Growing demand for decentralized and transparent systems drives the blockchain category

Blockchain Category - Procurement Intelligence

The blockchain category is anticipated to expand at a CAGR of 87.7% from 2023 to 2030. North America accounts for the largest share of the category. The increasing demand for digital processes in the business is boosting growth. Companies are focusing on adopting technology for smooth transaction processes and data transparency. For instance, in January 2022 Walmart used blockchain technology to improve its supply chain by tracing storage of goods within seconds using the technology.

DeFi is a financial system that is built on top of blockchain technology. It allows users to access financial services without the need for a central authority, such as a bank. DeFi is still in its early stages, but it has the potential to revolutionize the way individuals and/or businesses think about finance.

Companies are continuously focusing on partnering or developing their own technology. For instance,

• IBM is supporting the transformation of money into a digital form known as Central Bank Digital Currency (CBDC). Central banks are encouraging the issuing of digital coins instead of printing money to increase digital transactions. This would result in a rise in contactless payment with improved settlement and transaction times and less complexity and risk. Businesses will have enhanced control over monetary policy transmission, with built-in programming. IBM estimates that in 2023, 87 countries have started exploring CBDCs and 9 out of those 87 countries have launched a state-owned digital currency.

• In February 2023, MakerDAO, a prominent decentralized finance (DeFi) platform, has effectively integrated Chainlink's smart contract automation, a blockchain data provider, into its Keeper system responsible for upholding the stability of Maker's DAI stablecoin.

• In January 2022, Visa, the renowned payment company, partnered with ConsenSys, an Ethereum scaling company, to facilitate the integration of central bank digital currency (CBDC) networks with conventional financial institutions. Ultimately, customers will have the opportunity to utilize their Visa cards or digital wallets linked to CBDCs at any worldwide location where Visa is accepted.

• In June 2023, J.P. Morgan Chase developed a blockchain-based system, Onyx, for settling payments between banks. This system is designed to reduce costs and improve efficiency.

Category growth is expected to be fueled by the increasing global adoption of cryptocurrency. The utilization of blockchain technology in cryptocurrencies like Ethereum and Bitcoin is a key factor driving this trend. The rising demand for cryptocurrency is attributed to its advantageous features, including convenient transactions, protection against inflation, and heightened security.

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Blockchain Sourcing Intelligence Highlights

• The global blockchain category is fragmented, with numerous small and large players operating in different regions. The competition between players is intense as they strive to gain a wider customer base and improve customer experiences.

• The suppliers of this technology such as developers, and programmers, have increased over time, reducing the supplier’s bargaining power to some extent.

• Block development, transaction size, and volume form the most significant cost component in blockchain implementation. The overall cost also depends on the type of technology such as private, public, hybrid, or consortium.

• Most of the service providers offer complete services from designing applications, development of technology, maintenance, and others.

Blockchain Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market Intelligence along with emerging technology and regulatory landscape

• Market estimates and forecasts from 2022 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Market report in PDF, Excel, and PPT and online dashboard versions 

Cost Intelligence Highlights

Grand View Research has identified the following key cost components for the blockchain category:

• Block Development

• Transaction Size

• Transaction Volume

• Designing

• Consensus Protocol

• Node Hosting

• Maintenance

• Development

• Quality Assurance

• Type

  • Private

  • Public

  • Hybrid

Block development, transaction size, and transaction volume form the largest cost components of the blockchain category.

List of Key Suppliers in the Blockchain Category

• IBM Corporation

• ConsenSys AG

• LeewayHertz

• ELEKS Software

• Blockstream Corporation Inc.

• Bitfury

• Springcoin, Inc., d/b/a Spring Labs

• Chainanalysis

• Galaxy Digital Holdings Ltd.

• Markovate

• Appinventiv

• Accenture Plc

• Cubix