In the recently upgraded market intelligence report, FMI shares that the smart contract market is predicted to be valued at USD 230.2 million in FY 2024. The market is expanding at a robust 23.80% CAGR over the next ten years and lead the market to USD 1,946.78 million by 2034.
In the continuously evolving landscape of blockchain technology, smart contracts or digital contracts have emerged as a game changer. These tamper-proof, self-executing digital agreements have transformed the ways transactions are made, and processes are automated and have also redefined the boundaries of conventional legal agreements.
Smart contracts have undergone remarkable growth, bringing advancements that ripple through application industries and challenge conventional norms.
| Attributes | Key Insights |
|---|---|
| Smart Contract Market Size (2024E) | USD 230.2 million |
| Market Valuation (2034F) | USD 1,946.78 million |
| Value-based CAGR (2024 to 2034) | 23.80% |
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| Leading Contract Type | Smart Legal Contracts |
|---|---|
| Value Share (2024) | 26.20% |
Smart legal contracts account for 26.20% of the global smart Contract market. The reason behind their rising use is certainly their speed and efficiency. Upon meeting the pre-requisite requirements, the execution of contract terms happens immediately, as opposed to waiting for manual approval or other mundane procedures. This helps businesses save their valuable resources and time, and divert their funds elsewhere more important.
Recent developments in smart legal contracts like the innovation of automated contract templates are increasing the efficiency of the contract process. These solutions are high in demand among legal teams that do not have a programmer in their team.
| Leading Application | BFSI |
|---|---|
| Value Share (2024) | 36.20% |
The BFSI is a primary as well as frequent user of smart contract technologies. The reason backing this scenario is the rapid transactions and the exchange of assets required daily in this industry. To add to this, the advancements in the concept of cryptocurrencies, decentralized finance (DeFi), and various other applications and platforms that are associated with cryptocurrency are also contributing to this market size.
Based on these elements, the BFSI sector is going to achieve a value share of 36.20% by the year 2024.
Principal Consultant
| Countries | Forecast CAGR (2024 to 2034) |
|---|---|
| The United States | 21.70% |
| Germany | 15.10% |
| Japan | 16.0% |
| China | 25.90% |
| Australia & New Zealand | 19.90% |
The United States smart contract market is showing an exemplary growth rate. FMI has estimated that this market has the potential to expand at a CAGR of 21.70%. Execution of the latest technological breakthroughs in the United States is laying the foundation for exciting growth later on.
Technologies supported by blockchain technology, such as NFTs and cryptocurrency are gaining a lot of attention in the country. The trend is so big in the United States that even businesses are trying to comprehend ways in which they can exploit the advantages of digital assets, NFTs, and cryptocurrencies.
Setting up platforms to effectively deal with digital assets is one of the potential outcomes for these firms to appeal to a section of people who are invested in these technologies. This market situation is creating a favorable environment for the smart Contract market to flourish.
Market growth in Germany is forecast to expand at a CAGR of 15.10% over the forecast period. Expansion of this sector is led by growth in enterprises that provide blockchain solutions in the country.
In the German economy, a government entity- the German Energy Agency (DENA) -is leading the DIVE project to maximize digital identities to incorporate and handle renewable energies under the decentralized landscape. This project, as reported by Energy Web, is concentrated on setting up reliable and secure digital identities for systems and devices in the energy sector.
Within this project, Energy Web will facilitate by developing standardized representation and description forms for smart contracts under DIVE. This consists of classification within the energy industry context as well as execution outputs, inputs, logic, and conditions of smart contracts.
Under this project, the smart contracts provided under free licenses, and the development of ‘Smart Contract Register’ similar to an ‘app store’ to be used for decentralized applications shall set the framework for an independent technology library.
With many use cases of smart contracts emerging across end-use industries in Germany, the market is anticipated to witness accelerated growth.
China’s smart contract industry is predicted to expand at a CAGR of 25.90% over the estimated period. A top Chinese lawmaker, in March 2024, pushed for clear rules regarding smart contracts as inconsistencies emerge from the present regulations and changing requirements of new technologies.
Numerous developments are taking place in the Chinese market, which is fueling market to expand at an impressive rate. In February 2024, it was announced that the Chinese city of Shenzhen collaborated with the Agricultural Bank of China to execute digital yuan smart contracts for the pre-payment of the cars.
According to Jing Bao, a local trusted newspaper, the first batch of consumers bought new automobiles with digital yuan-backed smart contracts in early February. Measures were taken to protect buyers’ deposits and streamline the purchasing experience.
To ease the buyers’ anxiety while paying a large amount of sum before receiving the order, an option to submit the payment at a dealership equipped with e-CNY pre-payment was also made.
In Japan, the smart contract market is being driven at a CAGR of 16% over the forecast period. Potential applications of smart contracts, a hallmark feature of blockchain technology, in supply chain management, finance, and more. However, uncertainties surrounding their legal validity, vulnerabilities, and privacy concerns are restricting their widespread application and effectiveness.
Progress in the market is also propelled by many initiatives by industry players. In September 2023, for instance, SBI Holdings announced that it would be working with TradeFinex, a UAE firm, on a Japanese joint venture to boost the adoption of the enterprise blockchain platform on XDC Network. This venture included smart contract deployment.
Australia and New Zealand’s smart contract market is anticipated to expand at a CAGR of 19.90% over the forecast period. The countries in combination have a lot of scope, which is attracting many investors into the market.
Recent developments in these markets show the progress that has been achieved. In March 2024, Chainlink labs and Australia and New Zealand Banking Group collaborated to connect blockchain networks, such as Avalanche and Ethereum for on-chain settlement solutions. This collaboration highlights how smart contracts, tokenization, and smart contracts can enhance the rails of the global financial system.
GoCoin
GoCoin is one of the leaders in bitcoin, cryptocurrency, blockchain, digital finance, Ethereum, etc. The platform offers fast and convenient cryptocurrency settlements or fiat, with a 1% fee on most transactions.
Avalanche
Avalanche, a platform for smart contracts, regularly finalizes transactions and scales infinitely in less than one second. Its consensus protocol and latest Subnets facilitate Web3 developers to conveniently release highly scalable solutions.
IBM
IBM, an abbreviation of International Business Machines Corporation, is a United States company. It is a world-renowned technology innovator, that leads advances in automation, AI, and hybrid-cloud solutions to manage businesses.
Recent Developments that are Moulding the Marketspace
Given below is the latest news that holds value in smart Contract market. They also indicate the trends that are in vogue.
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Adjacent Study of Healthcare Smart Contracts Market
Market Competition Among Key Players
Category-wise Market Analysis
Current projections of the market indicate a valuation of USD 230.2 million in 2024.
Looking ahead to 2034, the current forecast projects a CAGR of 23.80% for the industry.
FMI predicts the market to reach USD 1,946.78 million by the year 2034.
The BFSI segment is predicted to hold a significant market share during the forecast period.
The United States, China, Australia, and New Zealand are predicted to offer lucrative opportunities for investors and stakeholders.
Avalanche, GoCoin, and Sharedeum Foundation are powerful players in the smart contract industry.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Contract Type 5.1. Smart Legal Contracts 5.2. Decentralized Autonomous Organizations (DAO) 5.3. End User Logic Contracts (ALC) 5.4. Distributed End Users (DApps) 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Enterprise Size 6.1. Small and Medium Enterprises 6.2. Large Enterprises 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End User 7.1. BFSI 7.2. Government 7.3. Healthcare 7.4. Others 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 8.1. North America 8.2. Latin America 8.3. Western Europe 8.4. Eastern Europe 8.5. South Asia and Pacific 8.6. East Asia 8.7. Middle East and Africa 9. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 10. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 11. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 12. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 13. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 14. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 15. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. IBM 18.2. Sharedeum Foundation 18.3. Amazon 18.4. Oracle 18.5. Infosys 18.6. Tata Consultancy Services 18.7. Chainlink 18.8. Waves 18.9. Solana 18.10. Nem 18.11. RSK 18.12. Algorand 18.13. GoCoin 18.14. Avalanche 18.15. Stratis 18.16. Monax Industries 19. Assumptions & Acronyms Used 20. Research Methodology
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Smart Contract Market
