Cryptocurrency Market Size, Share & Trends Analysis Report By Component, By Hardware, By Software, By Process (Mining, Transaction), By Type, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global cryptocurrency market size was valued at USD 4.67 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 12.5% from 2023 to 2030. The global cryptocurrency market cap was valued at over USD 800 billion in 2022. Cryptocurrency, also known as virtual currency, exists digitally and has no regulatory authority. Cryptocurrency uses distributed ledger technology such as blockchain to validate transactions. The increasing adoption of distributed ledger technology is anticipated to propel the cryptocurrency market growth during the forecast period. Moreover, increasing usage of cryptocurrencies for cross-border remittances is expected to fuel market expansion due to the reduction in consumer fees and exchange charges.

Recent developments in Artificial Intelligence (AI) are expected to have a huge impact on the cryptocurrency market. The rising popularity of AI-based cryptocurrency platforms has inspired several businesses to focus on the development of AI technology. For instance, in August 2021, researchers at Los Alamos National Laboratory developed an artificial intelligence program to identify unlawful cryptocurrency miners who use research computers for cryptocurrency mining.

Moreover, the rise of cryptocurrency as a decentralized asset class has attracted investments by private venture companies in the market. For instance, the U.S. cryptocurrency market witnessed investments worth USD 6.1 billion in 2021 across 106 deals. The growth is further supported by the increased demand for cryptocurrency as an alternative form of tender across emerging economies, such as Iran, Argentina, and Zimbabwe, plagued with devalued currencies.

One of the key elements influencing the growth of digital currency is the growing number of businesses that now accept cryptocurrency as an official payment method. Additionally, the adoption of digital currency by major corporations such as Tesla Inc. and MasterCard Inc. is anticipated to boost industry expansion. For instance, in November 2021, MasterCard Inc., a financial services company, allowed its network partners to enable their customers to purchase, trade, and hold digital currency using a digital wallet. Moreover, the business offered digital currency as a reward for the clients who participated in loyalty programs.

Government bodies across the globe are focusing on devising laws to regulate cryptocurrencies European Union developed the Markets in Crypto Assets (MiCA) law to create a legal framework designed for the market of crypto assets. Additionally, in February 2022, the Indian government made its move towards making cryptocurrency legal by announcing a 30.0% tax on any income generated by the transfer of digital currencies. Cryptocurrencies such as Bitcoin have been gaining traction in high inflation countries, including Argentina, Zimbabwe, and Brazil, as their local currency devalues.

Even though bitcoin is cutting-edge financial technology, its growth is expected to be constrained by the lack of regulations and a unified standard for exchanging digital currency. Regulators from all over the world are worried about the use of cryptocurrencies for unlawful purposes, which is a significant barrier to the market's expansion. However, law enforcement agencies are making efforts to seize illegally acquired cryptocurrency which bodes well for the market growth. For instance, in November 2021, IRS Criminal Investigation seized approximately USD 3.5 billion worth of cryptocurrency.

COVID-19 Impact Analysis

The COVID-19 pandemic halted global economic activity, although it is projected to positively affect the cryptocurrency market. The impact of the COVID-19 outbreak on the world economy has heightened uncertainty, which has drawn more attention to cryptocurrencies such as Ethereum, Bitcoin, and others. The banks started creating digital currencies backed by blockchain to enable Business-to-Business (B2B) crypto payments. In October 2020, the first Central Bank Digital Currency (CBDC) was launched by the Central Bank of Bahamas, named Sand Dollar. This launch of CBDC aimed to improve financial inclusion and strengthen security.

Component Insights

The hardware segment dominated the market in 2022 and accounted for more than 82.0% of the global revenue. Factors such as higher processing speed and reduced power consumption of cryptocurrency miners are expected to drive the growth of the hardware segment. The shifting consumer expectations have led many businesses to develop bitcoin mining hardware. Hardware such as graphics processing units, which are swift, effective, and stable, is needed to create mining devices. Such factors are projected to generate considerable growth prospects for the industry during the forecast period.

The software segment is anticipated to expand at the highest CAGR throughout the forecast period. The growth can be attributed to the increasing demand for software designed for the exchange and mining of cryptocurrencies. The development of software, to manage the massive volume of data generated by cryptocurrencies is expected to support the segment's growth. Furthermore, the growing demand for cryptocurrencies around the globe has increased the demand for crypto wallets and crypto exchange software, which is expected to augment the segment growth.

Hardware Insights

The application-specific integrated circuit segment dominated the market in 2022 and accounted for more than 43.0% of the global revenue. Application-Specific Integrated Circuits (ASICs) are electronic circuits designed explicitly for mining virtual currencies such as Bitcoin, Litecoin, and Ethereum. Several companies are adopting ASIC miners to mine cryptocurrency, with the growing need for low-energy consumption devices for mining crypto. Additionally, ASIC requires less maintenance and enables efficient use of energy, which is expected to support the growth of the segment.

The Graphics Processing Unit (GPU) segment is anticipated to expand at a promising CAGR throughout the forecast period. This growth is attributable to the growing demand for GPU for crypto mining as it offers high processing speed and consumes less power. Several crypto miners are encouraged to consider GPU for crypto mining. According to Jon Peddie Research Inc., statistics and trends provider in the computer industry, 25.0% of GPUs were sold to crypto miners in the first quarter of 2021.

Software Insights

The exchange software segment dominated the market in 2022 and accounted for more than 32.0% of the global revenue. The use of exchange software is essential for completing cryptocurrency transactions since it facilitates the conversion of cryptocurrency coins to fiat currencies and vice versa. The growing development of crypto exchange software to provide seamless trading of cryptocurrency is anticipated to aid the segment growth.

For instance, in March 2021, Open ware Inc., a Fintech software company, launched a crypto-exchange software platform with Exchange Liquidity Network (ELN) named OpenDAX3. It is designed to offer better exchange services to facilitate the trading of cryptocurrencies, assets, and security tokens.

The wallet segment is anticipated to expand at a higher CAGR during the forecast period. The growth of the segment can be attributed to the increased usage of cryptocurrency wallets since they offer consumers online tools for securely managing and storing blockchain assets and cryptocurrencies ability to store and exchange various cryptocurrencies including Bitcoin, Litecoin, and Ethereum is made possible via various multi-asset cryptocurrency wallets.

Additionally, several companies that offer cryptocurrency wallet services are concentrating on creating crypto wallets that let users send or receive cryptocurrencies through mobile applications. For instance, in January 2022, Robin Hood, a cryptocurrency wallet service provider, launched its upcoming beta version of cryptocurrency wallets. The wallet is created to allow its customers to trade, send, and receive cryptocurrencies using the Robin Hood application.

Process Insights

The mining segment dominated the market in 2022 and accounted for more than 74.0% of the global revenue. Blockchain transactions are validated and verified as a part of the mining process. New coins are inserted into the current supply chain by mining activities. To provide cryptocurrency miners with a better mining experience, many businesses around the world are concentrating on implementing and building crypto miner farms.

These crypto miner farms are in an excellent position to run their mining operations as they receive electricity from the public grid. For instance, in August 2020, Enegix, a mining facility operator, announced opening its 180 megawatt Bitcoin mining facility in Kazakhstan, which can accommodate up to 50,000 mining rigs.

The transaction segment is anticipated to expand at the fastest CAGR during the forecast period. The need for high-performance transaction services among organizations is rising, as a result of the quick development of technological advancements such as digitization and automation. As a result, many players worldwide are concentrating on creating Wallet as a Service (WaaS) to offer safe digital wallet choices for the businesses to carry out their transactions effectively in order to meet the demand for high-performance transactions.

For instance, in November 2021, Crypto APIs, a blockchain development company, launched Wallet as a Service (WaaS) in partnership with Sepior, a Fintech company.  The WaaS was created to provide small & medium businesses, institutions, and enterprises with secure and reliable multicurrency digital wallet to carry out cryptographic transactions.

Type Insights

The bitcoin segment dominated the market in 2022 and accounted for more than 36.0% of the global revenue. The segment is anticipated to develop at the fastest growth rate during the forecast period. Bitcoin is a virtual currency operating as a decentralized alternative payment method. The emergence of Bitcoin Exchange Traded Funds (ETFs) is anticipated to surge the volume of global bitcoin trades during the forecast period. For instance, in May 2022, Purpose Bitcoin ETF in Canada witnessed the biggest inflow of USD 207 million.

The Ethereum segment is anticipated to grow significantly through the projection period. Ethereum is an open software platform that allows users to build a range of decentralized applications. Due to the proliferation of new projects using the Ethereum network, there has been a considerable uptick in network traffic, which is directly related to the expansion of the Ethereum market.

Smart contracts were initially applied to algorithm-based financial transactions with Ethereum. On the blockchain network, smart contracts are written instructions for carrying out transactions. As Ethereum upgrades to Ethereum 2.0, which requires less energy and is less expensive to mine, the first-mover advantage is anticipated to support the growth of the cryptocurrency during the forecast period.

End-use Insights

The trading segment dominated the market in 2022 and accounted for more than 28.0% of the global revenue. Trading in cryptocurrencies enables users to purchase, sell, and examine asset balances and get deposit addresses. Several browser technology providers are concentrating on forming alliances with blockchain technology firms to enable their clients to trade cryptocurrency easily.

For instance, in March 2020, Brave Software, Inc., a browser technology company, entered into a partnership with Binance, a blockchain technology company, to enable its users to seamlessly trade cryptocurrency assets through Binance. Such factors bode well for the growth of the segment.

The retail & e-commerce segment is anticipated to expand at a promising CAGR during the forecast period. The rising number of retail & e-commerce companies that are accepting cryptocurrencies as an official payment method is one of the major factors driving the segment growth. Several cryptocurrency payment processors are entering into strategic partnerships with e-commerce companies to increase the acceptance of digital currencies for payments.

For instance, in May 2020, Coin Payments, a cryptocurrency payment processor, entered into a strategic partnership with Shopify, an e-commerce company, to offer a cryptocurrency payment platform to all Shopify merchants.

Regional Insights

Asia Pacific dominated the cryptocurrency market in 2022 and accounted for a share of above 30.0% of the global revenue. The dominance is attributable to the acceptance of cryptocurrencies in countries such as South Korea, Japan, and India. Moreover, the presence of the cryptocurrency mining companies such as Ebang International Holdings, Inc, Bit main Technologies Limited., Canaan, Inc. and others is expected to support the market growth in the region.

Furthermore, leading players in the region are entering into partnerships to address the competitive market. For instance, in February 2020, Canaan Inc., a China-based crypto mining hardware manufacturer partnered with Northern Data AG, a blockchain infrastructure firm, to pool together their technological and operational resources.

North American regional market is expected to grow significantly during the forecast period. The use of cryptocurrencies in NFTs in the region and the rising acceptance of cryptocurrencies as a form of value storage is driving the regional market's expansion. Moreover, the region is witnessing heavy investments in companies developing blockchain technology and cutting-edge solutions for cryptocurrency mining systems that have higher hash rates and better power efficiency.

For instance, In February 2022, Intel Corporation announced to contribute to the development of blockchain technology with a roadmap of energy-efficient accelerators. The company stated that its blockchain accelerator chip will ship later in the year. Argo Blockchain, Block & Grid Infrastructure is among their first customers for this upcoming product.

Key Companies & Market Share Insights

The cryptocurrency market can be described as a moderately fragmented market characterized by the presence of prominent players. Some of the key vendors in the cryptocurrency market are NVIDIA Corporation; Advanced Micro Devices, Inc; Intel Corporation; Binance; and Xilinx, Inc. Market leaders are driving the competition in the market by pursuing several strategies aimed at long-term sustenance, thereby making it challenging for new players to enter the market. The strategies followed by these companies include product innovations, a strong focus on R&D activities, geographical expansions, strategic partnership agreements, and joint ventures.

Key players are seeking strategic collaborations and partnerships to expand their offerings. For instance, In November 2021, Ripple partnered with the Republic of Palau to explore countries first national digital currency and its use cases with the XRP Ledger. This partnership aimed to develop cross-border payments and USD-backed digital currency for Palau. Strategic partnerships and collaborations are allowing businesses to develop innovative products and expand their sales across different geographies. Some of the leading players in the global cryptocurrency market include:

• Advanced Micro Devices, Inc.

• Binance

• Bit fury Group Limited

• Bit Go, Inc.

• Bit Main Technologies Holding Company

• Intel Corporation

• NVIDIA Corporation

• Ripple

• Xapo Holdings Limited

• Xilinx, Inc.

Cryptocurrency Market Report Scope

Global Cryptocurrency Market Segmentation

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 this study, Grand View Research has segmented the global Cryptocurrency Market based on component, hardware, software, process, type, end-use, and region.

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

  • Hardware

  • Software

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

  • Central Processing Unit

  • Graphics Processing Unit

  • Application-Specific Integrated Circuit

  • Field Programmable Gate Array

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

  • Mining Software

  • Exchange Software

  • Wallet

  • Payment

  • Others

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

  • Mining

  • Transaction

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

  • Bitcoin

  • Bitcoin Cash

  • Ethereum

  • Litecoin

  • Ripple

  • Others

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

  • Banking

  • Gaming

  • Government

  • Healthcare

  • Retail & E-commerce

  • Trading

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • South Korea

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa (MEA)