhancing the reliability and accuracy of the market segment and subsegment statistics. To conduct data triangulation, various factors and trends related to the blockchain interoperability market are studied from both the demand and supply sides. This includes analyzing data from diverse sources such as market research reports, industry publications, regulatory bodies, financial institutions, and technology providers. By examining data from different perspectives and sources, data triangulation helps mitigate potential biases and discrepancies. It provides a more comprehensive understanding of the market dynamics, including the size, growth rate, market trends, and customer preferences.
Furthermore, data triangulation aids in identifying any inconsistencies or outliers in the data, enabling researchers to refine their analysis and make informed decisions. It strengthens the credibility of the market engineering process by ensuring that the conclusions drawn are based on robust and corroborated data. Data triangulation is a rigorous and systematic approach that enhances the reliability and validity of market segment and subsegment statistics in blockchain interoperability. It provides a solid foundation for informed decision-making and strategic planning within the industry.
Market Definition
Blockchain interoperability, as defined by MarketsandMarkets, involves the development of a communication network between blockchains. This network enables the exchange and trading of digital data, assets (including NFTs), and messages. The ultimate goal is to enhance the utilization of blockchain technology across different industry sectors. Establishing cross-chain bridging, supported by smart contracts and tokens, is a critical component in creating this interconnected network of blockchains.
Key Stakeholders
- Information Technology (IT) Professionals
- Government Agencies
- Investors and Venture Capitalists
- Small and Medium-Sized Enterprises (SMEs) and Large Enterprises
- Managed and Professional Service Providers
- Blockchain Platform Vendors
- Infrastructure Providers
- Consultants/Consultancies/Advisory Firms
- System Integrators
- Third-Party Providers
- Value-added Resellers (VARs)
- Business Analysts
- Financial Services Firms
Report Objectives
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To define, describe, and forecast the blockchain interoperability market based on solutions, applications, verticals, and regions:
- To predict and estimate the market size of five main regions: North America, Europe, Asia Pacific, Middle East & Africa, and Latin America
- To analyze the subsegments of the market with respect to individual growth trends, prospects, and contributions to the overall market
- To provide detailed information related to the primary factors (drivers, restraints, opportunities, and challenges) influencing the growth of the blockchain interoperability market
- To analyze opportunities in the market for stakeholders by identifying high-growth segments of the blockchain interoperability market
- To profile the key players of the blockchain interoperability market and comprehensively analyze their market size and core competencies.
- To track and analyze competitive developments, such as new product launches; mergers and acquisitions; and partnerships, agreements, and collaborations in the global blockchain interoperability market.
Customization Options
With the given market data, MarketsandMarkets offers customizations based on company-specific needs. The following customization options are available for the report:
Geographic Analysis
- Further breakup of the Asia Pacific market into countries contributing 75% to the regional market size
- Further breakup of the North American market into countries contributing 75% to the regional market size
- Further breakup of the Latin American market into countries contributing 75% to the regional market size
- Further breakup of the Middle Eastern and African market into countries contributing 75% to the regional market size
- Further breakup of the European market into countries contributing 75% to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Blockchain Interoperability Market