By 2025 Blockchain Market Will Be Worth Upwards Of $28 Billion
A report by Meticulous Research suggests that by 2025 the current blockchain market would have a compound annual growth rate (CAGR) of 74.1% with an estimated worth of $28 billion.
Meticulous theorized as to why this area is emerging as the largest use of the technology:
“The rising need to transfer funds directly and securely to anyone and growing demand to reduce the cost of transactions propels the adoption of blockchain in this application area.”
Increasing Adoption of BaaS, increasing merchants accepting cryptocurrency, and growing interest in blockchain among financial institutions are the key factors driving the growth of the global blockchain market. However, regulatory uncertainty; limited scalability; security, and privacy; and lack of awareness are hindering the growth of this market.
On the basis of vertical, the global blockchain market is segmented broadly into ten major segments, namely, banking, financial services and insurance (BFSI); government; healthcare and life sciences; media and entertainment; retail and e-commerce; travel and hospitality; transportation and logistics; real estate; IT and telecommunication; and others. In 2017, the BFSI segment accounted for the largest share of the global blockchain market and is expected to grow at a CAGR of 70.0% during the forecast period.
Geographically speaking, North America is calculated to have the biggest share in the blockchain market. North America is a home to various global technology companies, which makes it a dominating market everywhere in the world. The Asia-Pacific blockchain market is expected to grow at the highest CAGR in the next few years, mainly associated to the rapid adoption of blockchain technology in the financial and supply chain industries. In addition, government initiatives and collaboration with private organizations to implement blockchain to secure current systems are further propelling the demand for blockchain in the APAC region.
The report further states that crypto adoption is strengthening the current tech markets citing examples of companies like Expedia, PayPal, Subway, Shopify, and Microsoft to have accepted digital currencies for payments.