The global blockchain market is expected to reach USD 57,641.3 million in the next five years. A new report by Million Insights suggests that the sector will see healthy growth at a compound annual growth rate (CAGR) of 69.4% within the forecast period between 2019 and 2025.
Blockchain technology is known to help monitor all types of crypto transactions. Also, the technology operates as a record-keeping and electronic transaction & record processing system. Through this solution, users connected over the network can track data via a secured network which eliminates the need for third-party validation.
The nascent market is expected to grow rapidly due to many benefits that it provides including the elimination of reconciliation, minimized error rate, and reduction in record delicacy. These benefits have attracted attention and investment from the financial and technological giants.
So far, the technology has proven that it can disrupt operations in the financial sector. Moreover, analysis indicates that the budding technology has created an impact on many other sectors of the economy including media, consumer goods, among others.
Blockchain Technology Implementation
The blockchain technology also managed to incorporate cryptos acting as a network on which they operate entirely. So far, a growing number of banks and financial institutions are cautiously but constantly investing in technology to enhance their operations.
Its distinctive and innovative structure has made it acceptable by all regulatory bodies. That acceptance has made international bodies like the International Monetary Fund (IMF) and central banks like the Bank of England to show significant interest in the technology.
Blockchain has brought with it new investment opportunities from which investors are currently benefiting. Many have already invested in the first phase to create products and services in the sector.
Even though the market is encountering security concerns and some regulatory uncertainties, the next five years are expected to see a bigger role of the technology in spanning diverse domains, financial transactions, and industries.
Interestingly, blockchain technology solutions make the database to be universally accessible enabling many institutions to utilize the same concurrently. Experts believe that universal access concurrently increases the efficiency of the system.
Market growth is boosted by growing demand for blockchain across media & telecom, public sector, healthcare, financial services, and transportation sectors.
The rising acceptance of crypto and the rising demand from the BFSI industry is also increasing the need for blockchain technology.
Many institutions and industries are adopting this technology since it offers instant settlements for financial transactions with an assortment of optimized options.
Some of the notable participants in the blockchain space include Ripple, Circle Internet Financial Limited; Microsoft Corporation; Deloitte; BTL Group; R3; Chain Inc.; Linux Foundation; IBM Corporation; Eric Industries, and Global Arena Holding, Inc. (GAHI).
Key Findings From The Report
The report states that the applications and solution component segment is expected to expand the CAGR of over 71.2% during the predicted period. In that context, timely authentication and reduced data duplication are the key benefits that are powering this continuous market growth.
Asia Pacific region is predicted to register the highest CAGR from 2019 to 2025. In this case, the ever-growing demand for blockchain technology in different financial institutions including banks is driving this impressive market growth and adoption.
The report further states that the public type segment is expected to grow at the fastest CAGR of at least 70.1% within the forecasted period between 2019 and 2025. This segmental growth is getting its support from adoption in government and institutions.
Subject to the enterprise size, the small and medium enterprise segment is expected to record the fastest CAGR of more than 70.7% in the predicted period. On its part, the digital identity application segment is expected to record the fastest CAGR in the coming years.
Back in 2018, the financial services type segment led the blockchain sector with the biggest share, and it is estimated to continue with its dominance in the next six years.