By Staff Writer
Global blockchain market is projected to grow by 66.2% between 2019 and 2027, thanks to the increasing digital transactions, which require security, transaction transparency, and low-cost transactions, an industry survey has found.
In other words, the blockchain market size is expected to reach $128,802mn in 2027 from $710mn in 2017.
The industry is likely to be driven primarily by blockchain consortiums spearheaded by large global corporations such as Microsoft and IBM, according to Seattle-based Coherent Market Insights.
Since they are trusted blockchain networks made up of multiple organizations, the transaction approval speed of consortium blockchain is higher than public blockchain, the report said. One example the report mentioned is Microsoft’s partnership with blockchain consortium R3 to make it easier for financial institutions to deploy blockchains in its Azure cloud.
In terms of application, however, the supply chain segment is expected to grow fastest over the same period, owing to the increasing need for transparency and rising demand for enhanced security of supply chain transactions. For instance, IBM has a collaboration with 10 food suppliers, including brands such as Nestle, Tyson Foods, Unilever, Walmart, and Kroger, to track food products from farm to grocery store shelves in the interest of efficiency and food safety.
In terms of geographical region, Asia Pacific is expected to be the most lucrative market for blockchain technology over the forecasted period, owing to factors such as digitization of currency and safe online payment gateways, and increasing online transactions in the region. Also, key players in the Asia Pacific region are launching blockchain technology platforms. For instance, in July 2018, IBM launched a blockchain platform exclusively for banking and financial services in China and the Monetary Authority of Singapore’s initiatives aimed at digitizing Singapore dollar.
The major impediment for blockchain technology development is the regulatory landscape of distributed ledger technology, which is immature and complex, the report said. Moreover, the regulatory landscape is different for all the components of distributed ledger technology.
The regulatory environment for the cryptocurrency sector is complex due to unclear and complex rules and regulations of various countries. Some economies such as U.S, Canada, China, South Korea, Singapore, India, Australia, and Russia are not yet recognizing cryptocurrency as a legal currency, while countries such as Japan, Switzerland, and South Africa are relaxing rules and regulations for the use of cryptocurrencies.
Some of the major players operating in the global blockchain technology market include Accenture Plc, Amazon Web Services, Inc., Advanced Micro Devices, Inc., IBM Corporation, Infosys Ltd., Intel Corporation , Microsoft Corporation, NVIDIA Corporation, SAMSUNG, SAP SE, Siemens AG, Xilinx, Inc., and others