The blockchain technology market is predicted to surge at an exemplary CAGR of 44.3% through 2033, reaching USD 181.1 billion in valuation, up from just USD 4.6 billion in 2023.
Blockchain technology accounted for around 5% share of the global digital transformation market in 2022. Substantial blockchain opportunities include data decentralization, data usage control, and encryption. Supply chain management is the primary use case of Blockchain technology, followed by decentralized finance.
| Attribute | Details |
|---|---|
| Blockchain Technology Market Size (2023) | USD 4.6 billion |
| Sales Forecast (2033) | USD 181.1 billion |
| Global Market Growth Rate (2023 to 2033) | 44.3% CAGR |
| Share of Top 5 Players | 50% |
Rising Identity and Data Theft Activities to Surge Demand for Cryptographic Ledger Solutions
In the BFSI segment, product utility is accelerating due to the rising adoption of digital ledger technology. This has been key to ensure the confidentiality of users’ financial information and identity. Blockchain technology has emerged as being vital to international transactions, and digital finance platforms. Such factors are predicted to collectively facilitate market growth during the forecast period.
Scarcity of Skilled Professionals Might Impede Market Growth
Due to technological advancement and awareness, organizations of varying capacities have become open to adopt blockchain technology. However, a prominent hurdle that fazes organizations is the unavailability of skilled professionals. Hence, key players need to focus on bolstering the network of skilled professionals, by providing on-site training and maintenance services. By overcoming skilled labor-related bottlenecks, key players can ensure seamless market expansion during the forecast period.
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| Market Statistics | Details |
|---|---|
| H1, 2022 (A) | 39.3% |
| H1, 2023 Projected (P) | 41.0% |
| H1, 2023 Outlook (O) | 42.5% |
| BPS Change: H1, 2023 (O)-H1, 2023(P) | (+) 150 ↑ |
| BPS Change : H1, 2023 (O)-H1, 2022(A) | (+) 316 ↑ |
The essence of this technology lies in the desire of the masses to have de-centralization and transparency in any activity, especially transactions and finances.
After coming under scrutiny, various multinational corporations are implementing blockchain for their supply chain. An example of this is Unilever, which is now using a blockchain supply chain to ensure that the palm oil they are using for their products is not being sourced illegally. Similarly, several software solution vendors have started providing blockchain solutions and various cryptocurrencies continue in 2023 as well.
H1,2023(O)-H1,2022(A) witnessed a growth of 316 BPS points. Blockchain has experienced growth in its market since people discovered that it could be implemented for various purposes. NFT (Non-fungible tokens) is the latest application of Blockchain.
NFTs are works of digital art which use the blockchain to validate the originality of the work. 2021 witnessed a massive trend of NFT creation and purchase. Investments in various cryptocurrencies are a driver for market growth.
Significant Rise in the Use of Blockchain Technology in Diverse Industry Verticals
From 2017 to 2022, the global blockchain technology market registered significant gains, experiencing an impressive CAGR worth 42.8%
Blockchain technology has evolved from a public ledger to maintain transactions to currency for trade at a global level in the past decade. Hence, as per FMI’s latest analysis, the blockchain market is expanding at an unprecedented rate, possibly paving way for a digital revolution in the decade that follows.
Short Term (2023 to 2026): Blockchain’s usage has evolved and is used where transactional records are accumulated, stored, and shared across all the network participants that cannot be tampered with. Thus, its immutable nature could win tremendous popularity in a wide range of sectors that are constantly seeking operational efficiency.
Mid Term (2026 to 2029): Blockchain technology made the biggest disruption of the decade in the banking industry with Bitcoin, making the term synonymous with the sector. Hence, Bitcoin could generate a ripple effect in sectors such as oil and gas, retail, transportation, and logistics. The sustained influence of bitcoin technology on these sectors could drive market growth during this phase.
Long Term (2029 to 2033): Securing one’s e-identity could emerge as a pressing concern towards the end of the forecast period. Hence, government bodies are also expected to widely adopt blockchain technologies for their e-citizenship programs. As data management evolves to become an entirely digital process, both public and private bodies are anticipated to invest heavily in developing blockchain technology.
Considering these factors, the market is projected to witness high growth over the coming years, registering a CAGR of 44.3% to reach USD 181.1 billion by 2033.
Principal Consultant
High Need for Security in Transactions Driving Blockchain Technology Solution Demand
The unique feature of 'append only' has made blockchain immutable and tamper-proof, making it a safe way to record transactions. The retail industry, especially brands engaging in the trade of luxury goods, is expected to integrate this technology to evolve into an efficient business model.
Blockchain technology has presented luxury brands with unique solutions to tackle counterfeiters and entry to fraudulent products in the market. For instance, IBM’s TrustChain will rightly indicate the provenance of jewelry from mine to store, ensuring that the supply chain remains fraud-free. The ability to track a piece of jewelry with a unique special code will present the history of the product, right from the country of origin to the seller and the reseller.
The trust mechanism at play, promising the authenticity of the jewel, is expected to be the USP of this technology. Elimination of paperwork promises to make the system of procurement and sale more efficient every step of the way.
Uncertain Regulatory and Compliance Environment Restraining Market Growth
In the blockchain technology market, regulatory instability is still a problem. At the moment, the lack of rules and the ensuing ambiguities are some significant barriers to blockchain implementation in most sectors. One of the challenging aspects of upgrading payment solutions is regulatory acceptance.
The regulatory position of blockchain technology is questionable due to challenges such as standardization and compatibility. Moreover, the blockchain technology market is heavily impacted by unsettled rules. Currently, no agreed set of standards exist for carrying out cryptocurrency transactions.
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North America is expected to hold the prominent share of the global blockchain technology market during the forecast period. The market expansion is likely to be fueled by the implementation of blockchain technology and the existence of numerous manufacturers offering secure blockchain solutions.
Companies in the region are progressively employing security and blockchain solutions to promote business continuity by allowing data protection, avoiding cyber-attacks and economic piracy, and protecting data security and privacy.
Innovative Product & Service Offerings to Boost Demand for Digital Ledger Technology
The United States hosts almost all leading companies operating in the global blockchain technology market. High investments in research and development activities and the rising IT sector are fueling demand for digital ledger technology in the United States.
A high focus on technology innovation and heavy procurement of digital ledger technology in BFSI, healthcare, transportation, and logistics industries is further driving the market growth in the country.
During the forecast period, the United States market is expected to record a CAGR of 46.1% to attain a valuation of USD 97.7 billion by 2033.
Huge Government Investments in Blockchain Network Development Projects Propelling Market Expansion
The utilization of blockchain networks has been promoted by government agencies in China. This is mostly owing to the advantages that this technology provides to a variety of businesses, such as enhanced transparency and efficiency. Furthermore, government initiatives and partnerships with commercial organizations to incorporate blockchain networks to safeguard present systems are boosting blockchain technology demand in China. The market in China is anticipated to continue offering the most lucrative opportunities for revenue generation throughout the forecast period.
During the forecast period, the China blockchain market is anticipated to capture a CAGR of 33.9%.
| Region | North America |
|---|---|
| Country | United States |
| CAGR | 46.1% |
| Market Value (2033) | USD 97.7 billion |
| Region | Europe |
|---|---|
| Country | United Kingdom |
| CAGR | 31.6% |
| Market Value (2033) | USD 10.3 billion |
| Region | Asia Pacific |
|---|---|
| Country | China |
| CAGR | 33.9% |
| Market Value (2033) | USD 5.0 billion |
| Region | Asia Pacific |
|---|---|
| Country | South Korea |
| CAGR | 35.2% |
| Market Value (2033) | USD 1.1 billion |
| Region | Asia Pacific |
|---|---|
| Country | Japan |
| CAGR | 29.7% |
| Market Value (2033) | USD 2.3 billion |
Demand from Various Organizations for Supply Chain Management Growing for Increased Transparency
Supply chain management is expected to account for a 28.4% share of the blockchain technology market in 2023. The decentralization, clarity, and immutability qualities of blockchain technology make it an ideal tool for saving the supply chain management sector.
Supply chain management using blockchain technology is projected to present potential, reducing corruption on expensive products like prescription medications and gems. The technology could assist businesses in reducing the impact of fake items on consumers. As a result, supply chain management is predicted to become an important application for this market.
BFSI to Hold Largest Market Share Owing to High Adoption of Digital Ledger Solutions
Demand, procurement, and lifecycle analysis based on various use cases of blockchain technology suggest supply chain management-related applications across BFSI. BFSI is among the most heavily invested enterprises studying blockchain technology.
Blockchain technology providers are recording considerable procurement from the demand side for supply chain management applications. Vendors are striving to target customers requiring decentralized finance to open up an additional stream of income.
A decentralized offering, especially in the banking sector, can reduce the chances of fraud by eliminating intermediaries. Blockchain effectively removes vulnerability to cyber-attacks, breaches, and theft, making it a safer choice.
| Start-up Company | Fireblocks |
|---|---|
| Country | United States |
| Description | Fireblocks is a startup that focuses on blockchain security solutions. The company offers various security solutions to clients with cryptocurrencies, while also assisting them in managing their digital assets. |
| Start-up Company | Sorare |
|---|---|
| Country | France |
| Description | Sorare is a fantasy soccer platform that is based on blockchain technology. Hence, Sorare doubles as a digital marketplace, where users can trade, sell or buy digital cards. |
Blockchain Start-ups Make Huge Splash in the Market as Existing Players Reap Big
The global blockchain market is characterized by the presence of both, established technology provider companies, and new entrants trying to create a space for themselves in this competitive market. With blockchain technology still under development, blockchain start-ups are strategizing to form long-term relationships with technology integrators to ensure consistent revenue generation in the long run.
| Company | Oracle Corporation |
|---|---|
| Details | Oracle Corporation is a multinational American company. It primarily focuses on developing computer technology-based solutions. |
| Recent Developments | In April 2021, Oracle Corporation launched the innovative Enterprise distributed ledger technology (DLT). The product finds diverse utility in healthcare, finance as well as logistics. This is accompanied by digital solutions such as verifiable, and unalterable health credentials. |
| Company | Accenture |
|---|---|
| Details | Accenture plc is an Irish-American multinational company, primarily providing IT solutions, globally. It is also a Fortune 500 company. |
| Recent Developments | In October 2020, Accenture and Digital Ventures, Siam Commercial Bank's fintech unit, released the world's first fully featured procure-to-pay blockchain technology to help Thai firms expedite buying process, transactions, and funding acquisition. |
| Company | Amazon Web Services |
|---|---|
| Details | Amazon Web Services primarily provides solutions related to cloud computing platforms and APIs for individuals as well as private and government entities. It is a subsidiary of Amazon. |
| Recent Developments | In March 2021, On Amazon Managed Blockchain, Amazon Web Services (AWS) announced the broad availability of Ethereum, a popular decentralized blockchain technology that formed a peer-to-peer network allowing members to transact without the need for a trusted central authority. Decentralized finance (Defi), a network of financial applications based on blockchain networks, is one of the most prominent use cases. |
In 2023, the worldwide market value could be around USD 4.6 billion.
The overall market valuation is anticipated to reach nearly USD 181.1 billion by 2033.
The United States leads the global market and could be valued at USD 97.7 billion by 2033 end.
China is expected to capture a 33.9% CAGR through 2033.
IBM, Amazon, Microsoft, and Oracle are some top players in the present global market.
1. Executive Summary | Blockchain Technology Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Solution 5.1. Applications 5.2. Blockchain Platforms 5.3. Middleware 6. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Use Case 6.1. Decentralized Finance 6.2. Digital Identity 6.3. Payments and Money 6.4. Smart Contracts 6.5. Supply Chain Management 6.6. Trading, Commerce and Exchange 7. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Enterprise Size 7.1. Large Enterprises 7.2. SMEs 8. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Industry 8.1. BFSI 8.2. Government 8.3. Healthcare 8.4. Hospitality and Travel 8.5. Media and Entertainment 8.6. Retail and e-commerce 8.7. Transportation and Logistics 8.8. Others 9. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. East Asia 9.5. South Asia & Pacific 9.6. Middle East and Africa 10. North America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 14. South Asia & Pacific Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 15. Middle East and Africa Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. IBM 18.2. Amazon Web Services, Inc. 18.3. Microsoft 18.4. SAP 18.5. Oracle 18.6. Bitfury Group Limited 18.7. Cegeka 18.8. Guardtime 18.9. CONSENSYS 18.10. PixelPlex 18.11. LimeChain 18.12. Accubits Technologies 18.13. SoluLab 19. Assumptions & Acronyms Used 20. Research Methodology
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