The blockchain market size is expected to grow from USD 411.5 Million in 2017 to USD 7,683.7 Million by 2022, at a Compound Annual Growth Rate (CAGR) of 79.6%. The key factors including reduced total cost of ownership, faster transactions, simplified business process with transparency and immutability, and rising cryptocurrencies market cap and ICO are expected to drive the overall growth of the market.
The application and solution provider is expected to have the largest market share during the forecast period
These application and solution providers in the blockchain market deliver significant value to the businesses by reducing duplications in transactional data, providing periodic reconciliation and authentication for commercial and regulatory reasons. These vendors provide international online money transfer network and cloud-based services using blockchain that allows people to do transactions more easily. Application and solution providers have the potential to deliver disruptive outcomes and reshape digital businesses by providing distributed ledger technology to multiple industry verticals.
Digital identity is estimated to grow at a high CAGR during the forecast period
The digital identity management is said to be the fastest-growing application in the blockchain market, as it eliminates the need for central authority and third-party, thereby making it easier for the individuals to manage and control over personal information and access. The vendors operating in the global market are focusing on developing commercially feasible solutions. Moreover, the focus of dominant players in the market is toward the development of blockchain-based identity management solutions for financial transactions and personal use cases.
BFSI is expected to dominate the market; and real estate sector is estimated to grow with the highest CAGR during the forecast period
BFSI industry has realized the significance of distributed ledger technologies, which help secure the transaction for the customers. In addition, the technology shift from centralized infrastructure management to the distributed ecosystem is paving the way for new business models in payments, internet banking, and financial transaction technologies. However, the real estate majorly works on traditional paper records to register land and property ownership which makes the process slow, time-consuming, and prone to fraud. Blockchain integration constantly records and shares information to address traditional process inefficiencies in the commercial real estate industry. The distributed ledger technology providers offer a system in which anyone can access and record information, eliminate the middlemen and provide overall transparency to the buyer, seller, and government bodies involved in the process. Companies operating in the market provides blockchain platforms which are powered by tokens to provide lifelong access to office facilities.
North America is estimated hold the largest market share, followed by Europe; and APAC is expected to grow at the highest CAGR during the forecast period
The global market is segmented on the basis of regions that includes North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America. North America is home for the majority of industries with a large operation base, and has witnessed a prominent implementation of smart contracts, documentation, and payment applications in most of its industries especially BFSI and healthcare and life sciences. The region is expected to be the largest for the adoption of blockchain solutions, due to the increased funding on the development of distributed ledger technologies, to provide customers with transparency and faster transactions. Increasing penetration rate in multiple industries including transportation and logistics, retail and eCommerce, media and entertainment, real estate, and IT and Telecommunication verticals are expected to drive the market growth. Moreover, financial institutions in the APAC region are heavily investing in designing a permissioned blockchain network to streamline their internal operations and minimize costs. The integration of the technology in these sectors is changing the way businesses are conducted across varied industry verticals.
The blockchain market vendors include Abra (US), AlphaPoint (US), Amazon Web Services, Inc. (US), Bitfury Group Limited (US), BTL Group Ltd. (Canada), Chain, Inc. (US), Coinbase (US), Digital Asset Holdings LLC. (US), Earthport PLC (UK), Factom (US), International Business Machines Corporation (US), Microsoft Corporation (US), and Ripple (US).
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