Decentralized Finance Market size is expected to reach USD 300 Billion by the end of 2036, growing at a CAGR of 51% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of the decentralized finance was USD 20 Billion. The growth of the market is on account of the increasing demand for decentralized finance platforms. Decentralized Finance, allows anybody from anywhere in the world to utilize DeFi services if they have a Bitcoin wallet and an internet connection. For instance, according to research decentralized finance users reached a peak of estimated 8 million unique users in late 2021, whereas figures in 2023 are considerably lower. Users can transfer and exchange their assets without waiting for bank transfers or paying customary bank costs eliminating the need for a centralized financial framework.
In addition to that, decentralized finance provides a wide range of financial services which include yield farming, insurance, decentralized exchanges (DEXs), stablecoins, and lending and borrowing platforms. This wide range of financial services is also expected to grow demand for DeFi technology in the forecast period.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~51% |
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Base Year Market Size (2023) |
~ USD 20 Billion |
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Forecast Year Market Size (2036) |
~ USD 300 Billion |
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Regional Scope |
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Components (Decentralized Application, Smart Contracts, Blockchain Technology)
The blockchain technology segment is predicted to account for 39% share of the decentralized finance market during the forecast period. The segment growth is due to the rising adoption of blockchain technology in the fintech industry. The Fintech industry's strongest assets at the moment are Money Transfer Applications facilitated by Blockchain. According to studies digital money transfers around the world in 2018 amounted to USD 64,173 million. Additionally, by promoting distributed trust, lowering transaction costs, and strengthening decentralized platforms, blockchain technology has the potential to replace the current underpinnings of decentralized business models, thus expected to spur the decentralized finance market growth in the blockchain technology segment.
End-user (BFSI, Retail & E-commerce, Media & Entertainment, Automotive)
The BFSI segment is predicted to account for 29% share of the decentralized finance market during the forecast period. The segment growth can be attributed to the ability of decentralized finance technologies to improve financial inclusion by giving underbanked and unbanked people worldwide access to financial services. According to data published by The World Bank around 1.7 billion people remain unbanked globally. By using public blockchains, the DeFi technology reduces the need for middlemen and promotes transparency attracting more individuals toward the BFSI sector. Moreover, a vast array of financial services, such as yield farming, insurance, stablecoins, decentralized exchanges (DEXs), lending, and borrowing platforms, are made possible by Decentralized Finance which is expected to contribute to the growth in the BFSI segment.
Our in-depth analysis of the global market includes the following segments:
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Component |
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Application |
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End-user |
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North American Market Forecast
The North America region is predicted to account for 34% share of the decentralized finance market by the end of 2036. The market growth in the region is also expected on account of the rising demand for DeFi applications in the region. As Decentralized Finance eliminates the requirement for a centralized finance paradigm and everyone anywhere can access financial services. Moreover, due to the increasing adoption, cryptocurrency has also increased the need for DeFi applications in the region. Studies show that approximately 46 million Americans (roughly 22% of the adult population) own a share of Bitcoin. Furthermore, the presence of key market players such as Blockchain App Factory, SDLCCorp, ScienceSoft, Uniswap and rising number of strategic initiatives such as Canadian Blockchain Research Institute and government support for blockchain projects are also expected to fuel the market revenue growth of this region during the forecast period. Additionally, the region benefits from a tech-savvy population, high internet penetration, and a strong culture of entrepreneurship, which further accelerates the adoption of decentralized financial solutions. Overall, these factors drive the expansion of the DeFi market across North America.
APAC Market Analysis
The Asia Pacific decentralized finance market is estimated to be the second largest, registering a share of about ~22% by the end of 2036. The market’s expansion of Decentralized Finance in the region can be attributed majorly to the leading fintech hubs in the region like South Korea, India, China, Japan, Singapore, and the Philippines. According to research, South Korea's fintech acceptance rate has reached 67% of the country's digitally active adults. In addition to that, India solidified its place as a prominent player on the global stage, placing third internationally in 2023 for fintech startup investment. Furthermore, progressive regulatory frameworks like the Monetary Authority of Singapore's (MAS) fintech regulatory sandbox and the establishment of the Singapore Fintech Association contribute to the flourishing DeFi ecosystem in the region. Additionally, the region benefits from the high adoption of blockchain technology. For instance, the number of registered blockchain-related enterprises in China is expected to reach 33,700 by 2022. The vibrant startup ecosystems, strategic geographic positions, and growing investor interest in Decentralized Finance projects serve as key drivers of DeFi market growth in the Asia-Pacific region.
Author Credits: Abhishek Verma, Hetal Singh
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