Global Blockchain Market Assessment, By Component [Platform, Services], By Technology Type [Public, Private, Hybrid, Consortium], By Use-Cases [Digital Identity, Payments, Smart Contracts, Supply Chain Management, Internet of Things, Others], By End-use [Banking, Financial Services and Insurance, Telecomm and IT, Energy and Utilities, Healthcare, Government, Manufacturing, Others], By Region, Opportunities and Forecast, 2017-2031F

Global blockchain market is projected to witness a CAGR of 36.30% during the forecast period 2024-2031, growing from USD 15.54 billion in 2023 to USD 185.10 billion in 2031.

The blockchain market is increasing rapidly, driven by venture capital investments. During Q1 2024, investors placed USD 2.49 billion in crypto and blockchain companies across 603 deals, which represents an increase of capital by over 29% and a deal count rise of more than 68% from Q4 2023. This renewed investment in commercial development comes after three consecutive quarters of decreasing spending, indicating strengthened market confidence. The major share of this inflow went to early-stage startups, and especially in areas such as Bitcoin layer 2 solutions, infrastructure and gaming. This influx of funds is driving innovation and expansion within the blockchain industry despite macroeconomic challenges such as high interest rates and inflation.

For instance, in January 2024, IBM Corp. and Casper Labs signed a partnership to develop a blockchain-based solution that provides improved transparency and accountability for generative AI Systems, allowing enterprises to deploy AI securely at large scale across the company’s ecosystem.

Optimization of Supply Chain Contributing Towards Blockchain Market

Demand for the blockchain market has increased due to supply chain optimization. Blockchain technology enables companies to establish transparency and traceability, which is essential for modern supply chains. An example of this is Walmart Global Tech, having used blockchain to track shrimp from Andhra Pradesh all the way to Sam's Club locations in the United States and demonstrated its benefits, such as end-to-end tracking. Enhanced clarity fosters improved transparency, reduces fraud, and strengthens compliance. As a result, there is a growing demand for blockchain technology to ensure higher quality and reliability in processes. Moreover, direct transactions are possible with the help of blockchain between a consumer and seller, which reduces costs by eliminating intermediaries. These technological advances will drive the blockchain market's substantial growth as companies want to have more efficient and reliable supply chain operations.

For example, in July 2023, Hyundai Motor and Kia Corporation launched an AI-powered, based on blockchain technology Supplier CO2 Emission Monitoring System (SCEMS) for tracking carbon emissions throughout their supply chain. This unique solution improves data transparency and precision, promoting sustainability and regulatory compliance.

Demand for Transparency and Security Fueling the Market Growth

The growth of the blockchain market in different regions and its implications on the global supply chain are governed by transparency, traceability benefits, and better security solutions used across industries. Blockchain is a secure, transparent transaction technology that facilitates such applications in finance - particularly with the advent of decentralized finance (DeFi) platforms to lower costs and avoid intermediaries. Further, healthcare blockchain helps to secure the patient’s records and make it safer while speeding up data sharing. For example, Estonia leverages blockchain to protect its 1.3 million patient health records leading the data accuracy and confidence of their patients through the ceiling. Interestingly, even governments are taking up blockchain to have an indelible record of their actions in creating transparent public services. Blockchain has been used in Indian public administration like NFT (non-fungible token) based land records of New Town Kolkata to improve efficiency and transparency.

For example, in May 2023, Microsoft Corp. and the blockchain interoperability project Axelar Foundation collaborated to provide solutions that improve transparency across several blockchains. The collaboration intends to make blockchain integration easier for developers.

Government Initiatives Acting as a Catalyst

Governments continue to drive blockchain revenue gains, with finance and procurement playing a key role, but the potential applications of this technology are vast. For example, South Korea has pumped USD 14.41 million into the development of blockchains where projects are run by The Ministry of Science and Information and Communication Technology (ICT) as well as the Korea Internet & Security Agency (KISA) to boost local expertise in this industry. For example, the Bank of Korea has initiated a project for Central Bank Digital Currency (CBDC) platform whereby it surveyed residents and businesses about how they perceive such digital currency. This improves digital payments and shrinks job searches. Similarly, in June 2024, the United States House of Representatives passed the Financial Innovation and Technology for 21st Century (FIT21) Act to offer regulatory clarity as well as consumer protections that safeguard digital asset innovation. Such initiatives exemplify how the government leverages blockchain technology to drive economic development.

For example, in May 2024, the House of Representatives passed the Deploying American Blockchains Act of 2023, which aims to promote blockchain technology's competitiveness in the United States. The bill directs the Secretary of Commerce to enhance blockchain deployment and application across various sectors.

Dominance of the BFSI Sector in the Blockchain Market

The BFSI industry dominates the blockchain market on account of rapid adoption and substantial investment into this transformational tech. In 2023, global financial services companies spent USD 4.2 billion on blockchain solutions as businesses attempt to utilize distributed ledger systems in a more meaningful way. Cross-border payment, Compliance, Trade finance, and digital asset trading are key application areas for blockchain. For instance, JP Morgan's blockchain service for payments settled in excess of USD 30 billion during the year to boost proof-of-efficiency from a technology standpoint. Furthermore, the BFSI remains at the forefront with blockchain easing compliance processes and improving trade finance transparency and a channel for tokenized asset trading. This prevalence is largely attributed to blockchain’s ability to offer improved efficiency, enhanced security, and cost-effectiveness, transforming traditional banking operations.

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North America Dominates with the Highest Blockchain Market Share

North America holds the largest share in blockchain market as various advanced technologies such AI, ML and IOT were integrated into blocchain States in the USA and blockchain are moving up one level higher to use this technology in public services and governance. Two major efforts were a pair of initiatives to streamline and reduce costs for certain processes in Delaware and Illinois, the federal programs started back in 2018. Western U.S. states like Wyoming pass crypto-friendly laws and establish institutions such as the Center for Blockchain and Digital Innovation in relation to blockchain technology. Furthermore, some projects of blockchain in North America are not industry specific which includes smart cities Central Banking Educational Reforms Identity management. The innovative application of blockchain technology to government and public services has resulted in increased data security, more effective processes, and greater transparency.

For instance, in July 2024, Amazon Web Services (AWS) introduced support for Sui in its Node Runner service. This enables developers to build and manage decentralized applications more efficiently, enhancing scalability and performance in blockchain environments.

Future Market Scenario (2024-2031F)

1. Blockchain will be more used by governments to secure voting systems, make public records transparent and streamline regulatory processes therefore red tape is cut down on corruption while increasing the trust in digital process across all levels of government.

2. Conventional financial platforms will support and displace existing DeFi systems, providing decentralized loans/investments/transactions excluding conventional banking infrastructures.

3. Increase in widespread use of blockchain technology that provides instant access and visibility from the source all the way through delivery, which enhances transparency and reduces risk related to fraud.

4. Self-sovereign digital identities will become standard, enabling individuals to securely manage and verify their identity online without relying on centralized authorities.

Report Scope

“Blockchain Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global blockchain market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

Report Attribute	Details
Base Year of the Analysis	2023
Historical Period	2017-2022
Forecast Period	2024-2031
Projected Growth Rate	CAGR of 36.30% between 2024 and 2031
Revenue Forecast in 2031	USD 185.10 billion
Segments Covered	Component, Technology Type, Use-Cases, End-use
Regions Covered	North America, Europe, South America, Asia-Pacific, Middle East and Africa
Key Companies Profile	Accenture plc, Alphabet Inc., Amazon Web Services, Inc., IBM Corp., LeewayHertz, Microsoft Corp., Oracle Corporation, SAP SE, TATA Consultancy Services Limited, Vechain Foundation San Marino s.r.l.
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfill your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

In the report, global blockchain market has been segmented into the following categories: 

• By Component
  • Platform
  • Services
• By Technology Type
  • Public
  • Private
  • Hybrid
  • Consortium
• By Use-Cases
  • Digital Identity
  • Payments
  • Smart Contracts
  • Supply Chain Management
  • Internet of Things
  • Others
• By End-use
  • Banking, Financial Services and Insurance (BFSI)
  • Telecomm and IT
  • Energy and Utilities
  • Healthcare
  • Government
  • Manufacturing
  • Others
• By Region
  • North America
  • Europe
  • Asia-Pacific
  • South America
  • Middle East and Africa

Key Players Landscape and Outlook

Key players such as IBM Corp. and Microsoft Corp., which provide a wide range of blockchain platforms for different applications, or JPMorgan Chase & Co. and The Goldman Sachs Group Inc that are among the financial leaders investing heavily in blockchain to be used for financial services contribute positively towards market growth, thereby boost up the Blockchain market. Startups, such as Chainalysis Inc. and Ripple Labs Inc., are further driving innovation in compliance and cross-border payments. The forward-looking statement of blockchain is great as major sectors like finance, healthcare and even government ready to adopt the technology extensively in coming times. The next growth spurt is likely to come from innovations in decentralized finance and digital identities, which would provide a new level of transparency as well as efficiency, while reducing operational costs and frauds.

In July 2023, In June, Fujitsu Limited and IHI Corporation collaborated on a separate blockchain initiative focused on improving the carbon offset credit trading market. The initiative is zeroing in on carbon neutrality as they are streamlining and digitizing the process of issuing J-Credits using blockchain technology for secure environmental value transactions.

Key Players Operating in Global Blockchain Market are:

• Accenture plc
• Alphabet Inc.
• Amazon Web Services, Inc.
• IBM Corp.
• LeewayHertz
• Microsoft Corp.
• Oracle Corporation
• SAP SE
• TATA Consultancy Services Limited
• Vechain Foundation San Marino s.r.l.

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• What is the current and future market size of the product/service in question globally or specific to different countries?
• How are the markets divided into different product/service segments and the market size and growth of each segment?
• What is the market potential of different product segments and their investment case?
• How are the markets predicted to develop in the future and what factors will drive or inhibit growth?
• What is the business environment and regulatory landscape specific to the product/service?

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