Web 3.0 Blockchain Market Size, Share & Trends Analysis Report By Blockchain Type, By Application (Cryptocurrency, Conversational AI, Data & Transaction Storage), By End Use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global Web 3.0 blockchain market size was USD 1.73 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 47.1% from 2023 to 2030. The growth can be attributed to the rising demand for data privacy through the decentralized identity of Web 3.0 and the technological advancements in the internet. The rapid rise in the popularity of digital assets such as cryptocurrencies, along with the deployment of the 5G and 6G technologies, is further expected to contribute to the growth. Furthermore, the growing usage of connected devices, along with the improved transaction processes, are further supporting the growth of the Web 3.0 blockchain industry.

Numerous players are focusing on developing Web 3.0 platforms to enhance operational scalability and flexibility for users. For instance, in February 2022, WazirX, a cryptocurrency exchange platform, launched a new Web 3.0 platform known as Shardeum to tackle the fundamental problems of scalability. Web 3.0 is the better internet where websites and applications are responsible for processing information in a humanoid way. Web 3.0 is mainly developed using blockchain technology and is powered by cryptocurrencies. Such product launches are expected to create lucrative growth opportunities for the industry during the forecast period.

Technologies such as machine learning, big data, and decentralized ledgers are also expected to drive the industry’s growth owing to the technological improvements on the internet. The evolution of the internet can be summarized in three stages. The first version of the internet, called Web 1, was widely available for use as the World Wide Web. It was made up of static pages that were connected by hyperlinks. Users at that time had little scope for communicating with the applications as the content production was in the early stages.

In Web 2, people could communicate with digital networks and generate the information required. Users could gather information and send data back to the server to receive more relevant data and other user-generated inputs. The evolution of Web 3 allowed users to store the information on a blockchain public ledger, which would be driven by artificial intelligence and blockchain technology.

The growing usage of Web 3.0 technology for many business applications such as smart contracts, digital identity, documentation, and exchanges is expected to drive the Web 3.0 market’s growth. Self-Sovereign Identity (SSI) is an effective way for digital identity in Web 3.0. SSI is a method of identity that centers the control of information around the user. SSI eliminates the need to store the user's personal information completely on a central database and offers individuals better control over what information they share, safeguarding their privacy. Such benefits of SSI in Web 3.0 is further expected to support the growth.

The rising adoption of Web 3.0 cryptocurrencies to automate transactions over the internet is also anticipated to drive the industry’s growth. At the same time, trading cryptocurrencies in Web 3.0 offers better benefits, such as decentralization and growth potential. Moreover, it does not require permission from the higher authorities, which is an additional advantage. Countries are also focusing on legalizing cryptocurrency laws to attract new players and make improvements. For instance, in March 2022, Dubai established the Dubai Virtual Assets Regulatory Authority law, which aims to regulate blockchain-based assets.

COVID-19 Impact Analysis

The COVID-19 pandemic is expected to have a positive impact on the Web 3.0 blockchain industry. Web 3.0, based on blockchain technology, has revolutionized the crypto landscape and the digital payment infrastructure. The COVID-19 pandemic has highlighted the need for digital infrastructure, and countries worldwide have started accepting technologies across smart contracts, exchanges, and digital identity. Moreover, the rising adoption of Web 3.0 cryptocurrencies for faster transactions is expected to drive the growth of the industry.

Blockchain Type Insights

The public segment dominated the market in 2022 and accounted for more than 56.0% share of the global revenue. The ability of the public blockchain networks to allow users worldwide to participate in the network without any restrictions is a major factor driving the segment’s growth. In a public blockchain, users worldwide can join the network, read, write and participate in the blockchain. Moreover, public blockchain offers high security, an open environment, total transparency, decentralization, and better distribution.

The hybrid segment is anticipated to register significant growth during the forecast period. The ability of the hybrid segment to offer permission-based and permissionless systems is a significant factor driving the growth of the segment. A hybrid blockchain is a combination of both public, and private blockchain where some part is controlled by the organization and others are made visible via the blockchain. Moreover, a hybrid blockchain offers the ability of the user to access information through smart contracts.

Application Insights

The cryptocurrency segment dominated the market in 2022 and accounted for more than 25.0% share of the global revenue. Rapid advancements in technological innovation, including digitization and automation, have led to the growing demand for high-performance cryptocurrency transaction services among enterprises. Hence to cope with the need for high-performance cryptocurrency transactions, several players across the globe are using blockchain technology solutions in cryptocurrency to carry out their transactions efficiently. The aforementioned factors are expected to drive segment growth.

The smart contracts segment is anticipated to register significant growth during the forecast period. The unchangeable, traceable, and secure smart contracts created using Web 3.0 blockchain technology make a more open and collaborative work environment. As a result of these inherent properties, smart contracts are more likely to expand, and more businesses would be able to cut costs and facilitate faster and safe transactions. Such factors bode well for the growth of the segment.

End-use Insights

The BFSI segment dominated the market in 2022 and accounted for more than 35.0% share of the global revenue. The increasing demand for Web 3.0 blockchain for scalability, better transaction speed, and reduced processing costs in the banking and finance sector is a major factor driving the segment growth. Additionally, transactions enabled by Web 3.0 blockchain technology eliminate the need for third-party payment gateways to allow faster financial communications. Moreover, Web 3.0 also enables insurance companies to maintain decentralized data, thus preventing cybercrimes.

The retail & e-commerce segment is anticipated to register the fastest growth during the forecast period. Web 3.0 offers various benefits in the retail & e-commerce industry. These benefits include faster payments, reduced costs, increased transparency, and improved security, which is a significant factor driving the segment's growth. Moreover, Web 3.0 includes distributed ledger technology that allows retail companies to collaborate easily and closely with supply chain partners, including retailers, importers, and distributors.

Regional Insights

The North American regional market dominated in 2022 and accounted for a global revenue share of over 37.0%. The rising acceptance of Web 3.0 in numerous operating systems, such as blockchain-based systems, is a major factor driving the growth of the regional market. At the same time, the presence of major blockchain solution providers such as Web3 Foundation and Helium Systems Inc. in the region is also accentuating regional growth.

The Asia Pacific is projected to emerge as the fastest-growing market during the forecast period. The rapid adoption of digitization using Web 3.0 among banking and finance companies is the major factor driving the growth of the Asia Pacific region. At the same time, the retail and e-commerce industries are growing in the region, which is one of the largest contributors to the blockchain industry. Such factors mentioned above bode well for the growth of the Web 3.0 blockchain in the Asia Pacific region.

Key Companies & Market Share Insights

The vendors operating in the Web 3.0 blockchain industry mainly adopted partnerships and collaborations to launch new products and offer blockchain solutions to various industries. The demand for Web 3.0 blockchain technology is attributed to the ability to simplify payment operations for businesses. Additionally, companies collaborated to leverage expertise and resources to offer clients highly integrated solutions. Companies also expanded their business in several other regions to serve a more diverse audience.

The companies operating in the blockchain technology space are trying to integrate enhanced technologies such as Artificial Intelligence (AI), blockchain, and others in their offerings. Enhanced technologies enable companies to improve their competitive edge and customer experience. The integration of blockchain technology offers a faster, reliable, and highly agile supply chain network. Some prominent players in the global Web 3.0 blockchain market include:

• Web3 Foundation (Polkadot)

• Helium Systems Inc.

• Ocean Protocol Foundation Ltd.

• Zel Technologies Limited.

• Kusama

• Livepeer, Inc.

• Filecoin

• Kadena LLC

• Polygon technology

• Terra

Web 3.0 Blockchain Market Report Scope

Global Web 3.0 Blockchain Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For this study, Grand View Research has segmented the global Web 3.0 blockchain market report based on blockchain type, application, end-use, and region:

• Blockchain Type Outlook (Revenue, USD Million, 2019 - 2030)

  • Public

  • Private

  • Consortium

  • Hybrid

• Application Outlook (Revenue, USD Million, 2019 - 2030)

  • Cryptocurrency

  • Conversational AI

  • Data & Transaction Storage

  • Payments

  • Smart Contracts

  • Others

• End-use Outlook (Revenue, USD Million, 2019 - 2030)

  • BFSI

  • Retail & E-commerce

  • Media & Entertainment

  • Pharmaceuticals

  • IT & Telecom

  • Others

• Regional Outlook (Revenue, USD Million, 2019 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • MEA

    • Saudi Arabia

    • UAE