Blockchains are making their presence felt around the world. Several tech giants from Europe, Asia, and the Americas are experimenting with a distributed ledger for a variety of use cases. The trickle-down effect of this adoption has now started reaching small and medium-sized businesses as well, which are increasingly adopting Blockchain as a Service (BaaS). The trend could develop further and help the blockchain industry’s valuation swell to almost $10 billion by 2024. Data compiled by Esticast Research and Consulting show that there is no stopping blockchain technology from taking over the world.
What Do Data Predict?
New data predict that the global blockchain market that was valued at $26.1 million in 2016 will grow to $9.6 billion by 2024. During the next half a decade, the industry will grow with a compound annual growth rate (CAGR) of 60.8 percent. While the public blockchain sector will continue to grow exponentially, it will be the private sector that will dominate the market, contributing over 50 percent to the market.
IBM will be one of the most prominent corporations in the blockchain segment as it held over 10 percent of the global blockchain market in 2016 alone. The initial boost could help IBM become instrumental in the sector. Other important corporations in the segment will be Accenture Plc., Intel Corporation, Deloitte and Microsoft Corporation, among others.
Which Sectors Will Experience the Most Growth?
The banking, financial service, and insurance (BFSI) sector will experience the most widespread use of blockchain technology. It contributed over 75 percent of the total global blockchain market in 2016 and is expected to continue its dominance to 2024 as well. Growing demand for transaction processing will fuel the rapid growth in these sectors. The media and entertainment segment will grow at the highest CAGR of 64.9 percent during this period as blockchains could help remove intermediaries and ensure better content distribution.
Region-wise, North America will continue to hold the biggest piece of the blockchain pie, controlling over 40 percent of market share in terms of revenue in 2016. The highest rate of growth will be experienced in the APAC markets.
However, while growth will come quickly, adoption and issues related to awareness could stop these emerging markets from taking over on the global scale. The report details:
“Emerging market Central Securities Depositories (CSDs) could deploy blockchain as a tool, by which corporate actions could be complemented, and trade settlements will be speeded up. However, lack of technical understanding about the blockchain concept and lack of awareness about the Blockchain and uncertain regulatory status is supposed to curtail the overall market growth.”