July 12, 2024

Blockchain Technology Market Estimated To Witness High Growth Due To Increasing Demand For Enhanced Security And Transparency

The Blockchain Technology Market is estimated to be valued at Us$ 3.76 Bn in 2022 and is expected to exhibit a CAGR Of 54.7% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Blockchain technology is a distributed ledger that maintains a continuously growing list of ordered records called blocks. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. This design makes blockchain extremely difficult or impossible to modify, thereby making it secure. Blockchain has the potential to disrupt a variety of industries like banking, payments, finance, supply chain and logistics etc due to its benefits like enhanced security, transparency and traceability.

Market Dynamics:

The blockchain technology market is witnessing high growth owing to increasing demand for enhanced security and transparency across industries. Blockchain offers distributed and immutable security due to its decentralized nature which prevents the alteration of transaction records. This has increased the adoption of blockchain by financial institutions for payments and transactions, as it eliminates the risks of fraudulent transactions. For example, Ripple provides blockchain based global payments network solutions to banks and payment providers to process transactions securely in real time.

Moreover, blockchain provides transparency where transaction records are accessible to all participants in the network. This transparency helps in tracking assets throughout the supply chain and facilitates product traceability. For example, global corporations like Walmart are collaborating with blockchain startups to pilot blockchain based food traceability solutions.

Segment Analysis

The blockchain technology market is dominated by the public blockchain segment. Public blockchains have fully open, permissionless networks that allow anyone with an internet connection to participate without restrictions. They facilitate large-scale, decentralized applications without centralized governance. The key advantage of public blockchains is that they provide a high degree of decentralized collaboration compared to private or consortium blockchains.

PEST Analysis

Political: Regulations around crypto assets vary widely globally. However, some jurisdictions are crafting clearer frameworks to support blockchain development.

Economic: The application of blockchain in areas like banking, payments and digital identity can drive greater economic efficiencies. It also has the potential to enhance financial inclusion.

Social: Blockchain technologies align well with the sharing economy’s emphasis on collaborative consumption. They also promote transparency which resonates well socially.

Technological: Blockchain provides a robust technological foundation for areas like data management, IoT and AI. Continued innovation is extending its use across more sectors.

Key Takeaways

The global Blockchain Technology Market is expected to witness high growth, exhibiting CAGR of 54.7% over the forecast period, due to increasing adoption across various industries like banking, financial services, government, and healthcare. North America currently dominates the market due to rapid technical advancements and presence of key players in the region.

APAC is anticipated to grow at the fastest rate owing to increasing government initiatives, developing infrastructure, and growing adoption among SMEs across India, China, Japan and other Asian countries.

Key players operating in the blockchain technology market are Accenture, Coinbase, Chain Inc., Deloitte Touche Tohmatsu Limited, Digital Asset Holdings, LLC, IBM Corporation, JP Morgan Chase & CO, Microsoft Corporation, Ripple, and R3. These players are focusing on partnerships, new product launches and collaborations to strengthen their presence in the blockchain technology industry.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it