Blockchain technology’s burgeoning market is set to exceed the billion-dollar mark, with a new report crediting rising demand for immutability of information on networks.
The Blockchain Technology Market report by Future Market Insights says the capability of blockchain technology to accommodate immutability of data will motivate end-users to accelerate adoption over the forecast period of 2020 to 2030.
As a result, it says, by the end of the forecast period, the global blockchain technology market value is estimated to grow more than 35 times its value in 2019.
Future Market Insights explains that blockchain technology is constituted of ordered records distributed in a block structure. Every data block contains a hash of unique identifiers like digital fingerprint, time-stamped batches of transactions, and a hash of the previous block.
In this design, it says, each block is connected in chronological order. “The interconnected blocks constitute a blockchain. Practically, it is not possible to change or modify any block in the middle of the chain. This is because all the blocks located after the modified block are required to be modified at the same instant,” Future Market Insights states.
The company projects that the blockchain technology market will exceed the $1.5 billion mark by the end of 2020.
“The global market is projected to offer an incremental opportunity worth more than $55 billion in the forecast period of 2020 to 2030,” reads the report.
It also says blockchain-based supply chain management is the primary use case in the global market, followed by decentralised finance, while large enterprises will continue being the primary contributors to the growth of the blockchain technology market on a global scale.
Further, the report cites the banking, financial services and insurance (BFSI) industry as the primary contributor to market growth, with transportation and logistics industries following suit.
The report says blockchain will remain important for the BFSI industry.
“Blockchain technology providers are recording considerable procurement from the demand side for supply chain management applications. Vendors are striving to target customers requiring decentralised finance in order to open up an additional stream of income.”
A decentralised offering, especially in the banking sector, can reduce the chances of fraud by eliminating intermediaries, says Future Market Insights.
“Blockchain effectively removes vulnerability to cyber attacks, breach and theft, making it a safer choice.
“Blockchain infrastructure set-up demands inherent complexities. Since the technology has not achieved commercialisation on a global level, the demand for middleware solutions for integration, analytics and correlation, along with governance and security, is likely to rise among technology procurers,” says the report.
Assessing the competition landscape of the blockchain technology market, the report says as the technology is lagging behind in global diffusion, blockchain technology start-ups are striving to develop long-term partnerships with blockchain technology integrators.
“The move comes in order to ensure steady revenue generation during the forecast period. Start-ups are partnering up with artificial intelligence-based technology developers in order to market comprehensive solutions for decentralised financial applications,” it says.
“Market leaders such as Bitfury Group are focusing on expanding their blockchain portfolio to include hardware solutions that enable end-users to transfer or share assets swiftly and securely over a blockchain-based network.”