The blockchain market has grown in the public conscience as a solution to the many problems businesses face today. In the financial industry, the technology has emerged as a disruptive tool capable of speeding up cross border payments, enhancing documentation or KYC, and reducing daily operational costs.
There is a compelling case to be made for the blockchain in this space, and according to Global Market Insight’s recent report, it is through its growing adoption by financial institutions that we will really see the market soar.
The report, called Blockchain Market Analysis – Industry Size, Share Forecast Report 2024 details the guiding factors that will impact the market’s development along with the primary drivers for market growth.
One key revelation from the report is that the blockchain market size is anticipated to grow at a CAGR of over 75% over the forecast time span. Aside from financial institutions, another major trend driving this growth forward is the ‘increasing market capitalization of the cryptocurrency’ as well. According to the report, the past couple of years have seen a significant surge in the cryptocurrency market, observing a 300% increase in 2017. In the future, more verticals and enterprises will continue to explore cryptocurrencies and subsequently, the potential of its underlying technology, the blockchain.
Setting the stage for deeper understanding, the report provides a background of the three key considerations in the blockchain market, providers, applications, and end-use.
Thanks to the growing demand for blockchain protocol, infrastructure providers are a significant force to be reckoned with, creating the essential building blocks for deployment and accounting for over 65% share in the blockchain market. During the forecasted period, application providers are expected to grow substantially as well, moving at a CAGR of over 85%. Application providers are to offer significant value to the market by minimizing data duplication and ultimately putting blockchain authentication and efficiency into action.
From smart contracts to digital identity and compliance, the applications of blockchain are numerous. Though, according to the report, Payments & Wallets are the leading application in the landscape. Not only does this application reduce costs, increase efficiencies, and eliminate the middleman, but it also provides transparency and trust along the way, something that has been hard to come by in the digital space.
In the coming years, Digital Identity is expected to present the most lucrative blockchain application of all with over 90% CAGR. During a time in which cybersecurity risks have become even more pervasive, Digital Identity will be a key driver for both increased security and blockchain adoption.
In banking, financial services, and insurance (BFSI) the blockchain is becoming a dominant technology and a point of competitive advantage. “It has been estimated that the blockchain-enabled process can assist the banking and financial service sector to save up to USD 20 billion annually in the infrastructure cost,” the report adds. It’s no wonder why the sector took up over 60% of the blockchain market share in 2017.
The healthcare sector is another potent source for blockchain innovation. In fact, it is anticipated to grow at a CAGR of 85% throughout the forecast timeline. Across the global healthcare industry, the blockchain will help us to serve our patients without limitations. Providing greater access to accurate patient data, both patients and researchers will have the information they need to make informed decisions, leading to a snowball effect in healthcare innovations.
Outside of Healthcare and BFSI, Government, IT Services, Media & Entertainment, and Transportation and Logistics are accepted as significant forces in the blockchain market. How will you find your own end-use and become a part of this rapidly growing, transformative market? It’s actually pretty easy. Join us for our BC Coach Program to uncover all of the relevant uses for the blockchain in your industry. Throughout the course, you’ll learn how to replace your business challenges with blockchain solutions and leave with a deployable use case to get you started in the new age of blockchain.