Increasing adoption of cryptocurrency across the globe is driving blockchain market revenue growth
The Blockchain Market size is expected to reach USD 173.78 Billion in 2028 and register a revenue CAGR of 64.3% over the forecast period, according to the latest report by Reports and Data. The surge in data and identity theft activities is driving blockchain market revenue growth. Blockchain has developed over the years and aids in the conduction of financial transactions. An increase in cashless payments, credit and debit cards and card-based payment methods are becoming quite common. Blockchain supports these changes by increasing transaction processing speed and providing greater efficiency in real-time processing.
Blockchain brings digital technology into real-time computing systems management. Blockchain can change aspects of digital technology, which includes the method of conducting business, enhancing education, delivering healthcare, shopping, learning, social media, and entertainment. Blockchain offers a sturdy environment for sharing data securely in real-time. The technology provides enhanced security to the real-time digital economic processes. Blockchain in retail industries is being used by companies such as Walmart and Visa. They are using blockchain to streamline supply chains, speed-up payments, and store records.
Blockchain is a technology that keeps a record of any digital transaction made by users in multiple systems for decentralized storage of data. The digital economy has changed dramatically over the years with a rise in the value of cryptocurrencies, such as ‘Bitcoin’ increasing exponentially in the last couple of years. Technology that supports cryptocurrency is known as the blockchain. It serves as an encrypted ledger to keep track on cryptocurrency’s value and ownership. Blockchain significantly decreases cost by removing the “middleman” in digital marketing. In the case of search engine marketing through blockchain, website owners can save costs by removing the need for Google or Facebook, or any other intermediaries.
Blockchain market’s increased revenue growth during COVID-19 can be used for a plethora of opportunities, such as tracking public health data surveillance, particularly during infectious disease outbreaks. With increased blockchain transparency, there will be more accurate reporting and efficient responses. Blockchain can aid in developing treatments swiftly as they would allow for rapid processing of data, thus enabling early detection of a disease before it turns into a pandemic. Moreover, this will enable government agencies to keep track of virus activities, patients, suspected new cases, and more. In response to the virus, tech companies have ramped up their collaborations in the blockchain.
Some Key Highlights:
- Smart contracts segment accounted for largest revenue share in 2020. Organizations are nowadays deploying smart contracts to reduce cost and avoid fraud. These contracts deployed over blockchain guarantees that contract terms and conditions cannot be modified. The technology makes it nearly impossible for any third party to alter contract.
- Supply chain management segment revenue is expected to register highest growth rate during the forecast period. Blockchain revolutionizes retail sector supply chain management by deploying real-time digital ledger of transactions and movements for all participants in supply chain network. Benefits gained by this will save company’s time and money and redefine the way of business.
- Availability of resources and capital for the incorporation of new technologies is expected to propel the adoption of blockchain in large enterprises. Large enterprises segment accounted for a larger revenue market share in 2020. High investment in research and development activities to build the best-fit technology to enhance organization’s business is driving revenue growth of large enterprises segment.
- Blockchain makes it possible for retail giants to create their own brand of currency for customers to claim rewards. It can also allow brands to share those loyalty points among themselves to reward their customers. Retail & e-commerce segment revenue is expected to grow at a significant rate during the forecast period.
- Market in North America accounted for largest revenue share in 2020. The region emerged as most attractive market for blockchain owing to more adoption of technology in banking, financial services and insurance sector, and retail and e-commerce. Highly competitive market in the region is due to presence of major companies which in turn is driving growth of the market.
- Major players in the market include IBM Corporation, Microsoft Corporation, SAP, Oracle, Symbiont, Huawei, Blockpoint, BTL Group, Factom, and Earthport.
Driver: Emergence of cryptocurrency
Blockchain is a technology that keeps record of any digital transaction made by users in multiple systems for decentralized storage of data. The digital economy has changed dramatically over the years with rise in value of cryptocurrencies, such as ‘Bitcoin’ increasing exponentially in last couple of years. Technology that supports cryptocurrency is known as the blockchain. It serves as an encrypted ledger to keep a track on cryptocurrency value and ownership. Blockchain significantly decreases cost by removing “middleman” in digital marketing. In case of search engine marketing through blockchain, website owners can save cost by removing need for Google or Facebook or any other intermediaries.
Restraint: Lack of skilled professionals
Organizations are facing dearth of skilled professionals to overcome deployment of blockchain. Moreover, lack of awareness in some countries is also expected to hinder market revenue growth. Another problem of blockchain is once a data is written, it cannot be removed from platforms. Any person or organization will not be able to remove data if they no longer want it there.
Based on regional analysis, blockchain market in North America accounted for largest revenue share in 2020. The region emerged as most attractive market for blockchain owing to high adoption of technology in banking, financial services and insurance sector, and retail and e-commerce. Highly competitive market in the region owing to presence of major companies is also driving the growth of market.
Market in Europe accounted for a significant revenue share in 2020. In April 2018, the European Union and Norway signed a declaration creating the European Blockchain Partnership (EBP). Declaration was signed to support the cooperation of establishment of European Blockchain Services Infrastructure (EBSI) that is expected to aid in delivery of cross border digital public services with highest standard of privacy and security.
Market in Asia Pacific is expected to register highest revenue growth rate during forecast period. The region is a hub for international finance which is boosting growth of BFSI sector and supply chain management. Government regulations are also blockchain-friendly in the region. China is expected to have highest rate of adoption of blockchain. The country has banned cryptocurrencies and is trending a new phase “Blockchain not Bitcoin” to define its strategy.
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