Blockchain-as-a-Service - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Blockchain-as-a-Service Market size is estimated at USD 1.5 billion in 2024, and is expected to reach USD 3.37 billion by 2029, growing at a CAGR of 17.5% during the forecast period (2024-2029).

Key Highlights

• With the expansion of the cryptocurrency market, in December 2017, many new users have gained knowledge about blockchain and cryptocurrency, and started exploring the same. Thus, there has been a rapid rise of blockchain and cryptocurrency users. The bitcoin blockchain market has witnessed a steep rise over the past few years.
• Blockchain is often called the technology of trust, as they do not have a single point of failure and cannot be changed from a single computer. Furthermore, blockchain allows for the use of tools, like 'smart contracts,' which may potentially automate manual processes, from compliance and claims processing, to distributing the contents of a will. These are some of the desirable features, which are encouraging the BFSI industry to leverage blockchain.
• Blockchain requires huge investment when it comes to setting up infrastructure and maintaining it. It is much more resource intensive, as compared to traditional databases. It also consumes a huge amount of energy and requires huge bandwidth, which the developing countries are struggling for.

Blockchain as a Service Market Trends

BFSI is Expected to Occupy the Largest Market Share

• Blockchain-as-a-service offerings are revolutionizing the BFSI industry, as banks and financial service companies are among the most heavily invested enterprises exploring blockchain technology.
• This is due to the many, highly valuable decentralized applications of this technology, thereby giving rise to new business models in various areas, such as cross-border payments, remittance, exchanges, internet banking, trade finance, Know Your Customers (KYC), and risk and compliance.
• However, it is still in the nascent stage in the market, owing to which the banks and financial institutions are exploring the viable possibilities of this technology, and investing into the same, which is likely to boost the market growth.

Asia-Pacific is Expected to Witness the Highest Growth Rate

• After May 2018, the Chinese government has been promoting the adoption of blockchain technology, due to its multiple advantages. Majority of mining operations take place in China.
• A leading global ICT (information and communications technology) solutions provider, Huawei, announced the launch of its hyperledger-based blockchain service in April 2018, in China, to enable companies to develop smart contracts on top of a distributed ledger network for several use-case scenarios.
• Moreover, in Thailand, the government positively accepted cryptocurrency projects. Thai regulators established cryptocurrency licenses in 2018, to enable exchanges and ICOs. Clear and specific guidelines have been drawn for foreign blockchain businesses.
• Furthermore, the South Korean government also spent USD 880 million on blockchain development for 2019. Owing to all these factors, Asia-Pacific is expected to witness the fastest growth rate over the forecast period.

Blockchain as a Service Industry Overview

The potential of blockchain-as-a-service has been recognized by few of the world's largest software companies. The three big cloud providers, Amazon, Microsoft, and IBM, have developed blockchain-as-a-service platforms that are already available for their cloud customers. Blockchain startups are also hiring freelancers for a better talent pool.

• March 2019 -Tata Consultancy Services (TCS) collaborated with Microsoft and R3 technology (R3), to adopt a scalable cross-industry blockchain platform. Some of the anchor solutions that are being built on these platforms include skills marketplace, anti-counterfeiting of luxury goods, affordable mobility, and shared telecom infrastructure for 5G, and loyalty and rewards programs.
• February 2019 -IBM made the IBM Food Trust solution "generally available", and the latest company to experiment with this solution isAlbertsons Companies, the world's second-largest supermarket company, by sales.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support