Blockchain Technology Market Size, Share & Industry Analysis, By Component (Platform/Solution and Blockchain as a Service), By Type (Public, Private, Hybris, and Consortium), By Application (Digital Identity, Payments, Smart Contracts, Supply Chain Management, Internet of Things (IoT), and Others), By Deployment (Proof of Concept, Pilot, and Production), By Industry (BFSI, Energy & Utilities, Government, Healthcare and Life Sciences, Manufacturing, Telecom, Media & Entertainment, Retail & Consumer Goods, Travel and Transportation, and Others), and Regional Forecast, 2024-2032

The global blockchain technology market size was valued at USD 17.57 billion in 2023 and is projected to grow from USD 27.84 billion in 2024 to USD 825.93 billion by 2032, exhibiting a CAGR of 52.8% during the forecast period (2024-2032). The scope of this study considers technology platforms, solutions, and services offered by companies, such as Wipro’s distributed ledger blockchain technology solutions, ecosystem services advisory, consulting services, platform services, and application services. It also includes Microsoft’s Azure service, Azure digital ledger workbench, and other related products and services.

The rapidly growing digital environment is expected to fuel the demand for blockchain technology across various industries. Similarly, the usage of digital payment systems is further expected to gain traction with the adoption of this technology. As the growth opportunities for the market are increasing, various companies are heavily investing in this technology. For instance,

• In May 2021, Ernst & Young Global Limited announced a new investment of approximately USD 100 million to expand its offerings to the public domain.

The COVID-19 pandemic caused the closure of most production facilities, which disrupted the entire economy and investments in digital technology. Also, the outbreak had a significant impact on digital ledger technology. Key players in the market have invested significantly and reconstructed their digital strategies, which are anticipated to surge the demand for digital ledger technology post-pandemic. Also, the pandemic accelerated the adoption of digital technologies across sectors ranging from government to retail.

Blockchain Technology Market Trends

Increasing Adoption of Blockchain-as-a-Service to Generate New Opportunities for Key Players in the Market

The pandemic has generated many opportunities for cloud-based services by creating an innovative strategy for enterprises to give work-from-home access. The demand for cloud-based solutions to develop virtual work platforms has surged. As a result, there is an increasing demand for advanced software across different industries to ensure job security. According to the World Economic Forum, BaaS bridges the global trade financing gap, and thus, SMEs can use this technology for its global supply chain operations.

BaaS is an ideal solution for issues that cause inconvenience to small and medium-sized enterprises (SMEs). SMEs employing cloud-based solutions are implementing blockchain-based services to safeguard digital entities and authenticate human identities, thereby increasing the demand for BaaS products.

Further, blockchain technology trends have revolutionized different industry sectors and are expected to continue over the forecast period. Following are a few crucial trending factors that enhance the future of blockchain technology:

• Interoperability solutions


• Decentralized Finance (DeFi) evolution


• Innovation in Non-Fungible Tokens (NFTs)


• Security, confidentiality, and privacy improvements


• Decentralized Autonomous Organizations (DAOs) and cross-industry applications


• Artificial Intelligence (AI) and Blockchain integration

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Blockchain Technology Market Growth Factors

Rising Identity and Data Theft Incidents to Surge Demand for Cryptographic Ledger Solutions

BFSI companies are adopting digital ledger technology to secure end-user’s financial data and identity. Technology applications including cross-border transactions, clearing & settlements, trade finance platforms, digital identity verification, and credit reporting are gaining traction across the BFSI industry. This is expected to foster the market growth. For instance,

• In June 2021, India’ major banks, such as the State Bank of India(SBI), HDFC, ICICI Bank, and others, collaborated to establish Indian Bank’s digital ledger infrastructure company private limited, Indian Banks' Blockchain Infrastructure Co (IBBIC), to secure transactions, reduce transaction processing time, and speed up the process of letters of credit.

Blockchain is gaining traction despite questions about its scalability, security, and sustainability. Confidentiality, Integrity, and Availability (CIA) will be referenced to assess the current maturity level of blockchain technology.

Also, blockchain technology has the highest potential to transform ESG reporting and monitoring, streamlined payments, data interoperability and sharing, provenance tracking, IoT integration and real-time tracking, quality assurance and compliance.

Therefore, the rising awareness of data protection from malware activities within enterprises and consumers is one of the emerging drivers projected to drive the blockchain technology market growth.

RESTRAINING FACTORS

Lack of Skilled Professionals to Hinder Market Growth

Rising digital transformation among industries has increased various threats and cyberattacks. However, organizations face a lack of skilled professionals to overcome the situation of risk factors. Therefore, the adoption of technologically advanced solutions is slow and is anticipated to impact the market growth for the next few years. Further, developing countries, such as India, Peru, Mexico, among others, are facing lack of awareness about the risks associated with data protection. Therefore, the adoption of the technology is likely to be stagnant for a few years.

Blockchain Technology Market Segmentation Analysis

By Component Analysis

Rising Adoption of Cloud Applications to Boost BaaS Segment Share

Based on component, the market is divided into Blockchain-as-a-Service (BaaS) and platform/solution.

The BaaS segment is projected to record the fastest growth rate in the market owing to the increasing usage of cloud-based services, such as smart contracts, crowdfunding, crypto wallet development, and others across enterprises. With the growing awareness of key benefits and increasing demand for this platform, various players are entering the market to offer third-party digital ledger services.

The platform/solution segment is estimated to grow steadily due to increased demand for R3 Corda, Hyperledger Ethereum, Fabric, Ripple, and other solutions in various industries. Platform/solution allows digital ledger network and application developers to design customized Distributed Ledger Technology (DLT) networks for end-users.

By Type Analysis

Private Solutions to Dominate Market due to their Benefits

Based on type, the market is categorized into public, private, hybrid, and consortium.

Private blockchain technology to gain dominant revenue share during the forecast period. Private solutions and services can allow organizations to change regulations at a lower transaction cost and reverse transactions. Also, the benefit of high scalability is expected to fuel the demand for private digital ledger solutions.

The hybrid segment is predicted to witness rapid growth rate during the forecast period owing to greater privacy offered to transactions and data. Along with performance, hybrid digital ledger solutions offer controlled access and thus, the demand for this type is growing in healthcare, real estate, and other industries.

The consortium, also referred to as federated digital ledger, is beneficial where multiple businesses operate in the same industry and leverages a standard platform to streamline the operations. Consortium type offers collaborated platform to facilitate innovation across enterprises.

During the forecast period, the public segment is expected to register a significant CAGR. This robust increase can be attributed to the growing focus of numerous institutions and governments on establishing efficient and open transactions.

By Deployment Analysis

Rising Demand for Improving Online Transactions to Drive Adoption of Proof of Concept Deployment Model

Based on deployment, the market is categorized into pilot, production, and proof of concept. The proof of concept segment is expected to hold the largest market share due to the increasing adoption of this deployment model for enhancing online transaction services in numerous sectors.

The production segment is expected to record the highest CAGR during the forecast timeline. This growth can be attributed to the increasing requirement for simplification of complex business processes and integrated supply chain management software.

By Application Analysis

Increased Adoption of Cloud Services to Boost Application of Digital Ledger Technology in Payments

Based on application, the market is divided into payments, digital identity, supply chain management, smart contracts, Internet of Things (IoT), and others.

The payments segment is expected to have a larger market share. This rise is due to the increasing use of cloud services in payment and transaction procedures. The technology increases the transparency of payment systems, cost-effectiveness, and operational efficiency.

During the forecast period, the digital identity segment is expected to record the fastest CAGR in the market. This is owing to a worrying rise in identity frauds and cyber-attacks across the world.

The supply chain management segment is anticipated to be a significant application in the market. Digital ledger technology can drive transparency in supply chain networks and reduce frauds of costly goods, such as pharmaceutical drugs and diamonds. This technology can also help companies eliminate the impact of counterfeit products.

Similarly, the Internet of Things (IoT) segment is expected to record a significant growth rate during the forecast period as blockchain technology enhances IoT security and brings transparency in its ecosystem.

By Industry Analysis

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BFSI Segment to Increase the Use of Digital Ledger Solutions to Enhance Efficiency

Based on industry, the market is divided into BFSI, government, energy & utilities, government, manufacturing, healthcare & life sciences, telecom, media & entertainment, travel and transportation, telecom, retail & consumer goods, and others.

The increasing adoption of digital ledger solutions and services by banks and other financial institutions to optimize company processes and decrease operational costs has made the BFSI industry a dominant segment in the market.

During the forecast period, the retail & consumer goods industry is projected to exhibit the highest CAGR, owing to the rapid shift on digital technologies. Other industry verticals including healthcare & life sciences, energy & utilities, government, manufacturing, travel and transportation, and telecommunications are expected to grow rapidly.

REGIONAL INSIGHTS

Geographically, the market is fragmented into five regions such as North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.

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As per the global market statistics, North America dominated the market in 2020. This dominance can be attributed to the growing presence of major players, such as IBM Corporation, Microsoft Corporation, Oracle Corporation, AWS, and Digital Asset Holdings LLC, in the U.S. In addition, this market is highly diverse. As a result, market participants are focusing on extending their geographical presence by providing customized services to clients across the region.

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Europe currently holds the second position in the market and is expected to grow steadily during the forecast period. Governments and private businesses in France, Germany, Italy, Spain, Luxembourg, the Netherlands, and other nations heavily invest in digital currencies. Businesses in the market are concentrating on growing their geographical footprint by providing customized digital ledger services to clients worldwide.

Asia Pacific is expected to record the highest CAGR during the forecast period. Manufacturing companies in China, Japan, Oceania, South Korea, and South East Asia are increasing their technology investments. Furthermore, these countries have a large number of digital ledger technology vendors.

Latin America is expected to witness steady growth during the analysis period. The regional market is going through a phase of transformation owing to increased investments by governments and key players in the oil & gas, energy & utilities, and transportation sectors.

The Middle East & Africa market is in its early stages owing to a rising number of startups and domestic businesses that are investing in the development of digital currencies. Key players are focusing on developing advanced solutions for oil & gas, information technology, and transportation sectors.

List of Key Companies in Blockchain Technology Market

New Product Launches and Enhancements to Existing Products Using Digital Ledger Technology to Augment Market Growth

Key market players are working on creating a wide variety of distributed ledger solutions to address the needs of customers and organizations. The introduction of innovative solutions helps companies increase their business expertise. In addition, the upgrading and expansion of existing product portfolios will improve vendors’ market position.

Market players are concentrating on improving digital ledgers to address security issues that companies and small businesses can face. This also allows businesses to gain access to real-time information. For instance,

• August 2022 - Amazon Web Services launched ‘Amazon Managed Blockchain Service’ that will support two famous open source blockchain frameworks, Ethereum and Hyperledger Fabric.


• April 2022- Intel Corporation launched its latest Intel Blockscale ASIC (Application-Specific Integrated Circuit) technology that will provide its consumers with an energy-efficient blockchain hashing for proof-of-work consensus networks.

List of Key Companies Profiled:

• Accenture PLC (Ireland)


• Amazon Web Services, Inc. (U.S.)


• Wipro Limited (India)


• IBM Corporation (U.S.)


• Intel Corporation (U.S.)


• LeewayHeartz (U.S.)


• Microsoft Corporation (U.S.)


• Oracle Corporation (U.S.)


• R3 (U.S.)


• Tata Consultancy Services Limited (India)

KEY INDUSTRY DEVELOPMENTS:

• April 2023 – The German government, under the Future Finance Act, is planning to introduce regulations for startups associated with financial innovation. The main aim of the legislation is to improve digitalization of capital markets through the issuance of e-securities on a blockchain.


• April 2023 – Ava Labs, the developer of the Avalanche blockchain platform, introduced new institutional deployments to develop and enhance the blockchain technology environment.


• April 2023 – The BBK Network deployed a state-based architecture on an Ethereum Virtual Machine (EVM), eliminating the need for open payment channels between two parties. It is designed to overcome various challenges that are hampering the widespread adoption of Decentralized applications (DApps) in the current blockchain technology ecosystems.


• February 2023 - Wipro Limited, a technology services and consulting company, launched Decentralized Identity and Credential Exchange (DICE) ID, which puts users in control of their data, resulting in faster, more secure, and easier private information sharing online.


• January 2023 - Amazon Web Services announced a partnership with Ava Labs, which is building layer-1 blockchain Avalanche to scale blockchain adoption across institutions, enterprises, and governments. This partnership will make it easy to launch to individuals and manage nodes on Avalanche.

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An Infographic Representation of Blockchain Market

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The research report highlights leading regions to offer users a better understanding of the market. Furthermore, the report provides insights into the latest industry trends and analyzes technologies deployed at a global level. It further highlights the growth-stimulating factors and restraints, and the market’s competitive landscape to help the reader gain in-depth knowledge about the market.

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