Blockchain in BFSI Market Highlights 2022 – 2030
The blockchain in BFSI market is estimated to garner a sizeable revenue by growing at a CAGR of ~74% over the forecast period, i.e., 2022 – 2030. 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.
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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.
Major Macro-Economic Indicators Impacting the Market Growth
The never-ending growth in internet accessibility around the world along with numerous technological advancements comprising 5G, blockchain, cloud services, Internet of Things (IoT), and Artificial Intelligence (AI) among others have significantly boosted the economic growth in the last two decades. As of April 2021, there were more than 4.5 billion users that were actively using the internet globally. Moreover, the growth in ICT sector has significantly contributed towards GDP growth, labor productivity, and R&D spending among other transformations of economies in different nations of the globe. Furthermore, the production of goods and services in the ICT sector is also contributing to the economic growth and development. As per the statistics in the United Nations Conference on Trade and Development’s database, the ICT good exports (% of total good exports) globally grew from 10.816 in 2015 to 11.536 in 2019. In 2019, these exports in Hong Kong SAR, China amounted to 56.65%, 25.23% in East Asia & Pacific, 26.50% in China, 25.77% in Korea, Rep., 8.74% in the United States, and 35.01% in Vietnam. These are some of the important factors that are boosting the growth of the market.
Global Blockchain in BFSI Market Regional Synopsis
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. The market in the Asia Pacific region is estimated to witness noteworthy growth over the forecast period 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 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. For instance, more than 85% of American and European banks and financial institutions began exploring the implementation of blockchain technology since 2018.
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The blockchain in BFSI market is further classified on the basis of region as follows:
- North America (U.S. & Canada) Market size, Y-O-Y growth & Opportunity Analysis
- Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth & Opportunity Analysis
- Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC, Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth & Opportunity Analysis
- Asia-Pacific (China, India, Japan, South Korea, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth & Opportunity Analysis
- Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth & Opportunity Analysis
Market Segmentation
Our in-depth analysis of the blockchain in BFSI market includes the following segments:
By Type
- Private
- Public
- Consortium
- Hybrid
- Others
By Component
- Platform
- Services
By Application
- Record Keeping
- Payments & Settlement
- Smart Contracts
- Digital Currency
- Compliance Management
- Others
Growth Drivers
- Increasing Demand for Enhanced Transactions in the Banking and Finance Sector
- Rising Venture Investments in Blockchain Technologies
Challenges
- Limited Awareness about Blockchain in BFSI Sector
Top Featured Companies Dominating the Market
- International Business Machine Corporation
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Deloitte Touche Tohmatsu Limited
- JPMorgan Chase & Co.
- Google LLC
- Microsoft Corporation
- Accenture PLC
- Amazon.com, Inc.
- Goldman Sachs & Co. LLC
- Hewlett Packard Enterprise Development LP
- Oracle Corporation
