The global blockchain market was valued at $2.3 bn in 2016 and is forecast to grow at a modest CAGR of 28.0% between 2017 and 2024, culminating to global revenue of $16.3 bn by 2024.
Industry at a Glance
The global blockchain industry is majorly driven by increasing focus by organizations on transparency, immutability and scalability. Escalating demand across varied end-use sectors including BFSI, government and public sector, automotive, retail, and healthcare among many others is another factor expected to impact market growth favorably.
High efficiency of this technology for asset management, intra-organizational execution, identity management, and transaction processing have led to elevating adoption by enterprises to better manage resources and produce better results. Factors such as lack of awareness pertaining to the blockchain technology paired with uncertain regulatory status may hinder market growth significantly over the next few years.
The industry is witnessing an upcoming trend of financial institutions and venture capitalists investing heavily in blockchain which is also anticipated to propel demand over the forecast period. In addition, several benefits offered by blockchain including cost savings, efficiency, and security is further expected to catapult demand.
“Optimal Price Point (OPP) for Blockchain”
Estimated average blockchain cost – $ xx globally. However, with improving access and availability of options, OPP and range of acceptable Prices (RAP) are going to change. We at Ameri Research continuously track these prices with our proprietary pricing model.
With increasing number of start-ups introducing blockchain, the already existing players in the market are facing challenges regarding prices. Growing technology penetration and technology evolution is another factor instigating industry participants to reduce prices in an attempt to further penetrate into the market.
Enterprise Size Overview
By enterprise size, the market is categorized into Small Medium Enterprises (SMEs) and large enterprise. Large enterprise captured more than 70% of the overall revenue in 2016 and is expected to witness substantial growth over the next few years on account of escalating demand from these organizations to record high volumes of financial and operational transactions. Additionally, SMEs emerged as the fastest growing enterprise segment owing to the mounting emergence of start-ups adopting blockchain to effectively manage virtual transactions.
By application, the market is segmented into payment, exchanges, smart contracts, documentation, digital identity. Payment application segment accounted for the majority market share in 2016 which is estimated to increase over the forecast period. This is ascribed to the rising adoption of online payments and virtual transactions primarily in developing economies of Asia Pacific and Latin America. Governments across the world are increasingly emphasizing on paperless economy which is further anticipated to drive the segment growth significantly over the forecast period.
Based on end-use, the market is classified into BFSI, healthcare, retail, automotive, media & entertainment, and government. BFSI held majority market share in 2016 and is expected to witness robust growth over the next seven years closely followed by retail. This is majorly accredited to snowballing number of online transaction worldwide.
Retail outlets also emphasize on providing online purchase options to customers thereby providing avenues for market growth. In addition, government and healthcare segment are also anticipated to showcase positive outlook over the next few years.
Based on region, the market is classified into North America, Europe, Asia Pacific, Latin America and Middle East & Africa. North America accounted for the majority market share in 2016 and is anticipated to witness significant growth over the forecast period which is attributed to the presence of large mass utilizing the online platform for virtual transactions.
Asia Pacific and Latin America are also anticipated to witness strong growth over the forecast period owing to increasing penetration of online transactions in these regions. Smartphone proliferation, particularly in these regions, is another factor aiding the regional market growth.
Growth Drivers & Restraints
Benefits offered by blockchain such as reduced total cost of ownership, faster transactions, and transparency and immutability are among the prominent market drivers. Additionally, elevating adoption of blockchain for smart contracts, payments, and digital identities may offer avenues for market growth over the next seven years.
Uncertain regulatory status paired with lack of awareness is expected to pose challenges for market growth. However, a new breed of programmable blockchain platforms coupled with technology disruption across varied industry domains is expected to provide significant growth opportunities over the coming years.
Merger & Acquisition Insights
The global blockchain market is still in its nascent stage and the technology is budding day by day. The industry is witnessing an increasing number of new entrants emerging in the market with innovative software platforms and products. With reference to this, there is no such noticeable merger or acquisition that took place in this market.
Top Players & Company Share
Prominent industry players include Microsoft Corporation, Circle Internet Financial Limited, IBM Corporation, Alphaphoint, Deloitte, Coinbase, Ripple, Chain Inc., Global Arena Holding, Inc., Digitalx Ltd., Earthport, Abra Inc., BTL Group, Bitfury, Digital Asset Holdings, Intelygenz. Industry participants emphasize on the development of innovative and cost-effective technology in order to prevail in this highly competitive environment.
Blockchain Market, by Enterprise Size (Revenue, USD Million)
- Small Medium Enterprises (SMEs)
- Large Enterprise
Blockchain Market, by Application (Revenue, USD Million)
- Smart Contracts
- Digital Identity
Blockchain Market, by End-Use (Revenue, USD Million)
- Media & Entertainment
Blockchain Market, by Region (Revenue, USD Million)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
- Saudi Arabia