The global blockchain market could reach USD 7,683.7 million by 2022, according to a new report from MarketsandMarkets. In 2017 it stood at USD 411.5 million. That works out to a compound annual growth rate of 79.6%. The research firm, based in Northbrook, Illinois, released the forecast on January 16, 2018.
The study breaks the market down by provider, application, organization size, industry and region. Applications covered include payments, exchanges, smart contracts, documentation, digital identity, supply chain management and GRC management. The report runs to 161 pages, with 77 data tables and 39 figures.
Several factors are pushing growth. Blockchain lowers the total cost of ownership and speeds up transactions. It also simplifies business processes because records are transparent and cannot be changed. In addition, rising cryptocurrency values and the wave of ICOs are fueling demand.
Providers and uses
Application and solution providers should hold the largest share during the forecast period. These vendors cut duplicated transaction data. They also provide regular reconciliation and authentication for business and regulatory needs. Some run international money transfer networks and cloud services built on blockchain, which make payments easier. Since they bring distributed ledgers to many industries, they could reshape digital business.
Digital identity is expected to be the fastest-growing application. It removes the need for a central authority or third party. As a result, people can manage and control their own personal data and access. Leading vendors are working on practical identity tools for financial and personal use.
Industries and regions
Banking, financial services and insurance (BFSI) should lead the market. The sector has seen how distributed ledgers can secure customer transactions. The shift from central infrastructure to distributed systems is also opening new models in payments and internet banking.
Real estate, by contrast, is projected to grow fastest. The sector still relies on paper records for land and property ownership. That makes the process slow and open to fraud. Blockchain keeps recording and sharing information, so it removes middlemen and gives buyers, sellers and officials full transparency. Some companies even offer token-powered platforms that give lifelong access to office space.
North America is expected to hold the largest share, followed by Europe. Many large industries are based there. They have already put smart contracts, documentation and payment tools to work, especially in BFSI and healthcare. More funding for distributed ledgers should keep the region growing. Wider use in logistics, retail, media, real estate and telecom will help too. Asia Pacific, meanwhile, should post the highest growth rate. That is because banks there are investing heavily in permissioned blockchain networks to cut costs.
The report names the main vendors. They include Abra, AlphaPoint, Amazon Web Services, Bitfury Group, BTL Group of Canada, Chain and Coinbase. Digital Asset Holdings, Earthport of the UK, Factom, IBM, Microsoft and Ripple are also on the list.
MarketsandMarkets provides B2B research on 30,000 high-growth niche opportunities and threats. It serves 5,000 customers, including 80% of the global Fortune 1000. The firm employs 850 full-time analysts and subject matter experts.