Blockchain technology is a decentralized software program that enables protected digital transactions of digital currencies such as Bitcoin. These transactions are recorded in the register from a number of computers. The register maintains a continuous set of data containing information about the transaction records without changing the transaction information. The data in the register is maintained in the form of lists, which are organized in Blocks for each time period. These Blocks consist of information about the transactions, and provide a reference to the previous Block, thus, linking the prior to the present. Block links to the prior Block to form a Blockchain. Generally, one Block contains the information about a set of transactional records for a particular period of time or fixed memory size.

Blockchain permits applicants to authenticate and review transactions. Blockchain-based transactions of value can be completed in faster way, more safely, and economically than conventional transaction systems. Rising popularity of these ledger chains has led to a significant increase in total capital investments in cryptocurrencies. As of December 2017, according to CoinMarketCap, a cryptocoin price market capital tracker, total market capitalization of the cryptocurrencies was valued at over US$ 500 billion from around US$ 18 billion in 2016.

Blockchain protocol has application in various segments such as Initial Coin Offering institutions, digital currency providers, blockchain stocks, peer-to-peer lender, banking, financial services, and insurance (BFSI), and information technology to perform digital transactions, securely. Owing to this factor, blockchain-based systems are increasingly being adopted by financial sectors including digital currency providers, banking, financial institutes, and insurance. 

Blockchain technology can be used to build a permanent and transparent ledger system for gathering data on exchanges, real-time tracking of digital transaction and payments, and to prevent frauds and errors, are also factors expected to boost the blockchain market growth.

Additionally, some major applications of blockchain includes use in cryptocurrencies such as Bitcoin, Black coin, Dash, and Nxt and blockchain platforms such as Factom as a distributed registry, Gems of decentralized messaging, Storj and Sia for distributed cloud storage, and Tezos for decentralized voting.

Blockchain market Taxonomy:

On the basis of type, the blockchain market segmented into:

  • Private
  • Public
  • Consortium

On the basis of application, the blockchain market segmented into:

  • Asset Management
  • Insurance
  • Payment
  • Supply Chain  
  • Others

On the basis of end-user industry, the blockchain market segmented into:

  • Banking, Financial Services, and Insurance (BFSI)
  • Information Technology (IT)
  • Healthcare
  • Education
  • Telecom
  • Others

On the basis of Region, the blockchain market segmented into:

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa

Regional Insights

The blockchain market is expected to be segmented on the basis of geography in North America, Europe, Asia Pacific, Latin America, Middle East and Africa regions. The market in North America is expected to be dominant in the global market, owing to rising awareness and increasing applications of this technology in various segments. For instance, U.S. Department of Energy is exploring the application of blockchain for the management of next-generation power grids.

Rising demand for e-Commerce in emerging economies of Asia Pacific such as China and India is another factor fueling growth of the market. According to Coherent Market Insights’ analysis, in 2016, China accounted for over 63% of digital buyers, followed by India and Japan in the region. Hence, Asia Pacific accounted for over 10% of the global retail e-Commerce sales in 2016. This is owing to increasing implementation and improving blockchain services in this region. Blockchain is used in e-Commerce for gathering data on exchanges, real-time tracking of digital transaction, and payments. Increased adoption and development of Bitcoin in China is expected to fuel growth rate of block chain market in Asia Pacific region. According to Coherent Market Insights, in 2017 the number of Bitcoin users in China were relatively high and over 80% of Bitcoin transactions were done in the Chinese Yuan.

Competitive Insights

Key players in this market are focusing on new application areas for this technology. For instance, in April 2017, IBM partnered with ASCAP and PRS for implementing blockchain technology in music distribution to improve data accuracy.

Key players operating in the Blockchain market include IBM Corporation, Microsoft Corporation, Amazon.com, Inc., SAP SE, Intel Corporation, Samsung Group, NVIDIA Corporation, Xilinx, Inc., AMD, Inc., Siemens AG, Accenture Plc, Advanced Micro Devices, Inc. and Infosys Ltd.

Key Developments

In January 2019, ConsenSys, a blockchain software company, announced entering in a new partnership with Advanced Micro Devices (AMD), a U.S.-based multinational semiconductor company, and Halo Holdings, the Abu Dhabi-based investment management firm, to develop an optimized blockchain-based cloud solution dubbed "W3BCloud" for the blockchain industry.

In October 2018, Infosys Finacle, part of EdgeVerve Systems Limited, a fully owned product subsidiary of Infosys, and R3, one of the fastest growing enterprise blockchain software company, announced collaboration on blockchain solutions. This partnership enabled banks to easily access and deploy the Finacle’s blockchain solutions on Corda, which is R3’s open-source blockchain platform. 

In April 2019, Accenture and an insurance firm, Generali Employee Benefits (GEB), launched the first blockchain-based solution for the employee benefits (EB) industry to mitigate processing errors in the reinsurance process through smart contracts and automatic reconciliation

In November 2018, Amazon launched two new blockchain products know as, Amazon Quantum Ledger Database and Amazon Managed Blockchain, to help clients develop blockchain networks without incurring the costs of creating their own platform. Users can build blockchain platforms by using AWS’s cloud-computing services

In September 2018, Intel and software multinational company, SAP announced partnership on Enterprise Blockchain Development Initiative, which allows customers to integrate an enterprise and blockchain data using the pay-as-you-go model

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Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.


Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users