Blockchain Technology Market Size, Share & Trends Analysis Report By Type (Private Cloud, Public Cloud), By Application (Digital Identity, Payments), By Enterprise Size, By Component, By End Use, And Segment Forecasts, 2023 - 2030

Report Overview

The global blockchain technology market size was valued 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 market growth can be attributed to the increasing venture capital funding in blockchain technology companies. For instance, in May 2021, Circle Internet Financial Ltd., a blockchain technology provider, announced that it raised USD 440 million in funding from strategic and institutional investors. The company used this funding for organizational development and market expansion. The legalization of cryptocurrency in countries, such as Ukraine and El Salvador, is expected to create new opportunities for market growth.

The legalization of cryptocurrency encourages businesses and investors to invest more in blockchain technology. Furthermore, it also encourages the market players to make more efforts to improve their services to gain a competitive edge. These efforts made by the companies are expected to make blockchain technology more effective and efficient in the near future. DeFi is an emerging financial technology based on blockchain, which reduces the control banks have on financial services and money. The growing strategic initiatives in the decentralized finance space are expected to drive market growth over the forecast period. For instance, in July 2021, Square, a payment company, announced that it is launching a business dedicated to DeFi using bitcoin.

This initiative is expected to help the company strengthen its market position. The acceptance of cryptocurrency as a payment by companies, such as PayPal and Xbox, is expected to drive market growth. Various restaurants are entering into partnerships with cryptocurrency solution providers to provide cryptocurrency-based payments to their customers. For instance, in August 2021, Bakkt Holdings, LLC, a digital asset marketplace, announced its partnership with Quiznos, a Quick-service Restaurant (QSR), to launch its physical location pilot. This pilot enabled the customers of Quiznos to pay with bitcoin at select locations.

Various companies are making efforts to integrate Artificial Intelligence (AI) capabilities with blockchain to enhance their offerings, creating new opportunities for market growth. For instance, in September 2019, Signzy Technologies Private Ltd., a RegTech startup, announced its partnership with Primechain Technologies, a blockchain technology provider. The partnership was aimed toward developing AI-enabled smart banking solutions for financial institutions and banks. This smart banking solution integrated AI and blockchain technologies to digitalize and automate back-office operations.

COVID-19 Impact Analysis

The market witnessed growth amid the COVID-19 pandemic in 2022. Blockchain technology plays a vital role in developing a platform for managing the COVID-19 pandemic. Various hospitals are using blockchain technology for tracking the COVID-19 vaccine. Two Hospitals, in Warwick (London) and Stratford-upon-Avon, are using this technology to monitor the storage of the temperature-sensitive COVID-19 vaccine.

Type Insights

On the basis of type, the global market has been segmented into public cloud, private cloud, and hybrid cloud. The public cloud segment dominated the market in 2022 and accounted for more than 61.0% share of the global revenue. A public cloud blockchain is a multi-tenant environment where the computing space is shared with several other clients. Various government bodies across the world are integrating conventional systems with cloud technologies in the current days. The demand for public cloud is high as it provides cost competitiveness to enterprises.

The private cloud segment is also anticipated to have significant growth over the forecast period. Private cloud services include the provision of dedicated infrastructure and resources exclusively for organizations. A private cloud enables companies to reverse the 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 and small &medium enterprises is one of the major factors driving the segment growth.

Component Insights

On the basis of components, the market has been divided into application & solution, infrastructure & protocols, and middleware. 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 growth.

The middleware segment is expected to register the second-fastest growth rate 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

On the basis of applications, the market has been categorized into digital identity, exchanges, payments, smart contracts, supply chain management, and others. 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 fastest CAGR over the forecast period. The companies offering digital identity are entering into partnerships with blockchain technology providers, which is driving the segment growth. For instance, in May 2020, Ontology, an enterprise blockchain platform, announced its partnership with Spherity GmbH, a digital identity specialist. Through this partnership, the former company’s blockchain technology was integrated with Spherity GmbH’s Cloud-Edge Identity Wallet. This integration will thereby help the company to strengthen its market position.

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 the 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 (SME) segment is anticipated to grow at the fastest 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 secured 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 fastest 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 breach. For instance, the European Union data protection law, 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 for enhancing data security. Furthermore, the COVID-19 pandemic has increased the demand for digitalization across the healthcare sector, which created the need for blockchain technology across the sector.

Regional Insights

The North America regional market dominated the global market in 2022 and accounted for over 37.0% share of the global revenue. The increasing adoption of blockchain technology by organizations in the region is driving the regional market growth. Industries, such as government, retail, and BFSI, are implementing payment and wallet solutions, smart contracts, and digital identity detection solutions, which is creating the need for blockchain technologies. Furthermore, the increase in the use of cryptocurrency among the people in North America is also one of the major factors accentuating the regional market growth.

On the other hand, the market in Asia Pacific is expected to grow at the fastest CAGR over the forecast period. The governments of countries, such as China, Japan, and India, have been promoting the use of blockchain technology. This is mainly due to the benefits, such as high transparency and increased efficiency, offered by this technology to multiple industries. For instance, in 2019, the government of South Korea 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 in nature. The market players are focused on strategies, such as mergers and acquisitions, to strengthen their market position. For instance, in March 2019, Circle Internet Financial Limited completed the acquisition of SeedInvest, an equity crowdfunding platform. The acquisition was aimed at delivering a token marketplace that would allow individuals and businesses to raise capital and interact with investors through the open crypto infrastructure.

Major players operating in the market include Web3 Foundation (Polkadot), Helium Systems Inc., Ocean Protocol Foundation Ltd., Zel Technologies GmbH (Flux), Kusama, Livepeer, Inc., and Filecoin, and Kadena LLC, among others. These companies are focused on strategies such as partnerships and mergers & acquisitions to strengthen their position in the market. For instance, in January 2022, Mphasis, an information and technology company, announced its collaboration with CrossTower, a cryptocurrency exchange solution provider. The collaboration is aimed at creating a Center of Excellence focused on Web 3.0 and blockchain-based products, which will be launched and traded on the CrossTower platform.

• IBM Corp.

• Microsoft Corp.

• The Linux Foundation

• BTL Group Ltd.

• Chain, Inc.

• Circle Internet Financial Ltd.

• Deloitte Touche Tohmatsu Ltd.

• Digital Asset Holdings, LLC

• Global Arena Holding, Inc. (GAHI)

• Monax

• Ripple

Blockchain Technology Market Report Scope

Segments Covered in the Report

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global 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 America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia

    • UAE