The global blockchain technology market faces a high degree of competition due to presence several players, states Transparency Market Research. R3, Chain Inc., and IBM collectively hold a leading share in the global market. As of 2015, their overall share amounted to 45.3% in the overall market. These players are expected to focus on acquisitions to widen their consumer base and make value additions to their existing technologies.
According to the latest research report, the global blockchain technology market is expected to be worth US$20 bn by the end of 2024 as compared to US$315.9 mn in 2015. The overall market is anticipated to exhibit a CAGR of 58.7% between 2016 and 2024.
Asia Pacific to Show Robust Growth Rate of 61.3% CAGR between 2016 and 2024
The types of blockchain technologies are public, private, and consortium. Of these, the consortium blockchain technology is expected to rise at a CAGR of 58.9% between 2016 and 2024. The increasing investments in the consortium technology due its advantages such as enhanced flexibility and large scale deployment are expected to fuel the growth of the overall market.
Geographically, the global blockchain technology market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East and Africa. In terms of regions, Asia Pacific blockchain technology market is expected to rise at a CAGR of 61.3% between 2016 and 2024. This regional market is expected to be propelled by the emergence of online payment trend in strengthening economies of China, Japan, and India. The recent wave of demonetization across India is expected to boost the market’s growth significantly in the coming years.
Market Gains Momentum due to Economic Benefits of Blockchain Technology
The global blockchain technology market has been flourishing as it has been a successful solution in eliminating middlemen or third parties to verify transactions while making online payments. Owing to this, blockchain technology has efficiently brought down the cost of third-party data authentication and verification. Thus, the economic benefits of using blockchain technology has truly augmented its demand in the past few years. The market is also expected to gain momentum the technology is known to make transactions speedy for both financial and non-financial services.
The various types of blockchain technologies are also in demand as they decentralize data and remove intermediaries, which help in securing online payment. The absolute automation of these transactions that do not necessitate documentation have made these technologies exceptionally secure. Furthermore, the real-time tracking of transactions averts any chances of frauds or errors while making the online payment. All of these factors are estimated to propel the demand for blockchain technology in the coming years amongst growing number of users.
Stringent Government Norms Make Uptake of Technology Difficult
The only restraint in the global blockchain technology market are stringent government regulations that play a crucial role in deployment of large-scale technologies. For a sustainable development and growth of these technologies in various market, players need to undergo regulatory compliance. It is imperative that they adhere to privacy laws, which vary with each country. Furthermore, the market also faces challenges that are related to technological glitches, upgrades, and replacements.
This review is based on Transparency Market Research’s report, titled “Blockchain Technology Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”
Global Blockchain Technology Market
- Public blockchain
- Private blockchain
- Consortium blockchain
- Financial services
- Non-financial sector
- North America
- The U.S.
- The U.K.
- Asia Pacific
- Middle East and Africa
- South Africa
- South America