The Global Blockchain Technology Market, by Type (Public blockchain, Private blockchain and Consortium blockchain), by Application (Application, Financial Services and Non-Financial sector), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 80,177.1 Million by 2027, exhibiting a CAGR of 58.7 % during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.
A blockchain or previously referred to as block chain is an increasing list of records called blocks containing transaction data and timestamps of the previous block that are linked using cryptography. Blockchain is a faster, more secure, and more economical technology used to carry out online transactions across financial services and nonfinancial sectors. Since the blockchain technology is decentralized, it eliminates the necessity of third parties or intermediaries to verify online transactions. As a result of this, the global blockchain technology market is expected to witness a paradigm shift during the forecast period owing to its increased adoption in the financial services and nonfinancial sectors.
The global blockchain technology market was accounted for US$ 1,977.1 Mn in terms of value in 2019 and is expected to grow at CAGR of 58.7% for the period 2019-2027
Reduced operational costs offered by blockchain technology is expected to boost the global blockchain technology market growth during the forecast period
The control of transactions distributed over parties involved in the transaction, which facilitates the process to carry out faster. Since there is not the intervention of a third-party or intermediaries, it reduces the operational cost of the transaction. Moreover, it reduces infrastructure cost incurred on third-party data authentication and verification and aids in speeding up the transaction process. As a result of this, blockchain technology has attracted enormous investments in both the financial and the nonfinancial sectors. Furthermore, reduced operational costs allow users to make large-scale payments in a secure way. Thus, reduced operational cost is expected to support growth of the global blockchain technology market over the forecast period.
Increasing number of proactive initiatives by government of various countries are expected to present lucrative growth opportunities
Governments of various countries are focused on taking proactive initiatives, in order to implement blockchain technology in various sectors including BFIS and retail sectors. For instance, in November 2019, the Government of India through its Ministry of Electronics and Information Technology issued its National Blockchain Technology. Major players can capitalize on untapped potential by providing blockchain technology in the countries where the technology is in the nascent stage and gain a competitive edge in the market.
Limited availability of technical skillsets for the adoption of blockchain technology is expected to hinder the global blockchain technology market growth over the forecast period
The implementation of blockchain technology requires specialized infrastructure, skilled professionals, and robust financial support. Since the technology is in its nascent stage, there are very limited startups and companies providing blockchain technology. Moreover, majority of these service providers and skilled professionals are present in developed regions such as Europe and North America. Hence, the proliferation of blockchain in emerging regions such as Latin America and Asia Pacific remains slow, which in turn, is expected to hinder the global blockchain technology market growth during the forecast period.
Blockchain technology can secure transactions, digital assets, and intellectual property and hence it offers extended benefits to the non-financial sector as well. In the government sector technology can be used to prevent corruption and fraud. Apart from financial services blockchain technology is expected to disrupt industries such as a notary, music industry, supply chain industry, healthcare industry, and the government sector.
Technology giants across the globe are focused on developing blockchain-powered smartphones, in order to enhance their market presence. For instance, in January 2020, Pundi X, a Singapore-based company, launched the world’s first blockchain-powered smartphone, ‘Blok on Blok (BOB)’ at the Consumer Electronics Show (CES) 2020 at Las Vegas Convention Center, U.S.
Key players operating in the global blockchain technology market are Digital Asset Holdings, LLC, Microsoft Corporation, Ripple, Deloitte Touche Tohmatsu Limited, R3, Consensus Systems (ConsenSys), IBM Corporation, JP Morgan Chase & CO, Coinbase, Accenture and Chain Inc.