Blockchain Interoperability Market size is expected to reach USD 6 billion by the end of 2036, growing at a CAGR of 26% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of blockchain interoperability was over USD 1 billion. This growth of the market is poised to be dominated by growing demand for DApps. In 2022, the number of users utilizing DApps rose to over 2 million in the globe. Therefore, the market demand for blockchain interoperability is also estimated to grow. Blockchain interoperability is thought to be useful for developing cross-chain decentralized apps (DApps), which enable a single dApp to function across many smart contracts on distinct blockchains.
Moreover, another main factor driving the market for blockchain interoperability is the expansion of blockchain alliances and consortiums. These collaborative projects bring together companies, startups, and technology providers to develop interoperability standards, protocols, and solutions. Additionally, they encourage information exchange and best practices, which progress the development and use of blockchain interoperability technology.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~26% |
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Base Year Market Size (2023) |
~ USD 1 Billion |
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Forecast Year Market Size (2036) |
~ USD 6 Billion |
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Regional Scope |
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Solution (Cross-Chain Bridges, Cross-Chain APIs, Federated or Consortium Interoperability)
The cross-chain bridges segment is predicted to account for 50% share of the global blockchain interoperability market during the forecast period. Cross-chain bridges are protocols that facilitate data and asset transfers between several blockchain networks. They make it possible to communicate and work together across blockchains with various topologies, consensus techniques, and smart contract languages. Furthermore, cross-chain bridges improve blockchain performance and scalability in several ways. For instance, they improve liquidity and value by giving consumers access to additional assets and marketplaces across many blockchains. Users may additionally relocate their assets and data to less populated, less expensive blockchains, which will lower costs and network congestion. Additionally, users can take advantage of cross-chain bridges' finest features, which include scalability, privacy, security, and programmability, from several blockchains. Moreover, growing adoption of bitcoin is also projected to dominate the segment growth. Approximately 49 million individuals owned Bitcoin as of February 2024. That is about 19 million more users than there were a year ago.
Vertical (BFSI, Healthcare, Gaming & Entertainment, IT & ITeS, Telecommunication, Food & Agriculture)
The BFSI segment is predicted to account for 30% share of the global blockchain interoperability market during the forecast period. This is since the industry requires effective transactions and safe data interchange. Furthermore, blockchain technology offers improved safety and openness, which makes it a perfect fit for the BFSI sector. Interoperability also makes it possible for parties operating on various blockchain networks to communicate with one another without difficulty, which facilitates cross-border transactions, interbank payments, and the processing of insurance claims. The adoption of blockchain interoperability solutions is further propelled by the strict regulations and compliance requirements that are specific to the BFSI sector. As a result, throughout the projected period, the BFSI category has the greatest market size.
Our in-depth analysis of the global blockchain interoperability market includes the following segments:
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Solution |
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Vertical |
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Application |
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North American Market Forecast
Blockchain interoperability market in North America region is poised to gather the highest revenue share of over 30% over the coming years. This growth of the market is set to be dominated by growing number of key vendors in the field of blockchain interoperability. Furthermore, the number of COVID-19 patients has significantly increased in the US, Canada, and Mexico and is still increasing. By April 26, 2023, there were over 103 million confirmed and presumed positive cases of COVID-19 in the United States, and over 2 million of these instances resulted in fatalities. Owing to COVID-19 pandemic, blockchain is expected to offer a number of security capabilities, such as decentralization, encryption, and cryptography, to protect patient privacy in the healthcare sector. Demand for e-commerce has increased as a result of the pandemic. Fintech and blockchain technologies are being used by businesses to modernize and streamline their processes.
APAC Market Analysis
Blockchain interoperability market in Asia Pacific region is also estimated to have notable growth over the forecast period. APAC is renowned for having a diversified blockchain environment, with China, Japan, Singapore, and South Korea being hubs for blockchain innovation. Additionally, the investment in smart cities innovation is also growing which is further estimated to dominate the market expansion in this region. Moreover, the blockchain interoperability industry is anticipated to increase substantially as long as the Asia-Pacific region keeps funding research and development. Additionally, this sector in this region is also expected to increase significantly due to rising investments and the number of blockchain businesses.
Author Credits: Abhishek Verma, Hetal Singh
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