Blockchain technology has permeated across various industries by simplifying complex processes and enabling new business models through distributed ledger. Blockchain allows for direct peer-to-peer transactions without an intermediary, thereby removing inefficiencies and increasing transparency. The technology finds application in various domains including financial services, supply chain, healthcare and government. In financial services, blockchain is revolutionizing activities like payments, remittances, trade finance, insurance and capital markets by offering real-time transaction settlements. The growing demand for decentralized finance and digitization of assets is a major driver for adoption of blockchain solutions in banking and financial institutions.
The global Blockchain Technology Market is estimated to be valued at US$ 5.82 Billion in 2024 and is expected to exhibit a CAGR of 8.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Decentralized finance (DeFi) is emerging as a major trend in the blockchain technology market. DeFi refers to a variety of financial applications built on the blockchain that allow users to conduct transactions without relying on centralized intermediaries. Some popular DeFi applications include decentralized exchanges, lending platforms, insurance services and stablecoins. The increasing demand for transparency, autonomy and security in financial activities is propelling growth of DeFi. Furthermore, major technology companies are investing in DeFi startups to leverage blockchain’s potential of unlocking new business opportunities. For instance, in 2021, Binance Labs, the venture capital arm of cryptocurrency exchange Binance invested around $300 million in various DeFi projects. With growing mainstream adoption, DeFi is expected to gain more significance, presenting lucrative business prospects over the forecast period.
Threat of new entrants: The threat of new entrants is moderate as blockchain technology requires high capital and technical expertise. However, startups are bringing innovations at lower costs.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes. However, blockchain offers unique transparency and security features.
Bargaining power of suppliers: Technology providers and miners have high bargaining power as not many can provide core blockchain infrastructure and verify transactions.
Threat of new substitutes: Threat of substitutes is low as no other technology provides the same decentralized and immutable nature combined with transparency.
Competitive rivalry: The competition is intense among technology providers to capture more market share through innovations and partnerships.
The Global Blockchain Technology Market Share is expected to witness high growth.
Regional analysis: North America dominates the market currently due to strong technological readiness and frequent incorporation of blockchain projects across various industries. However, Asia Pacific is expected to rise at the fastest pace led by countries like China and India recognizing its potential to drive digital transformation.
Key players: Key players operating in the blockchain technology market are Ajinomoto Co., Inc., KYOWA HAKKO BIO CO., LTD., AMINO GmbH, Bill Barr & Company, IRIS BIOTECH GMBH, Taiwan Amino Acids Co. Ltd., BI Nutraceuticals, Sichuan Tongsheng Amino acid Co., Ltd, Wacker, Chemie AG, Adisseo, and CJ CheilJedang Corp. The players are focusing on partnerships to expand capabilities and explore new applications of the technology.
Source: Coherent Market Insights, Public sources, Desk research
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