Blockchain Market

Updated on : April 17, 2023

Blockchain Market Analysis & Report Summary, Global Size

The global Blockchain Market size was reasonably estimated to be approximately $7.4 billion in 2022 and is poised to generate revenue over $94.0 billion by the end of 2027, projecting a CAGR of around 66.2% from 2022 to 2027.

The new research study consists of a market industry trend analysis. The new research study includes pricing analysis, patent analysis, conference and webinar materials, key stakeholders, and market buying behaviour. Demand for blockchain technology in retail, banking and supply chain is expected to fuel market growth. Moreover, limited availability of technical skillset to implement blockchain technology may hinder the blockchain market growth.

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Blockchain Market Growth Dynamics

Driver: Increasing venture capital funding and investments in blockchain technology

Adoption of blockchain technology solutions has achieved massive popularity during the last 2–3 years for various business applications such as payments, exchanges, smart contracts, documentation, and digital identity. Investments by venture capitalists in the blockchain technology increased during the first half of 2022. In 2021, the total capital inflows in the blockchain space were USD 30.5 billion. In 2022, this amount was surpassed by July. The total inflows by July 2022 were USD 31.3 billion in blockchain investments. With 616 deals, Web3 was the most popular sector of the blockchain industry for investment, while DeFi was the second most popular with 299 deals in 2022. Another example is the blockchain startup Diamond Standard, which raised USD 30 million in a funding round led by Left Lane and Horizon Kinetics. Investments declined during the second half of 2022. Significant disruptions in the crypto asset markets contributed to a slowdown in venture investments in the blockchain ecosystem.

Investments by venture capitalists in the blockchain technology increased during the first half of 2022. In 2021, the total capital inflows in the blockchain space were USD 30.5 billion. In 2022, this amount was surpassed by July. The total inflows by July 2022 were USD 31.3 billion in blockchain investments. With 616 deals, Web3 was the most popular sector of the blockchain industry for investment, while DeFi was the second most popular with 299 deals in 2022. Another example is the blockchain startup Diamond Standard, which raised USD 30 million in a funding round led by Left Lane and Horizon Kinetics. Investments declined during the second half of 2022. Significant disruptions in the crypto asset markets contributed to a slowdown in venture investments in the blockchain ecosystem.

Restraint: Uncertain regulatory and compliance environment

Regulatory acceptance is one of the largest challenges in transforming transaction systems. the largest restraining factors for the adoption of blockchain among most verticals is lack of regulations and the resulting uncertainties. Use of ICOs is banned by some countries. Regulatory bodies need to understand what is lacking in current regulations and how they impact the overall technological applications. Financial institutions across the globe are putting efforts to find common standards for the blockchain technology.

The distributed ledger technology is still at a nascent stage, which raises some questions for regulators and policymakers, both, at national and international levels. As the overall technology cannot be regulated , It makes regulators skeptical about the potential of the blockchain IoT technology. only technological use cases can be regulated. For example, payments, smart contracts, documentation, and digital identity. Owing to issues such as standardization and interoperability, the regulatory status of the blockchain technology remains uncertain. The uncertain regulations are impacting the blockchain market.

Opportunity:Increasing government initiatives to boost demand for blockchain platforms and services

In the last few years, the blockchain technology has drawn the attention of various stakeholders across verticals. Owing to the increased interest in this technology, various government bodies are investing in research activities to devise blockchain solutions; the government sector witnesses multiple transactions and exchanges for information every day. This information may be related to disbursements, procurements, sales, fees, fines, certifications, or approvals. Different government entities across the globe have started adopting blockchain solutions to improve transparency and efficiency in their operations and enhance the overall experience of public service delivery. The blockchain technology enables recording transactions on distributed ledgers; this offers several potential applications to government agencies for increasing transparency, preventing frauds, and improving efficiency in their operations. The Estonian government is one of the early adopters of the blockchain technology in the European region. China’s efforts to dominate the blockchain technology are highlighted by the volume of blockchain-related patents. Nearly 33,000 patents have been filed by China while the US filed over 10,000 patents. China is accelerating its applications to gain an enduring, first-mover advantage.

Challenge: Security, privacy, and control of blockchain transactions

The blockchain technology transform and revolutionize transactions. but to experience these benefits, organizations have to overcome certain security, privacy, and control challenges. The transactions are recorded in a distributed public ledger. A larger attack surface can be beneficial for Hackers to gain access to critical and sensitive data. If a blockchain based solution is used to store confidential contract information/payment data, replicating the file could potentially offer hackers more opportunities to access it. Hackers can access the database in a hub-and-spoke model as well as in a distributed database by compromising the key. The problems related to privacy in blockchain solutions is the major reason for the lower deployment of cryptographic solutions.

By organization size, large enterprises to account for largest market share during forecast period

Organizations with 1,000 or more employees are categorized as large enterprises. From its initiation, the blockchain technology has gained the interest of enterprises worldwide and has witnessed various experiments majorly conducted by large enterprises in collaboration with technology providers. Most of the major Fortune 500 companies ranging from BFSI to retail and eCommerce and from manufacturing to transportation are exploring the blockchain technology for its various benefits in business operations and data security. Some of the major enterprises experimenting with the blockchain technology are Walmart, Maersk, DHL, CGS, Dole, Nestlé, World Wildlife Fund, and the UN. Another factor contributing to the high market share of large enterprises in the blockchain market is the high R&D investments in developing the best-fit technology to enhance an organization’s business efficiency. Large enterprises have the advantage of sufficient capital and other resources to incorporate newer technologies, enabling them to take the lead in the blockchain market.

Blockchain Market Ecosystem

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By Region, North America Is expected to hold highest market share during forecast period

The large number of blockchain suppliers in North America has made it the dominant region in the global blockchain market. As the region has strong economic countries such as the US and Canada, it offers the most significant and advanced technological infrastructure. Even in terms of market size, North America is one of the major regional contributors to the global blockchain market. The presence of significant players in this region including IBM, AWS, LeewayHertz, and others is one of the primary drivers boosting the growth of the blockchain market in North America. Companies in this region are developing blockchain technology solutions to enhance the customer experience. Governments have also taken initiatives to spread awareness about the blockchain technology such as arranging Blockchain Expos around the world as the demand for the blockchain technology rises and business operations become simpler. Government organizations such as the National Institute of Standards and Technology (NIST) are another example. NIST has been exploring the blockchain technology on various levels including protocols, security guarantees, and cryptographic methods, as well as use cases, applications, and existing services. The findings of the study have been published in scholarly journals, experimentation software, and recommendations for next NIST initiatives in this area. The blockchain technology can be incorporated into a wide range of other systems in addition to manufacturing supply chains, data registries, digital identity, and record management.

Key Market Players:

The key players in the global blockchain market include IBM (US), AWS (US), Oracle (US), Huawei (China), Accenture (Ireland), Wipro (India), Infosys (India), TCS (India), SAP (Germany), Intel (US), ConsenSys (US), NTT DATA (Japan), Bitfury (Netherlands), Guardtime (Estonia), Chain (Saint Kitts and Nevis), VMware (US), SpinSys (US), LeewayHertz (US), R3 (US), Cegeka (Netherlands), Symbiont (US), BigchainDB (Germany), Applied Blockchain (UK), RecordsKeeper (US), Blockpoint (US), Auxesis Group (India), Blockchain Foundry (Canada), Factom (US), Stratis (UK), Dragonchain (US).

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Scope of the Report

Market Segmentation:

Recent Developments:

• In January 2023, AWS partners with Ava Labs. This partnership is expected to scale blockchain adoption across enterprises, institutions, and governments. Avalanche blockchain infrastructure and decentralized applications (DApps) are expected to be supported by AWS.
• In August 2022, InfStones and Oracle collaborated to accelerate Web3 development by integrating InfStones’ leading blockchain development platform with Oracle Cloud Infrastructure (OCI).
• In May 2022, Huawei signed a Memorandum of Understanding (MoU) with ChainUp. This partnership is expected to work to jointly promote the development of the blockchain technology within the Fintech ecosystem in Singapore.
• In November 2022, NTT DOCOMO and Accenture partnered to accelerate the adoption and application of Web3 for addressing social issues.
• In November 2022, Infosys partnered with VMware to launch the Blockchain-based Vital Records Management Solution. In this partnership, Infosys leveraged VMware Blockchain for Ethereum for the verification of vital records.

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