The advent of bitcoin in 2009-2010 brought about a drastic change in the technology industry. The blockchain technology, being one of them is the latest digital ledger technology (DLT) that uses timestamps and cryptography for building stable and secure records. Fortune Business Insights (FBI) studies various factors contributing to the growth the global blockchain technology market in their report, titled “Blockchain Technology Market: Global Market Analysis, Insights, and Forecasts, 2018 – 2025”.
As per the report, the global market for Blockchain technology is estimated to exhibit a CAGR of 38.4% and reach a valuation of US$ 21,070.2 Mn by the end of 2025 from US$ 1,640.7 Mn in 2017. The forecast period is set from 2018 to 2025.
Companies worldwide are now increasingly investing in research centers for developing and deploying the blockchain technology. This, coupled with the rising investments by governments or public authorities are expected to further drive the blockchain technology market. Thus, increasing venture capital funding and investments in Blockchain technology, and the rising popularity of Blockchain solutions in retail and supply chain management sectors will create lucrative growth opportunities for the global Blockchain systems market during the forecast period.
However, uncertain regulatory and compliance environment and the limited availability of technical skills required for the implementation of Blockchain technology may hamper the market growth.
IBM Corporation Holds Largest Share in Blockchain Technology in terms of Revenue
Some of the leading players operating in the global blockchain technology market are Altoros, Microsoft Corporation, IBM Corporation, and Oracle Corporations. Among these, IBM Corporation is focusing on diversification strategy to gain a competitive advantage in the market. The company is focusing on improving the accessibility of their key Blockchain products such as IBM blockchain platform for IBM Cloud Private, IBM Blockchain Platform free 2.0 beta, and IBM blockchain platform for AWS.
This is intended to build a strong network, thus penetrating deeper into markets with untapped opportunity. Moreover, there are about more than eight ongoing projects with more than 130 associates, in 25 countries, all working to develop IBM’s Hyperledger Fabric Project. In 2017, IBM Corporation emerged dominant with the highest market share in terms of revenue
BFSI to Emerge Most Attractive Industry Type
The annual value of cyber-attacks and frauds in the BFSI segment is anticipated to be worth thousands of millions of dollars, making it a global challenge. In order to overcome this challenge, major players such as Deloitte and Microsoft Azure are focusing on introducing blockchain solutions and blockchain-as-a-service offerings. Thus, BFSI accounted for a major share in the global market for blockchain solutions in the year 2017.
Factors such as the rising need for faster and transparent transactions across various industry verticals around the world and the improved penetration “Proof of Concept” solutions in developing countries are likely to help the global market for blockchain solutions report a steady growth during the forecast period.
On the basis of deployment, ‘proof of concept’ is likely to emerge as the fastest growing segment during the forecast period. This is because of the rising need for optimization of online transactions facilities in both the retail industry and BFSI. Governments of various nations are investing considerably in the deployment of blockchain solutions in emerging industries such as healthcare and BFSI. According to Fortune Business Insights, this is likely to bode well for the global blockchain solutions market in the long run.
Alliances and Partnerships among Leading Players to Make North America Generate Lead Revenue
North America emerged dominant in the global blockchain technology market in 2017. The North America market was valued at US$ 820 Mn in the year. This was because of the increasing alliances and partnerships between service providers and key companies in the U.S. The blockchain technology market in Europe is likely to grow at an accelerated pace owing to the presence of several manufacturing industries in the region.