By Staff Writer
The global blockchain market size is expected to grow from USD3.0bn in 2020 to USD39.7bn by 2025, at a Compound Annual Growth Rate (CAGR) of 67.3% during the forecast period, according to consultancy Researchandmarkets (see here).
Driving the growth in the industry are various factors, such as increasing venture capital funding and investments in the blockchain technology, growing need to simplify business processes and create business transparency and immutability, reduction in operational cost, and increasing popularity of blockchain technology in retail and supply chain management.
However, uncertain regulatory and compliance environment and limited availability of technical skillsets for implementing the blockchain technology may restrain the blockchain market growth.
Retail and eCommerce segment to grow at the highest CAGR during the forecast period
Based on application area, the retail and eCommerce segment is expected to grow at the highest CAGR in the blockchain market during the forecast period. Retail and eCommerce organizations are making huge investments to enhance customer experience. The use of blockchain payments in the retail and eCommerce industry has increased during COVID-19 as several end-users are opting for use of cryptocurrency over conventional payment options. The blockchain technology is progressively elevating the customer experience. With positive customer experience, retail and eCommerce businesses are expected to achieve customer loyalty. The blockchain technology enables retailers to use smart contracts for settling any conflict related to customers without any intervention of the court.
Based on organization size, the large enterprises segment to hold a larger market size during the forecast period
Based on organization size, the large enterprises’ segment is expected to hold a larger market size in the blockchain market during the forecast period. The availability of sufficient capital and other resources to incorporate newer technologies is expected to enable large enterprises to take the lead in the market. Another factor that contributes to a higher market share of large enterprises in the blockchain market is the high investments in R&D activities to develop best-fit technology to enhance an organization’s business efficiency.
Among regions, North America to account for the largest market share, whereas Asia Pacific (APAC) to grow at the highest CAGR
North America is estimated to hold the largest market size and dominate the global blockchain market in 2020, as the region is an early adopter of the blockchain technology. North America is considered the most advanced region in terms of technology adoption and infrastructure. The regional presence of key industry players offering blockchain technology solutions is the main factor driving the North American blockchain market.
Asia Pacific (APAC) is expected to grow at the highest CAGR during the forecast period. Several new startups in APAC have entered the blockchain market and started developing blockchain solutions. Investors are investing in startups that are helping these small firms innovate the blockchain technology. The integration of the blockchain technology to transform business processes in the developing countries of APAC could boost the blockchain market growth in APAC.