A new research study projected that the global blockchain technology market size is expected to reach USD 7.59 billion by 2024, according to a new report by Grand View Research, Inc., registering a 37.2% CAGR during the forecast period.
Explaining why, the research firm said that increasing demand for this technology across financial services, consumer or industrial products, technology, media and telecom, healthcare, transportation, and public sectors is largely responsible for market growth.
Blockchain technology works as an electronic transaction-processing and record-keeping system. This allows various participants who are connected to the network, usually public, to track information through a secure network, thereby eliminating the need for any kind of third-party verification.
Increasing online transactions, digitization of currency, and secure online payment gateways are few of the major factors expected to fuel demand over the coming years.
The market is expected to exhibit significant growth owing to abundant benefits provided by this technology, such as eliminating need for any financial institution to authenticate transactions, eliminating reconciliation, reducing duplicative recordkeeping, facilitating faster settlement, and minimizing error rates. This technology allows access to databases from everywhere, thereby allowing multiple institutions to use it simultaneously to bring different systems nearer and help improve efficiency.
Major growth drivers include growing interest of the BFSI sector and increasing merchants accepting cryptocurrencies. The probable opportunity of this technology further includes instant settlement of various financial transactions and achieving optimized settlement options for netting and clearing process.
Further Key Findings From the Report Suggest:
In order to improve the efficiency of the underlying financial processes and help minimize risks, investments have been made in the technology by various financial institutions in association with key technology players
The public blockchain network segment is anticipated to witness significant growth over the forecast period, registering a CAGR of 39.2%. The market is still in the development phase and is, therefore, marked by an extensive presence of new developments in the technology and its integration.
Blockchain technology will also enable an irrevocable immediate settlement that will, in turn, restrict any kind of transactional changes once the request has been processed. These technological changes are expected to fuel market growth.
Some of the prominent vendors in the market are Chain Inc.; Circle Internet Financial Limited; Digital Asset Holdings; Eric Industries; IBM Corporation; Linux Foundation; Post-Trade Distributed Ledger; R3; Ripple; and Safello.