Blockchain Market was accounted at USD 2,035 Million in 2019 and is estimated to grow at a CAGR of 66.1% during forecast period. GMI Research has undergone a detailed analysis of the trends, drivers, and restrain of the market. The significant factors are stimulating the blockchain market are increasing customer demand for bitcoins and the rising adoption of distributed ledger technology (DLT) systems based on data analytics.
Introduction of the Blockchain Market Report
Blockchain is typically a system that holds back the hackers from hacking by recording information in such a manner that makes it impossible or hard to hack, alter, or cheat the system. It acts as a digital ledger of transactions that are replicated and allocated across the complete network of computer systems on the blockchain. The blocks in the chain comprise multiple transactions, and each time a new transaction occurs on the blockchain, a record of the transaction is added to each participant’s ledger.
Key Players of the Market
Key Drivers and Emerging Trends
The global blockchain market is rising at a considerable rate over the forecast period. The constant innovation in bitcoin transactions and the growing awareness of the several advantages offered by blockchain, like allowing verification without dependency on the third party, recording the transactions in chronological order, and other benefits, are the main factors steering the global blockchain market opportunities in the upcoming years. Blockchain technology is the most reliable technology in the IT domain. This technology has not only disturbed the way of financial sector operators but has also affected various other sectors like media, consumer goods, and others. In addition, the increasing acceptance of distributed ledger technology (DLT) systems based on modern data analytics is a further emerging driver propelling the demand of the market. DLT is a decentralized system used to record transactions with secured mechanisms and modern data analytics.
Furthermore, the high demand for cloud-based services, especially among organizations, is estimated to boom the market demand. The blockchain-as-a-Services (BaaS) allows the companies to choose different applications such as enterprise resource management systems, security management systems, and several other systems. The emergence of the COVID-19 pandemic has negatively impacted the growing demand of the market. Therefore, the current coronavirus has emerged multiple challenges for the blockchain market, particularly in 2020. Blockchain technology has various usages like donation tracking, crisis management, public health data surveillance, and other operations. The pandemic situation has temporarily shut down several industries, which has affected the blockchain market.
Restraint in the Blockchain Market
On the other hand, the enormous investment in the initial stage is one of the crucial factors likely to restrain the blockchain market size. High venture capital funds and a high budget are required to establish the specialized architecture and infrastructure.
Type – Segment Analysis
The private blockchain segment is expected to rise at a faster CAGR during the forecast period. It is due to the growing awareness of the various benefits offered by the private blockchain, it provides a private key to a particular user that gives businesses more opportunities to influence the blockchain technology, and other benefits are alluring a plethora of consumers towards the market. A private blockchain is like a category of blockchain technology where write permission is retained centralized to a sole organization.
Organization Size – Segment Analysis
The SME segment encounters to grow at a faster CAGR during the forecast period. It is attributed to the rising necessity for streamlining the business processes economically across the SMEs is motivating them to prefer blockchain technology to save their money and time. The adoption rate of blockchain in the experimentation stage in most SMEs is estimated to rise owing to its transparency and less infrastructural cost.
Application Area – Segment Analysis
Based on the application area, the banking and financial services segment witnesses its dominance in the market during the forecast period. The increasing significance of blockchain technology in the BFSI sector is contributing to segment growth. Blockchain technology offers several benefits such as high compatibility within the financial services industry, increasing cryptocurrencies, and Initial Coin Offering (ICOs), coupled with quick transactions. All these benefits are responsible for the growth of the segment in the market.
The North America region is expected to lead the global blockchain market during the forecast period. It is mainly due to the early acceptance of blockchain technologies by companies in this region. Moreover, the constant developments in blockchain technology are further bolstering market growth.
Blockchain Market Segmentation
Segmentation By Component
Segmentation By Provider
Segmentation By Type
Segmentation By Organization Size
Segmentation By Application Area
Segmentation By Region
Rest of World
Introduction of GMI Research
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