Blockchain in BFSI Market size was over USD 5.54 billion in 2023 and is poised to cross USD 600.69 billion by 2036, witnessing more than 43.4% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of blockchain in BFSI is evaluated at USD 7.46 billion.
The growth of the market can be attributed to the growing demand for increased transaction speed, scalability and reduction in processing costs in the banking and finance sector. In addition, blockchain enabled transactions are able to eliminate third-party payment gateways allowing fast-paced financial communications. Blockchain technology also allows insurance companies and banks to maintain a decentralized data, which is helpful in the prevention of cybercrimes. These are another set of factors expected to drive market growth in the coming years. Furthermore, rising need to simplify business processes and increasing venture investments in blockchain technology is projected to offer lucrative opportunities to the market in the near future. In 2019, blockchain startup companies around the world spent more than $2 billion in venture capital funding. The amount rose up to approximately 2.4 billion in the year 2020.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
43.4% |
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Base Year Market Size (2023) |
USD 5.54 billion |
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Forecast Year Market Size (2036) |
USD 600.69 billion |
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Regional Scope |
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The market is segmented by type into private, public, consortium, hybrid, and others, out of which, the private segment is anticipated to hold the largest share in the blockchain in BFSI market on account of the fact that private blockchain offers more opportunities to organizations for business-to-business use cases. Along with this, private blockchain services allow cost effective transaction reversal and efficient usage of available resources, which is also assessed to boost the growth of this market segment in the future. Additionally, on the basis of application, the smart contracts segment is evaluated to grow with the highest rate over the forecast period, which can be credited to the increasing demand for self-executing contracts across banks around the world, and the rising adoption of smart contracts for fraud prevention, verification and reduce the costs of execution.
Our in-depth analysis of the global blockchain in BFSI market includes the following segments
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By Type
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By Component |
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By Application
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APAC Market Statistics
On the basis of geographical analysis, the blockchain in BFSI market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Asia Pacific is anticipated to account for largest revenue share by 2036, on the back of increasing number of government initiatives to promote the usage of blockchain technologies in countries, namely Japan, China and India, as a result of their high efficiency and transparency. Apart from this, growing bitcoin trade in China is another crucial factor expected to drive market growth in the region.
Moreover, the blockchain in BFSI market in North America is anticipated to acquire the largest market share during the forecast period owing to the growing implementation of blockchain technology by banks and robust presence of leading international market players in the region.
· February 1, 2021: JP Morgan became the first global bank in the world to create digital coins for payments, known as JPM Coin, using blockchain tecahnology to enable 24/7, business-to-business money movement.
Author Credits: Parul Atri
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