April 16, 2024

Blockchain Technology Market Is Estimated To Witness High Growth Owing To Its Wide Applications Across Various Industries

Blockchain technology offers a decentralized and distributed digital ledger to record transactions across a peer-to-peer network. It finds applications in various industries for purposes like secure digital payments, data protection, smart contracts and digital identities. Blockchain allows verification of transactions without the need for an intermediary. Key advantages include improved security, transparency, traceability and cost-efficiency. With rising use cases across industries like banking, supply chain, healthcare and government, the need for blockchain technology has increased greatly.

The Global Blockchain Technology Market is estimated to be valued at US$ 6.71 Mn in 2024 and is expected to exhibit a CAGR of 8.4% over the forecast period 2024 to 2030.

Key Takeaways
Key players operating in the Blockchain Technology 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 key players are focused on product innovation and collaborations to strengthen their presence in the market.
Key opportunities in the market include increasing focus on private blockchain networks by companies for specific use cases such as supply chain management. The COVID-19 pandemic has also boosted the use of blockchain solutions for contact tracing and supply chain visibility.
Technological advancements like integration of blockchain with artificial intelligence, IoT and big data are expected to drive new use cases. Hyperledger Fabric and Ethereum are widely used blockchain platforms.

Market Drivers
Rising focus on digital identity, digital payments and data privacy compliance are major factors boosting adoption of blockchain technology across various industries. Financial institutions are applying blockchain for faster and more secure settlements. Supply chain companies use blockchain for traceability and transparent sharing of records. Increased venture capital funding and investments in blockchain startups are further expected to propel the market growth over the forecast period.

Current challenges in Blockchain Technology Market
Blockchain Technology Market Demand is still nascent with several challenges that need to be addressed. Scalability is a major issue as the technology is unable to support a large number of simultaneous transactions. There are also concerns around the optimization of storage requirements and bottlenecks during validation of transactions. Lack of standards and regulations is hampering the widespread adoption of the technology. Concerns around privacy and security of sensitive data also act as obstacles for many organizations. Developing skills and expertise around Blockchain is another challenge as very few have in-depth knowledge of the underlying mechanism. Raising awareness and building trust amongst stakeholders also require focused efforts.

SWOT Analysis

Strength: Decentralized nature of blockchain eliminates vulnerabilities associated with centralized systems. Immutable and transparent transactions increase trust.

Weakness: Scalability issues lead to bottlenecks and restrict the number of simultaneous transactions. Cryptocurrencies face volatility in price movements.

Opportunity: Wide scope for applications across industries like finance, supply chain, government services etc. Growth of cryptoassets attracts greater investor interest.

Threats: Changing regulatory stance and lack of standards create uncertainty. Security threats from hackers target vulnerabilities.

Geographical regions In terms of value, North America accounts for the largest share of global blockchain technology market, followed by Europe. This is attributed to early adoption by organizations in financial services and other industries. Presence of major technology players and supportive regulations drive growth.

Asia Pacific is projected to witness the fastest growth during the forecast period. Increasing investments in blockchain infrastructure from both public and private entities across China, Japan and other countries offer significant opportunities. Growing focus on digital transformation initiatives incorporation distributed ledger technology is fueling regional market expansion.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it