Blockchain Market Size: An Overview by Segments for 2023

It’s difficult to define the blockchain without going into too many of its technical details. Furthermore, we can’t really explain the details behind blockchain’s market size without explaining the concept. For these reasons, we will focus on the blockchain within its financial market environment.

In a financial context, think of blockchain as a ledger of transactions, a kind of trail that is both duplicated and spread out among an entire network of computer systems, each of them connected to the other. Whenever a transaction of information occurs, this transaction is documented on every piece of the ledger within the network.

What Is Blockchain’s Market Size?

According to the newest data, the total value of the blockchain market is estimated at $5.7 billion.

When talking about blockchain’s market size, we are actually talking about market sectors that use and invest in blockchain and blockchain-adjacent technologies. One way to segment the market is by application, middleware, and infrastructure providers, another by geography, but also by application of this technology. But the above figure presents the total size, no matter how you segment it.

(Precedence Research)

Application, Middleware, and Infrastructure

These three comprise the market’s component segments within our blockchain analysis. Infrastructure and protocol provision takes up 60% of all global revenue when it comes to blockchain markets. This is led by increased demand in protocols, such as Openchain and Hyperledger.

Applications and solutions take up roughly 21% of the market, while middleware is around 16%. Middleware represents the software and solutions that help developers create end-user apps and solutions.

(Precedence Research, Fact.MR)

North America Takes the Lead in the Blockchain Market

As far as the revenue share of the blockchain market is concerned, North America is in the lead with 38%, with Europe in second place at 26.5%. The Asia Pacific region is at 22.6%, while Latin America accounts for 8.3%.

Blockchain research shows that the most likely cause behind North America’s lead is the number of startups founded in this region due to the ever-increasing demand for the blockchain.

(Precedence Research)

Blockchain Market Growth Factors

One of the core driving forces behind all of this growth and development is the legalization of cryptocurrency. Proper regulation and legalization mean companies are more willing to invest in blockchain tech.

Another important part that makes up the further development of the blockchain market is the continually growing awareness consumers have about it. These technologies are growing more and more. Just a year ago, the bitcoin blockchain was 349 GB, and it has grown to 410 GB today (and counting).

(Fact.MR, Precedence Research)

Core Challenges to the Blockchain Market

Of course, no matter how strong its growth is, there are several challenges presented to the blockchain market and the future of blockchain technology. These can be divided into:

• Lack of skilled labor

• Lack of regulation

• Vulnerability caused by IoT devices

To put it simply, using and developing blockchain tech is a complex process that not anyone is trained for. Many companies and institutions simply lack staff knowledgeable enough to handle and implement it.

Furthermore, another challenge is presented in many unsecured IoT devices getting connected to the blockchain. Every one of them serves as a weak point for bad actors to breach the system.

Finally, regulation is a common issue for the entire blockchain/crypto/NFT sphere. For example, financial institutions are trying to find global blockchain system standards. Many people simply do not feel confident in investing in technologies that have very little regulation.

(Precedence Research)

Conclusion

Blockchain’s growth is apparent, and the market is growing strong. With a multitude of applications in not only financial transactions but also the utilization of smart contracts, better voting systems, and a safer management of data in basically every sector from education to government organization, the sky’s the limit for this technology.

FAQ

Sources:

• Precedence Research

• Fact.MR