The “Blockchain Market Report 2021 – Global Forecast to 2026” has been added to ResearchAndMarkets.com’s offering.
The Blockchain market size is projected to grow from USD 4.9 billion in 2021 to USD 67.4 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 68.4%
The major driving factors contributing to the high growth rate of blockchain market include increasing venture capital fundings and investment in blockchain technology; extensive use of blockchain solutions in banking and cybersecurity; high adoption of blockchain solutions for payment, smart contracts, and digital identities; and rising government initiatives.
By component, the services segment to register the highest growth rate during the forecast period
Based on component, the global blockchain market is segmented into platform and services. Platform refers to the standalone platform that cannot be further segmented. Blockchain platform in the market enables customers to set up private, public, and consortium-based blockchain environments and provide them with capabilities to develop their own blockchain applications and solutions.
These platforms enable people, products, applications, and services to interoperate across the blockchain network, cloud providers, and organizations. The services segment includes various services required to deploy, execute, and maintain blockchain platform in an organization, including technology advisory and consulting, development and integration, and support and maintenance.
The platform segment is expected to witness high adoption during the forecast period as the enterprises are expected to realize the various benefits offered by the technology, including reduced value chain cost, increased security, and faster operations enabling them to gain a leading edge over competitors. The services segment is expected to grow at a higher CAGR during the forecast period.
The growth of the services segment would be dependent on the adoption of blockchain platform in the market during the forecast period. Services including technology advisory and consulting, development and integration, and support and maintenance form a critical component of the blockchain solution deployment enabling organizations to effectively utilize blockchain tools and support their core business operations effectively.
By Organisation size, the SME’s to register the highest growth rate during the forecast period
The blockchain market has been segmented by organization size into SMEs and large enterprises. These organizations are categorized based on the number of employees working with them and on global standards. Enterprises of all sizes across the globe are focusing on the blockchain technology to revolutionize the traditional systems in their infrastructure and enhance the customer experience.
With the growing need to improve business efficiencies and maintain transparency in the business process, SMEs and large enterprises are focusing on leveraging advanced blockchain solutions for various applications, such as smart contracts, payments, compliance management, supply chain management, and loyalty and rewards management.
Organizations with less than 1,000 employees are categorized as SMEs. SMEs face several disadvantages, including high barriers to entry and lower protection from market conditions. The cost of operation is high due to the requirement of several intermediaries for trading across regions, which limits the growth of SMEs with limited resources. The blockchain technology can prove to be an asset in such scenarios, enabling an enterprise to reduce its cost by eliminating these intermediaries.
Another area where SMEs can take advantage of the blockchain technology in their basic day-to-day operations is manual or semi-automatic processes, including invoicing, inventory, and payroll. For instance, smart contracts, a critical capability offered by the blockchain solution can prove to be more economical, helping SMEs streamline their operations cost-effectively and at a faster rate.
Premium Insights
- The Increase in Venture-Capital Fundings and Government Initiatives to Drive the Growth of the Blockchain Market
- Platforms to be the Larger Market in 2021
- Technology Advisory and Consulting Services to Account for a Larger Share in 2021
- Application Providers to Account for a Larger Market During the Forecast Period
- Hybrid Segment to be Larger During the Forecast Period
- Large Enterprises to Witness Higher Use of Blockchain During the Forecast Period
- Banking, Financial Services, and Insurance to Lead the Blockchain Market During the Forecast Period
- Asia-Pacific to Emerge as the Best Market for Investments in the Next Five Years
Drivers
- Increase in Venture Capital Funding and Investments in Blockchain Technology
- Growth in Need of Blockchain Technology in Retail and Supply Chain Management for Transparency and Security in Transactions
- Simplification of Processes Along with Transparency, Security, and Immutability
- Lower Operational Costs
- Uncertain Regulatory and Compliance Environment
- High Costs of Implementing Blockchain Technology
- Rise in Government Initiatives to Boost Demand for Blockchain Platform and Services
- Amalgamation of Blockchain, Iot, and Ai
- Extensive Use of Blockchain Solutions in Banking and Cybersecurity
- High Adoption of Blockchain Solutions for Payments, Smart Contracts, and Digital Identities
- Rise in Demand for Real-Time Data Analysis, Enhanced Visibility, and Proactive Maintenance
- Potential of Blockchain Technology in Novel Industries
- Security, Privacy, and Control of Blockchain Transactions
- Limited Availability of Technical Skillsets to Implement Blockchain Technology
- Opposition from Incumbents
Steps Involved in the Implementation of Blockchain Technology
Comparison Between Centralized/Permissioned Versus Decentralized/Permissionless Blockchain
- Types of Blockchain Technology
- Private Blockchain
- Public Blockchain
- Permissioned/Hybrid Blockchain
- Component/Hardware Suppliers
- Planning and Design
- Infrastructure and Deployment
- Solution and Service Providers
- System Integrators
- Sales and Distribution Channels
- End-users
- Blockchain and Internet of Things
- Blockchain and Cloud
- Blockchain and Artificial Intelligence
- Blockchain and Supply Chain
- Big Data Analytics
- Smart Dubai Initiative Uses Blockchain Technology for Smart Transformation
- Id2020 Partnership
- Blockchain Project for Supply Chain and Inventory Management
- Adoption of Blockchain Technology Esolutions in the Estonian Government
- The Use of Blockchain for Smart Contracts
- IBM (NYSE:IBM) Tied Up with Walmart (NYSE:WMT) (Us) to Track Pork in China and Mangoes in the Us for Ensuring Food Safety
- Blockchain for Know Your Customer Compliance in Retail
- Blockchain Technology for Automated Customer Services
- Blockchain Project for Supply Chain and Inventory Management
- Use Case 1: to Reduce the Wastage of Food by Improving Food Safety and Traceability, and to Help Its Online and Offline Consumers Across the Globe, by Ibm
- Use Case 2: Oracle (NYSE:ORCL) to Leverage Innovative Technologies Such as Blockchain, Ai, and IoT to Transform Supply Chain Operations in the Shipping Industry
- Use Case 3: Blockchain Helps Rcs Global Trace Responsibly Produced Raw Materials by Ibm
- Use Case 4: Carrefour (PA:CARR) Sa Joined Ibm’s Blockchain-Based Food Trust Network
- Use Case 5: The Virgin Diamond Used Netobjex’s Digital Twin Platform
- Use Case 6: Curry & Company Teamed Up with Intel’s Integrated Blockchain-Based IoT Solution to Track Perishable Goods
- Use Case 7: Bumble Bee Seafoods Collaborated with Sap to Trace the Fish Supply Chain in an Indonesian Village
- Use Case 8: Group of Banks Leveraged Ibm’s Blockchain Platform for Ease in Making Global Payments (NYSE:GPN)
- Use Case 9: Saudi Customs Used Blockchain Technology for Pilot Shipment
- Use Case 10: Icici Bank (NYSE:IBN) and Emirates Nbd Partnered with Edgeverve Finacle to Pilot the First Blockchain-Based Network
- Use Case 11: Arab Jordan Investment Bank (Ajib) Leverages the Oracle Blockchain Platform for Cross-Border Money Transfers
- Enterprise Ethereum Alliance
- Hyperledger Consortium
- Global Blockchain Business Council
- Blockchain Collaborative Consortium
- R3Cev Blockchain Consortium
- Continuous Linked Settlement Group
- Global Payments Steering Group
- Financial Blockchain Shenzhen Consortium
- Cu Ledger
- Wall Street Blockchain Alliance
- IBM
- Amazon (NASDAQ:AMZN) Web Services
- Sap
- Intel (NASDAQ:INTC)
- Oracle
- Huawei
- Accenture (NYSE:ACN)
- Wipro (NYSE:WIT)
- Bitfury
- Chain
- Blockcypher
- Guardtime
- Cegeka
- Symbiont
- Bigchaindb
- Applied Blockchain
- Auxesis Group
- Spinsys
- Infosys (NYSE:INFY)
- Ntt Data
- Factom
- R3
- Consensys
- Leewayhertz
- Start-Up Profiles
- Recordskeeper
- Stratis
- Blockchain Foundry
- Blockpoint
- Dragonchain
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