The global Blockchain market size is expected to grow from USD 4.78 billion in 2021 to USD 94.65 billion by 2027 at a CAGR of 64.5%.
Impact of COVID-19 on Global Blockchain Market
Blockchain technology ensures security and transparency within transactions. Endless opportunities and solutions the blockchain can offer many industries and consumers have created an increase in interest over the past few years. Recently, the need for blockchain technology has grown when a single microbe shows how connected the world is and how supply-chain networks and transport providers are weakened when unexpected demand for essential goods (defense equipment and testing equipment) arises from COVID-19 disease. Various levels of regulations imposed by national and local governments around the world over concerns about COVID-19 are delayed and disrupt almost all procurement networks. COVID-19 not only restricted the flow of goods and people but also slowed down the development of blockchain technology itself.
Driver: Increased investments and venture capital funding in blockchain technology
Blockchain companies have already raised more than USD 7 billion in business revenue and private funding in H1'21, the highest amount collected during a full year in history. Even legacy financial institutions bet on space. The blockchain record year is driven by increasing consumerism and the need for a center for cryptocurrencies. Both groups are slowly starting to move the needle to help crypto and, therefore, blockchain has become the norm.
Restraint: Uncertain regulatory landscape
The US government has general unequal control of digital finance and blockchain. New and sophisticated technologies are therefore part of the learning curve of regulators and government officials. There are also many agencies that claim to have control over digital assets separately, making it very difficult for companies to know how they operate in the US sector. The industry needs clear rules and regulations or the government is completely backed up as it did in the early days of the internet.
Opportunity: Government initiatives
Blockchain received major authorization in 2020 when the Congressional Blockchain Caucus urged President Trump and party officials to write a strategy to fight coronavirus. Caucus members in a September 2020 letter urged fellow leaders to consider blockchain use in the COVID-19 epidemic as an effective contribution to identity protection, secure chains, and registration, in addition to supporting other serious use cases. High-interest rates in the blockchain are not confusing, yet. Epidemics and the resulting challenges in areas such as the economy, health care, and supply chain have revealed significant shortcomings in existing processes and supporting technology infrastructure. As a result, officials at various levels, from the government to retail, have faced major security and visibility issues, among other major vacancies.
Challenge: Data security and privacy concerns
Blockchain is one of the most exciting developments in the technology space in recent years. However, blockchain technology and data privacy rules and regulations have been greatly improved independently. Improved data protection systems with increasingly risky fines incentive businesses to continue to review their privacy practices. Significant clarity and complexity are currently available to organizations that apply data privacy requirements to blockchain technologies and related services.
Retail and ecommerce segment to grow with the highest CAGR during the forecast period
The blockchain marketplace for eCommerce is different. Not controlled by any organization. It connects people directly with others through a distributed peer-to-peer network instead of keeping it on a central website. The blockchain-based eCommerce market helps pay directly between the buyer and the seller, usually through cryptocurrencies. Some of the Blockchain eCommerce markets available today include; Open Bazaar, Scanetchain, Blockscart, Soma, Cybermiles, GAMB, eCoinmerce, Bleexy and Origami Network.
North America to hold the largest market share during the forecast period
North America dominated the market in 2021 and accounted for more than 35.0% of global revenue. The increasing adoption of blockchain technology by organizations in the region is driving regional market growth. Industries such as government, retailers, and BFSI use payment and wallet solutions, smart contracts, and digital identity acquisition solutions, which create the need for blockchain technology. In addition, the presence of a large number of players in the region also promotes regional market growth.
The major players operating in the global Blockchain market are IBM (US), SAP (Germany), Oracle (US), Intel (US), AWS (US), Huawei (China), Accenture (Ireland), Wipro (India), Bitfury (Amsterdam), Chain (US), Blockcypher (US), Guardtime (Estonia), Cegeka (Netherlands), Symbiont (US), Spinsys (US), BigchainDB (Germany), Applied Blockchain (UK), Auxesis Group (India), Infosys (India), NTT Data (Japan), R3 (US), Consensys (US), RecordsKeeper (Spain), Factom (US), Blockpoint (US), Stratis (UK), Blockchain Foundry (Canada), Leewayhertz (US), and Dragonchain (US).