Growing demand for decentralized and transparent systems drives the blockchain market growth

Blockchain Procurement Intelligence

Heightened demand for digital processes in the business has spurred blockchain procurement. The global market size stood at USD 17.5 billion in 2023. Meanwhile, North America accounts for the largest share of the global landscape. 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 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 estimated that in 2023, 87 countries had started exploring CBDCs and 9 out of those 87 countries launched a state-owned digital currency.

• In February 2023, MakerDAO, a prominent decentralized finance (DeFi) platform, effectively integrated Chainlink's smart contract automation, a blockchain data provider, into its Keeper system, which is 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.

The market 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 market 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 number of suppliers of this technology, such as developers and programmers, has increased over time, reducing the suppliers’ 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 service providers offer complete services, including application design, technology development, maintenance, and other services.

Blockchain Procurement Intelligence Report Coverage

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

• Market Intelligence, along with emerging technology and the regulatory landscape

• Market estimates and forecasts from 2024 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

As part of the blockchain procurement intelligence report, Grand View Research has identified the following key cost components:

• 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 blockchain.

Blockchain - Key Suppliers

• 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