Global Cryptocurrency Market: Overview

Cryptocurrency market is currently driven by fast, global, and secure transactions processing, low cost of remittance offered by cryptocurrencies, and growth in venture capital investments. Cryptocurrencies use cryptography system to control the creation of additional units and to secure the integrity of transactions. In cryptography, only the owner with private key can send the cryptocurrencies, which make the transactions highly secure and authentic. Further, transactions get confirmed within minutes irrespective of physical location of sender and receiver because of an extensive geographically diversified miner network base.

In traditional banking system, involvement of number of regulator entities and requirement of adhering to numerous compliances, the cost of sending money internationally increases exponentially. According to the statistics provided by World Bank, the average cost of sending remittances across borders through traditional market players such as Money Gram, TransferWise, or Western Union is around 7% to 10%. In developing countries such as South Africa, remittance charges are even higher, up to 20%. On the other hand, cryptocurrency dis-intermediates involved banks and currency exchanges from the settlement process and further reduce down the settlement costs. In 2016, the global cryptocurrency market was valued at US$ 574.3 mn and is expected to reach US$ 6,702.1 mn by 2025, expanding at a CAGR of 31.3% during the forecast period from 2017 to 2025.

cryptocurrency market

Bitcoin Poised hold the Highest Share as Various Industrial Verticals Show Keen Interest

The global cryptocurrency market has been segmented on the basis of component, type, and region. On the basis of component, the market is segmented into hardware and software. The hardware segment is further classified into FPGA, GPU, ASIC, wallet, and others. Software segment is divided into mining platform, blockchain, coin wallet, and exchange. In 2016, hardware segment accumulated to the highest market share and is expected to continue its dominance over the forecast period. Nonetheless, software segment is projected to witness highest growth in coming years. By type, the market has been segmented into various cryptocurrencies such as Bitcoin, Ethereum, Ripple (XRP), Litecoin, Dashcoin and others. In terms of market share, bitcoin cryptocurrency segment is projected to have highest market share over the forecast period owing to its highest adoption in numerous applications and industry verticals. Nonetheless, Ethereum is anticipated to witness highest CAGR growth in coming years due to its associated benefits such as smart contract technology, electronic cash and Proof of Stake (PoS).

Europe Shows Dominance with Strong Presence of Mining Pools

In 2016, Europe held highest revenue share of global cryptocurrency market with Germany contributing the maximum revenue and it is expected that the region will show significant growth over the forecast period. Presence of numerous mining pools and adoption of cryptocurrencies as valid currency by numerous retailers are projected to have strong impact on market growth in European countries. In North America, highest revenue contributing countries includes the U.S., and Canada. Significant growth in number of Initial Coin Offerings (ICOs) in the region especially in the U.S. is key factor for expected substantial growth shown by North America.  High adoption rate of virtual currencies across the countries namely China, Singapore, and Japan in the region is expected to drive the Asia Pacific cryptocurrency market. Gulf Cooperation Council (GCC) countries including Saudi Arabia and United Arab Emirates (UAE) and South Africa are the highest revenue generating regions from MEA. South America cryptocurrency market is driven by inflation and payment problems faced by various economies in the region. Brazil is the highest revenue contributing country to the cryptocurrency market from the region.

The company profiling of key players profiled in the global cryptocurrency market includes company overview, major business strategies adopted, SWOT analysis and market revenues for year 2014 to 2016. The key players profiled in the global cryptocurrency market includes Intel Corporation, Microsoft Corporation, NVIDIA Corporation, BitFury Group Limited, Alphapoint Corporation, Advanced Micro Devices, Inc. Xilinx Inc., BitGo, Ripple and BTL Group Ltd.

Global Cryptocurrency Market: Snapshot

The “Cryptocurrency Market (Component – Hardware (FPGA, GPU, ASIC, Wallet, Others), Software (Mining Platform, Blockchain, Coin Wallet, Exchange); Type – Bitcoin, Ethereum, Ripple (XRP), Litecoin, Dashcoin, Others) – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2017 - 2025”, report provides analysis of the cryptocurrency market for the period 2015–2025, wherein the years from 2017 to 2025 is the forecast period and 2016 is considered as the base year. Data for 2015 has been included as historical information. The report covers all the major trends and technologies playing a major role in the cryptocurrency market growth over the forecast period. It highlights the drivers, restraints and opportunities expected to influence the market growth during this period. The study provides a holistic perspective on the market’s growth in terms of revenue (in US$ Mn) across different geographical regions, namely North America, Europe, Asia Pacific, Middle East & Africa and South America. Report highlights the key trends affecting the market on a global scale. Furthermore, region wise prominent countries/regions covered in the report includes - the U.S, Canada, Germany, France, Netherlands, the U.K., Singapore, China, Japan, GCC, South Africa and Brazil.

Global Cryptocurrency Market: Drivers and Restraints

The market overview section of the report showcases the market dynamics and trends which includes drivers, restraints, opportunities that influence the current nature and future status of this market. It also provides an overview about the key market indicators given across the five geographical regions. Under the porter’s five forces analysis section, a brief analysis of the level of competition within the cryptocurrency industry is given and business strategy is provided in order to determine the competitive attractiveness and intensity of the cryptocurrency market. The report also includes key industry developments covering significant advances made by leading market players over the period of time.

Global Cryptocurrency Market: Segmentation

On the basis of component, the market has been divided into hardware and software. The hardware segment is sub segmented into FPGA, GPU, ASIC, wallet, and others. The software segment is further classified in to mining platform, blockchain, coin wallet, and exchange. In terms of market share, in 2016, hardware was the highest revenue generating segment and software segment is expected to witness highest CAGR growth over the forecast period from 2017 to 2025.

By type, the global cryptocurrency market is divided in to Bitcoin, Ethereum, Ripple (XRP), Litecoin, Dashcoin, and others. Bitcoin segment is expected to hold highest market share over the forecast period owing to its significant acceptance in various applications.

Global Cryptocurrency Market: Competitive Landscape

The report provides competitive landscape of the cryptocurrency market, thereby listing out all the major players according to their geographic presence, market attractiveness and recent key developments. The competitive landscape section of the report gives an overview about the market share of several key players for the year 2016. The cryptocurrency market data estimates are the result of our in-depth secondary research, primary interviews and in-house expert panel reviews. These market estimates have been analyzed by taking into account the impact of different political, social, economic, technological, and legal factors along with the current market dynamics affecting the market growth. Factors including market position, offerings and R&D focus are attributed to company’s capabilities. This section also identifies and includes various recent developments carried out by the leading players. Moreover, key takeaways section provided at the end of competitive landscape section would help the operating companies to make the best move in the market.

Intel Corporation, Microsoft Corporation, NVIDIA Corporation, BitFury Group Limited, Alphapoint Corporation, Advanced Micro Devices, Inc. Xilinx Inc., BitGo, Ripple and BTL Group Ltd. are few of the key players which have been profiled in this study. Details such as financials, business strategies, SWOT analysis, and other such strategic information pertaining to these players has been duly provided as part of company profiling.

The global cryptocurrency market is segmented as below:

Global Cryptocurrency Market, By Component

  • Hardware
    • FPGA
    • GPU
    • ASIC
    • Wallet
    • Others 
  • Software
    • Mining Platform
    • Blockchain
    • Coin Wallet
    • Exchange

Global Cryptocurrency Market, By Type

  • Bitcoin
  • Ethereum
  • Ripple (XRP)
  • Litecoin
  • Dashcoin
  • Others

Global Cryptocurrency Market, By Geography

  • North America
    • The U.S.
    • Canada
    • Rest of North America
  • Europe
    • Germany
    • France
    • Netherlands
    • The U.K.
    • Rest of Europe
  • Asia Pacific
    • China
    • Singapore
    • Japan
    • Rest of Asia Pacific
  • Middle East and Africa (MEA)
    • South Africa
    • GCC
    • Rest of Middle East and Africa
  • South America
    • Brazil
    • Rest of South America