In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
The global crypto asset management market is estimated to grow with a high CAGR during the forecast period, i.e., 2022-2030. The increasing investments in crypto asset management technology, along with the rapid growth of blockchain technology, are expected to fuel the progress of this market. Along with this, rise in investments in cryptocurrencies worldwide as a result of their high profitability potential is also expected to support the growth of the market in the near future. The growth of the market can also be attributed to factors such as the rise in venture capital investments globally and growing need to safeguard crypto assets. Furthermore, the influx of multiple cryptocurrencies in the market is projected to lead to the growing demand to secure crypto asset and network.
According to a report published by the World Economic Forum in 2021, cryptocurrency is being increasingly used in developing countries. Nigeria tops the list of cryptocurrency user countries globally with 33% population either using or owning cryptocurrency. The dependence on remittances and use for peer-to-peer phone payments have led to a rapid rise in the use of cryptocurrency in Nigeria.
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The market is segmented by application type into web-based and mobile, out of which, the mobile segment is anticipated to grab the largest share by the end of 2030 on account of the creation of various mobile-based applications worldwide for trading in cryptocurrency. Moreover, these applications provide ease of operation for asset traders and miners, which is also projected to contribute to the growth of the segment during the forecast period.
On the basis of end-user, the individual user segment in the global crypto asset management market is projected to grow with a significant CAGR over the forecast period. The growth of the segment can be attributed to the increase in the number of individual users of cryptocurrency, which in turn is assessed to bring a surge in the usage of crypto asset management platforms in the future.
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.
Geographically, the market is segmented into North America, Latin America, Europe, Asia Pacific and the Middle East & Africa. The market in the Asia Pacific is predicted to grow at the highest CAGR over the forecast period owing to the increased inflow of remittances in emerging economies and the geographic expansion in the region by major market players. Furthermore, the market in North America is evaluated to occupy the largest share in terms of revenue during the forecast period, ascribing to the strong economic development, accompanied by the presence of leading market players dealing in crypto asset management solutions in the region. Alternatively, the market in Europe is also anticipated to occupy a significant share on account of the rising awareness about crypto asset management and high focus on digitization by the governments in the region. As per the latest development report on European Union Blockchain Ecosystem, in 2018, 21 European Union member countries, along with Norway, signed a declaration for creating a European Blockchain Partnership with the aim to provide digital public services to the required level of digital security and maturity of the present society.
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The global crypto asset management market is further classified on the basis of region as follows:
Our in-depth analysis of the global crypto asset management market includes the following segments:
By Application Type
Ans: The increasing investments in crypto asset management technology and the rapid growth of blockchain technology are the key factors driving market growth.
Ans: The market is anticipated to attain a high CAGR of ~28.8%, over the forecast period, i.e., 2022-2030.
Ans: Regulatory challenges related to cryptocurrency use and the limited technical knowledge for cryptocurrency trading among users are estimated to hamper market growth.
Ans: The market in Asia Pacific region will provide ample growth opportunities owing to the increased inflow of remittances in emerging economies in the region.
Ans: The major players dominating the crypto asset management market are Coinbase, Inc., Gemini Trust Company, LLC, BitGo, Inc., and Crypto Finance AG, among others.
Ans: The company profiles are selected on the basis of revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by application type, end-user, and by region.
Ans: With respect to end-user, the individual user segment is anticipated to hold the largest market share owing to the increasing number of individual users of cryptocurrency.