Blockchain Technology Market Size, Share & Trends Analysis Report By Type, By Component, By Application, By Enterprise Size, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global blockchain technology market size was estimated at USD 10.02 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 87.7% from 2023 to 2030. The escalating demand for secure and transparent transactions across many industries is driving the market growth. Blockchain's decentralized and immutable ledger system ensures the integrity and transparency of transactions, making it especially appealing to sectors such as finance, healthcare, and supply chain management. Businesses across these domains are increasingly integrating blockchain solutions to enhance security and transparency in their operations.

The adoption of blockchain technology for optimizing supply chain processes is witnessing a surge. The ability to trace and verify the origin and journey of products in real-time curbs fraud and significantly improves traceability and overall supply chain efficiency. Consequently, an increasing number of enterprises are leveraging blockchain's potential to transform their supply chain management, driving the technology's growth. Moreover, the surging interest in cryptocurrencies and digital assets is another driver responsible for the growth.

Since blockchain serves as the underlying technology for most cryptocurrencies, the rising popularity of digital currencies like Bitcoin and Ethereum has inevitably directed considerable attention to the technology itself. Many organizations are now exploring how blockchain can be used to create and manage digital assets, including Central Bank Digital Currencies (CBDCs), further propelling the market's expansion. Furthermore, the escalating need for secure and efficient cross-border payments and remittances propels blockchain's adoption. Traditional international payment systems often involve multiple intermediaries, resulting in delays and exorbitant costs. In stark contrast, blockchain-based solutions offer faster, cost-effective, and transparent cross-border transactions, driving their adoption in the finance and remittance sectors.

Governments and regulatory bodies worldwide also recognize blockchain technology's transformative potential. They are actively introducing supportive policies and regulations that encourage its widespread adoption. This regulatory clarity not only attracts substantial investments but also fosters the development of innovative blockchain solutions across industries. In addition, the increasing engagement of major corporations and tech giants significantly influences the blockchain landscape.

One of the prominent restraints challenging the blockchain technology market is the issue of scalability. As the adoption of blockchain technology grows across various industries, particularly in financial services and supply chain management, the networks are experiencing increased congestion, slower transaction speeds, and higher fees. This scalability challenge can hinder widespread adoption, especially when blockchain is expected to handle large volumes of transactions. To overcome this restraint, developers, and innovators in the blockchain space are actively working on scaling solutions. Layer 2 solutions, such as Ethereum 2.0, aim to improve scalability by processing transactions off the main blockchain, thus alleviating congestion and reducing fees.

COVID-19 Impact Analysis

The blockchain technology market witnessed growth amid the COVID-19 pandemic. Blockchain technology plays a vital role in developing a platform for managing the pandemic. Various hospitals are using blockchain technology for tracking the COVID-19 vaccine. Two Hospitals, in Warwick (London) and Stratford-upon-Avon, are using blockchain technology to monitor the storage of the temperature-sensitive COVID-19 vaccine.

Type Insights

The public cloud segment dominated the market in 2022 and accounted for more than 61.0% share of the global revenue. Public cloud providers offer a scalable and cost-effective infrastructure for deploying blockchain solutions. This scalability is vital as blockchain networks grow and require additional resources to support increasing transaction volumes. Moreover, public cloud providers have invested significantly in security and compliance measures, which are crucial in blockchain applications, particularly in sectors like finance and healthcare, where data integrity is paramount.

The private cloud segment is anticipated to witness significant growth over the forecast period. Private cloud services include the provision of dedicated infrastructure and resources exclusively for organizations. The private cloud enables companies to reverse transactions at cost-effective transaction rates. This is driving the growth of the segment. Furthermore, the rise in the adoption of private cloud by large enterprises and small & medium enterprises is one of the major factors driving the segment growth.

Component Insights

The infrastructure & protocols segment dominated the market in 2022 and accounted for more than 61.0% share of the global revenue. The increasing demand for blockchain standards and protocols such as Ethereum, Openchain, and Hyperledger is driving the segment growth. The users demand protocols as they enable them to share information reliably and securely across cryptocurrency networks. Thus, the benefits offered by infrastructure and protocols are contributing to the segment's growth.

The middleware segment is expected to witness significant growth over the forecast period. Middleware helps developers build applications more efficiently. A middleware tool is mainly used in the healthcare sector to automate the authentication of clinical data. Growing investments in the healthcare sector are expected to drive the segment growth. Middleware tools track the laboratory performance metrics, which is also one of the factors driving the growth of the segment.

Application Insights

The payments segment dominated the market in 2022 and accounted for more than 44.0% share of the global revenue. Blockchain technology improves payment system efficiency, minimizes operating costs, and offers transparency. These benefits provided by blockchain technology are increasing its use in payment solutions, thus driving the segment growth. Furthermore, blockchain reduces the need for a middleman in payment processing, which is also a major factor driving the segment growth.

The digital identity segment is anticipated to grow at the highest CAGR over the forecast period. The segment is experiencing rapid growth due to its potential to address critical challenges in the digital age. As our lives become increasingly digitized, the need for secure and portable digital identities has become paramount. Blockchain technology offers a unique solution by providing a decentralized and tamper-proof ledger to verify and manage digital identities. This innovation has garnered significant interest, especially in sectors like finance, healthcare, and government, where identity verification is crucial.

Enterprise Size Insights

The large enterprises segment dominated the market in 2022 and accounted for more than 67.0% share of the global revenue. Large enterprises operating in sectors such as insurance, financial services, healthcare, and supply chain are increasingly making efforts to digitalize their offerings, which is creating a demand for blockchain technology among them. Large enterprises such as BBVA, Intesa Sanpaolo, Barclays, and HSBC are using blockchain technology to streamline their KYC and fund processes. They have access to adequate capital and different assets to adopt new technologies introduced in the market.

The small & medium enterprise segment is anticipated to grow at the highest CAGR over the forecast period. Small & medium enterprises face difficulties in scaling their tasks such as financing, processing payments, and selecting ancillary services essential for global expansion. Blockchain technology helps them reduce issues in the areas of subsidizing and exchanging accounts. Furthermore, secure and safe information exchanges and smart contracts offered by blockchain technology help small & medium enterprises streamline supply chains. Furthermore, blockchain-based storage applications enable small businesses to store data safely and cost-effectively, which is driving the demand for blockchain among small businesses.

End-use Insights

The financial services segment dominated the market in 2022 and accounted for more than 37.0% share of the global revenue. Financial services use blockchain technology for managing financial transactions taking place in businesses. Blockchain technology provides secure and efficient transactions, and this is driving the demand for the technology in financial services. The technology is expected to be widely adopted in this vertical owing to factors such as rising cryptocurrencies, high compatibility with the industry ecosystem, rapid transactions, Initial Coin Offerings (ICOs), and reduced total cost of ownership.

The healthcare segment is anticipated to grow at the highest CAGR over the forecast period. The increasing number of regulations for protecting consumer data is increasing the adoption of blockchain technology in the healthcare sector. Governments across the globe are implementing stringent regulations to protect consumer information owing to the growing incidents of data theft and breaches. For instance, the European Union data protection law, the General Data Protection Regulation (GDPR), became effective in May 2018. GDPR aims to safeguard EU citizens from privacy and data breaches. Such regulations are impelling companies across the globe to make investments in enhancing data security. Furthermore, the COVID-19 pandemic has increased the demand fordigitalization across the healthcare sector, which thereby created the need for blockchain technology across the sector.

Regional Insights

North America dominated the blockchain technology market in 2022 and accounted for over 37.0% share of the global revenue. The region boasts a robust ecosystem of tech startups, established corporations, and leading research institutions, creating a fertile ground for blockchain development. Silicon Valley, in particular, has been a hotspot for blockchain startups and venture capital investments. Moreover, North America is home to a diverse range of industries, from finance and healthcare to supply chain management and energy, all of which recognize the transformative potential of blockchain technology.

Asia Pacific is expected to grow at the highest CAGR over the forecast period. The governments of countries such as China, Japan, and India are promoting the use of blockchain technology in recent days. They are promoting the use of blockchain owing to benefits such as high transparency and increased efficiency provided to multiple industries. In 2019, the South Korean government announced an investment of USD 880 million in blockchain development projects.

Key Companies & Market Share Insights

The competitive landscape of the market is highly fragmented. The key players are focused on strategies such as partnerships to strengthen their market position. For instance, in August 2023, Aptos Labs, known for developing a layer 1 blockchain, founded by ex-Facebook personnel to resurrect the abandoned Diem project (previously known as Libra), is widening its array of tools and services. This expansion involves using Microsoft's Artificial Intelligence (AI) technology. Aptos intends to introduce novel offerings that integrate AI and blockchain technology through this partnership. A notable addition is the Aptos Assistant, a chatbot designed to respond to user inquiries about the Aptos ecosystem. It will also serve as a resource hub for developers creating smart contracts and Decentralized Applications (dApps).

The market players are also focused on enhancing their product offerings to better cater to the changing needs of users and stay competitive. As a result, market players are investing more in research and development to enhance their product offerings. Furthermore, the companies are also collaborating with universities worldwide to support technical development, academic research, and innovation in cryptocurrency and blockchain technology. Some prominent players in the global blockchain technology market include:

• IBM Corporation

• Microsoft Corporation

• The Linux Foundation

• BTL Group Ltd.

• Chain, Inc.

• Circle Internet Financial Limited

• Deloitte Touche Tohmatsu Limited

• Digital Asset Holdings, LLC

• Global Arena Holding, Inc. (GAHI)

• Monax

• Ripple

Blockchain Technology Market Report Scope

Global Blockchain Technology Market Report Segmentation

The report forecasts revenue growth at global, regional, and country levels and analyzes the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the blockchain technology market report based on type, component, application, enterprise size, end-use, and region:

• Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Public Cloud

  • Private Cloud

  • Hybrid Cloud

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Application & Solution

  • Infrastructure & Protocols

  • Middleware

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Digital Identity

  • Exchanges

  • Payments

  • Smart Contracts

  • Supply Chain Management

  • Others

• Enterprise Size Outlook (Revenue, USD Million, 2017 - 2030)

  • Large Enterprises

  • Small & Medium Enterprises

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Financial Services

  • Government

  • Healthcare

  • Media & Entertainment

  • Retail

  • Transportation & Logistics

  • Travel

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • Australia

    • India

    • South Korea

  • South America

    • Brazil

  • Middle East & Africa

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa