Global Blockchain Technology Market- Insights
The adoption of blockchain technology provides solution for banks while eliminating intermediaries and aiding in real-time transition. Blockchain will reduce the cost of manual work and lead to enhanced customer services and satisfaction. These features will led to growth of the blockchain technology market. For instance, on December 30, 2015, NASDAQ announced that it made its first ever share trade using blockchain technology. NASDAQ used its proprietary Linq platform (developed in collaboration with Chain.com and global design firm IDEO) to sell shares.
In IT industry, there is significant increase in the adoption of IoT devices, which require security in daily transaction. Blockchain technology can be used in tracking billions of connected devices, enabling processing of transitions and coordination between devices.
Moreover, healthcare industry is facing issues related to sharing of patient data among providers and organizations. Patients may relocate to different cities, change health plans, switch doctors for treatments, and most of their detailed health records remain with their previous healthcare provider. Adoption of blockchain provides best solution in clinical research, where patient’s critical data is stored in secured manner and can be accessed from any point, as blockchain provides high degree of transparency. In blockchain, patient’s data is publically writeable by anyone.
Furthermore, in education sector, blockchain technology is increasingly gaining traction for storing academic credentials of students so that it must be universally acceptable and verified. The adoption of these technologies enable education institutions to streamline and effectively manage their verification procedures and also, it helps to reduce fraudulent claims of unearned educational credits. For instance, in June 2016, the Learning Machine collaborated with MIT Media Lab launched Blockcerts toolset, which is an open infrastructure for creating, issuing, viewing, and verifying blockchain-based certificates. Therefore, implementation of blockchain technology in these sectors have led to growth of the blockchain technology market.
Figure 1. Global Blockchain Technology Market Growth (%), by Region, 2019-2027
Source: Coherent Market Insights, 2018-19
Asia Pacific blockchain technology market is projected to grow with a CAGR of 67.8% over the forecast period, owing to digitization of currency, safe online payment gateways, and increasing online transactions. Also, key players in Asia Pacific region are launching blockchain technology platforms. For instance, in November 2017, Infosys Finacle, part of Edge Verve Systems, a product subsidiary of Infosys, announced the global availability of Finacle Trade Connect, a blockchain-based trade finance solution for banks. This solution is helpful in digitizing trade finance business process. Moreover, companies who are adopting blockchain technology in this region are also partnering with other companies for growth of this market. For instance, in May 2018, Infosys announced its partnership with 7 leading banks, namely Axis bank, ICICI bank, IndusInd bank, Kotak Mahindra bank, RBL bank, South Indian bank, and Yes bank, in order to run a successful pilot project of Finacle Trade Connect, a block chain technology-based solution developed specifically to address trade finance process requirements of banks.
Figure 2. Global Blockchain Technology Market Share (%), By Type, 2018
Source: Coherent Market Insights, 2018-19
Among type, consortium segment is the fastest growing segment in the global market and is expected to exhibit a CAGR of around 69.0% during the forecast period. Consortium blockchain, also known as federated blockchain, operates under the leadership of groups. This kind of blockchain has over one in charge, where representative individual or group of companies come together and make decision for the best output of whole network. These groups are called as consortiums or a federation. By using consortium blockchain, multiple companies define common communication standards and make them executable by using blockchain technology. Various features of consortium blockchain technology such as security, privacy, compliance, and efficient performance have led to increase in use of this technology, which drives growth of this market. For instance, in June 2019, Microsoft and Salesforce, enterprise software companies implementing blockchain technology, joined Hyperledger blockchain consortium, multi-project open source collaborative company hosted by The Linux Foundation, created for development of blockchain technology, which will help build applications using this technology.
Some of the key players operating in the global blockchain technology market include Accenture Plc, Amazon Web Services, Inc., Advanced Micro Devices, Inc. IBM Corporation, Infosys Ltd., Intel Corporation, Microsoft Corporation, NVIDIA Corporation, SAMSUNG, SAP SE, Siemens AG, Xilinx, Inc., and others.
Blockchain technology is a system that provides a robust environment for secure data sharing in real-time. It is a type of distributed ledger system that provides enhanced security to the real-time digital economic process. Blockchain comprises blocks of digitally recorded data, which creates a distributed ledger. No one can remove anything from a blockchain ledger. In this way, the blockchain ledger is built iteratively so that it contains a private and verifiable record. The blockchain technology market is expected to have a positive impact, owing to its transaction transparency that requires less cost and less time consumption.
Blockchain technology is being increasingly used in the BFSI segment for financial transactions and cross-border payments. Online payments have gained huge attraction. Card-based payment methods using credit and debit cards have become dominant. Blockchain provides increased speed of transaction processing and greater efficiency in real-time processing. It also helps to secure payments, maintain customer identities, and settle cross-border payments. As this technology is decentralized, various financial technology (FinTech) companies are also gaining opportunity to invest a part of their total investment in the blockchain.
Due to rapid growth of manufacturing industries, management of supply chain activities have become more complex and demand for data transparency and security have increased. Therefore, companies are focusing on blockchain enabled supply chain technology for faster and efficient supply chain, data transparency for accurate and tamper evident database, and to streamline the business process with the use of blockchain technology. This will drive growth of the global blockchain technology market over the forecast period. For instance, Wal-Mart Stores and Visa are using blockchain to streamline supply chain, speed up payments, and store records.
However, as the blockchain technology is in experimental phase in emerging economies, people are hesitant to adopt this technology due to less awareness and stringent government rules on cryptocurrency transactions, which is limiting growth of global blockchain technology market.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.
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