Global Blockchain Technology Market By Type (Private Cloud, Public Cloud, and Hybrid Cloud), By Component (Infrastructure & Protocols, Application & Solution, and Middleware), By Application, By Enterprise, By End-Users, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the global Blockchain Technology market was valued at USD 72 billion. Between 2023 and 2032, this market is estimated to register the highest CAGR of 68%. It is expected to reach USD 12,895 billion by 2032.

Blockchain technology is an advanced database system that allows transparent information sharing within a company network. Blockchain databases store data in blocks linked in a chain. Venture capital funding is a key factor in the growth of the blockchain technology market.

Several blockchain technology providers have raised funding from strategic as well as institutional investors. This funding was used for market expansion and organizational development.

Driving Factors

Increasing Number Of Strategic Initiatives in Decentralized Finance

Blockchain technology Market growth will be driven by the increasing number of strategic initiatives in decentralized finance. The legalization of cryptocurrency inspires investors and businesses to invest in the market for blockchain technology.

It also reassures market players to invest more in blockchain technology to increase their competitive advantage. The companies’ efforts are anticipated to increase the efficiency and effectiveness of blockchain technology in the coming years.  Many restaurants have partnered with blockchain solutions providers to offer cryptocurrency-based payments to customers. Across cryptocurrency networks, customers demand protocols as they enable them to share information reliably and securely.

Restraining Factors

Increase in Cyberattacks and threats

Cyberattacks and threats have increased with the rise of digital transformation among industries. It is, however, difficult for organizations to overcome the situation of risk factors due to a lack of skilled professionals.

Therefore, the adoption of technologically advanced solutions is slow and is anticipated to impact the market growth for the next few years. A lack of awareness of data protection risks is also prevalent in various developing countries. Therefore, the adoption of the technology is likely to be stagnant for a few years.

COVID-19 Impact Analysis

Rise in Demand for Blockchain Systems for Digitalization in the Healthcare Sector

The COVID-19 pandemic, which has seen a rise in demand for blockchain systems for digitalization in the healthcare sector, has also created the need to use blockchain technology. In contrast to the COVID-19 impact analysis, the influence and popularity of digitalization have grown rapidly to promote contactless payment. Also, the pandemic has increased the adoption of digital technology from the government to retail.

Type Analysis

The Public Cloud Segment Dominates the Market as it Offers Cost-Competitiveness for Enterprises

Based on technology, the global blockchain technology market can be divided into three types: public cloud, private cloud, and hybrid cloud. In 2022, the public cloud segment was dominant in the market, accounting for over 62% of global revenue.

A multi-tenant environment in which computing space is shared among several clients is known as a public cloud blockchain. Many government agencies worldwide are currently integrating cloud technology with their existing systems. The public cloud is highly sought after because it offers cost-competitiveness for businesses. The private cloud segment will also see significant growth over the forecast period.

Private cloud services are a type of service that provides dedicated resources and infrastructure to organizations. Private cloud services allow companies to reverse transactions at cost-effective transaction speeds. This is another prime factor expected to boost the growth of the segment. The increasing adoption of private clouds also drives the segment’s growth by small and medium enterprises.

Component Analysis

Demand for Protocols and Standards is Making the Infrastructure & Protocol Segment Dominant

Based on components, the market can be divided into three segments: application & solution, infrastructure & protocols, and middleware. In 2022, the infrastructure & protocol segment was the dominant market and accounted for more than 65.4% of global revenue.

This segment growth is driven by the growing demand for protocols and standards such as Ethereum, Openchain, and Hyperledger. Users seek protocols because they allow them to securely and reliably share information across crypto networks. The benefits of infrastructure and protocols are driving the segment’s growth.

Over the forecast period, the fastest growth rate was seen in the middleware segment. Developers can build more efficient applications with middleware. Middleware is used primarily in the healthcare sector to automate the authentication of clinical data. The segment growth is expected to be driven by increasing investments in healthcare. The segment’s growth is also driven by Middleware tools that track laboratory performance metrics.

Application Analysis

The Payments Segment Dominated the Market Due to the Acceptance of Cryptocurrency by Various Key Companies

By applications, the blockchain technology market can be divided into three categories: digital identity, exchanges, payments, and Supply chain management. Digital identity is expected to grow at the fastest CAGR rate during the forecast period. In 2022, the payments segment dominated the market and accounted for more than 44% of global revenue.

For payment, the acceptance of cryptocurrency by companies like Paypal is expected to fuel market growth. Regulatory acceptance is one of the more challenging aspects of upgrading payment solutions. Blockchain technology increases the efficiency of payment systems, reduces operating costs, and provides transparency. It reduces the need to have a middleman for payment processing, which is another major factor that drives segment growth. Companies that offer digital identity have begun to partner with blockchain technology providers.

Enterprise Size Analysis

Large Enterprise Segment Dominated the Market by Digitizing their Offerings

Based on enterprise size market can be segmented into small & medium enterprises and large enterprises. In 2022, the large enterprise segment dominated the market with a revenue share of 68.5%. Large enterprises in various sectors, such as healthcare, finance, and insurance, are making more efforts to digitize their offerings. This is driving demand for blockchain systems. BBVA and Intesa Sanpaolo are some large enterprises that use blockchain technology. They have enough capital and other necessary assets to adopt any new technology available in the blockchain technology market.

Over the forecast period, the small & medium enterprises (SME) segment is anticipated to grow at the fastest CAGR. The scaling of small and medium enterprises is difficult for them, as they have to finance, process payments, and select ancillary services essential for global expansion. Small business segments are increasingly looking for blockchain-based storage solutions that allow them to securely store their data and do so at a low cost. They can use blockchain technology to reduce the costs of exchanging and subsidizing accounts. Blockchain technology allows small and medium business entities to streamline their supply chains through secure, safe information exchanges and smart contract implementations.

End-Use Analysis

The BFSI Segment Dominated the Market Because of Secure and Efficient Transactions

Based on end-use, the market can be segmented into government, BFSI, media & entertainment, transportation & logistics, healthcare, retail, travel & hospitality, and other end-uses. In 2022, the BFSI segment dominated and accounted for more than 40% of global revenue.

The demand for blockchain technology in financial services is growing because it allows for secure and efficient transactions. This vertical will likely adopt blockchain technology due to its compatibility with industry ecosystems, rising blockchain technology market-related cryptocurrencies, rapid transactions, initial coin offerings, and lower total cost of ownership.

Blockchain technology is being adopted in healthcare because of increasing consumer data regulations. Due to increasing data theft incidents and breaches, governments worldwide are adopting strict regulations to protect consumer information. GDPR is designed to protect EU citizens against data breaches and privacy. These regulations have prompted companies around the world to invest in data security.

Key Market Segments

Based on Type

• Private Cloud
• Public Cloud
• Hybrid Cloud

Based on Component

• Infrastructure & Protocols
• Application & Solution
• Middleware

Based on Application

• Exchanges
• Digital Identity
• Smart Contracts
• Payments
• Supply Chain Management
• Other Applications

Based on Enterprise

• Small & Medium Enterprises
• Large Enterprises

Based on End-User

• Government
• BFSI
• Media & Entertainment
• Transportation & Logistics
• Healthcare
• Retail
• Travel & Hospitality
• Other End-users

Growth Opportunity

Companies are Integrating AI Capabilities to Create New Market Opportunities

Many companies are working to integrate AI capabilities with blockchain to improve their offerings and create new market opportunities. For example, a RegTech startup, Signzy Technologies Private Ltd., declared its partnership with a blockchain technology provider Primechain Technologies. This partnership was intended to develop AI-enabled smart bank solutions for the banking sector and financial institutions. This smart banking solution combines blockchain technologies and AI to automate and digitize back-office functions, which is anticipated to create several opportunities in the market over the forecast period.

Latest Trends

Demand for Cloud-Based Services

The epidemic has opened up a market for cloud-based services by inspiring businesses to adopt a cutting-edge approach to allowing employees to work from home. There is a growing need for cloud-based solutions to create virtual work environments. As a result, software is increasingly in demand across industries to maintain employment. The problems that SMEs (small and medium-sized enterprises) have are perfectly solved by BaaS. The need for BaaS products is rising as SMEs using cloud-based solutions install distributed ledger-based services to protect digital entities and authenticate human identities.

Blockchain Technology Market-Based Identification Platforms

There are many uses for the different identity platforms that use blockchain technology in both unregulated and regulated countries as well as in countries with weaker identification laws. To encourage safe and transparent transactions between public and private sector sectors, several governments have adopted blockchain technology market-based identification platforms at the national level.

Regional Analysis

In 2022, North America dominated the global blockchain technology market share and accounted for more than 39% of global revenue. The increasing adoption of blockchain technology drives regional markets’ annual growth rate. BFSI, government, and retail implement smart contracts, payment solutions and wallet solutions, and digital identity identification solutions. This is driving the blockchain technology demand. The region’s market growth is accelerated by rising cryptocurrency use among North Americans.

The Blockchain Technology market for the Asia Pacific is expected, on the other hand, to grow at the fastest rate of CAGR during the forecast period. Governments have promoted the market for blockchain technology in countries like India, Japan, China, and China. This is due to the many benefits of blockchain technology, including increased transparency and efficiency for multiple industries. South Korea’s government announced US$ 891 million in blockchain development projects investments.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share & Key Players Analysis

The market’s competitive landscape is highly fragmented. Market players focus on strategies such as mergers or acquisitions to strengthen their market position. Circle Internet Financial Limited acquired SeedInvest, an equity crowdfunding blockchain platform. This acquisition created a token market allowing investors and individuals to interact through the open cryptocurrency infrastructure. Blockchain Technology Market players are also focusing on improving their product offerings to meet customer satisfaction and remain competitive.

Market players are increasing their research and development investment to improve their product offerings. Companies are also working with universities worldwide to support academic research and technical development in cryptocurrency and blockchain technology.

Market Key Players

Listed below are some of the most blockchain technology industry players:

• IBM Corporation
• The Linux Foundation
• Microsoft Corporation
• Chain, Inc.
• Circle Internet Financial Ltd.
• Earthport Plc
• BitFury Group Ltd
• Deloitte Touche Tohmatsu Limited
• BTL Group Ltd.
• Digital Asset Holdings, LLC
• Deloitte Touche Tohmatsu Ltd.
• Global Arena Holding, Inc. (GAHI)
• Indian Banks’ Blockchain Infrastructure Company Private Limited (IBBIC)
• Oracle Corporation
• Other Key Players

Recent Developments

• In June 2021, India’s significant banks, including the State Bank of India (SBI), HDFC Bank, ICICI Bank, and others, teamed up to shape Indian Banks’ Blockchain Infrastructure Company Private Limited (IBBIC), a confidential, restricted organization devoted to getting exchanges, diminishing exchange handling time, and accelerating the letters of the credit cycle.
• April 2021 -R3.Trames and IMDA have signed a Memorandum of Intent to speed up supply chain digitization and global trade.
• April 2021 – Oracle Corporation launches enterprise distributed ledger tech (DLT), technology for healthcare, financial services, and supply chain to combat COVID-19.

Report Scope