The evolution of the blockchain technology, coupled with the meteoric rise of the cryptocurrency market, is transforming a growing number of industries and putting them on a trajectory of their own, suggests a new study by data provider Research and Markets.
“The demand for distributed ledger technology, reduced total cost of ownership, rising cryptocurrencies market cap and initial coin offerings, increasing demand for simplified business processes, transparency and immutability, faster transactions, and Blockchain-as-a-Service are said to fuel the growth of this market," according to the report.
Analysts at Research and Markets cite the growing importance and accelerating adoption of blockchain in several sectors, most notably among communication service providers, as developments that would create more opportunities for market growth.
The research team notes that the blockchain technology could be utilized to transform international trade and supply chain management, to develop programmable platforms, and to drive innovation in payments, smart contracts, and digital identities.
"Payments application segment is expected to hold the largest market size during the forecast period,” the study report says.
However, it also cautions about uncertainties in the regulatory environment across regions, warning that the lack of a common set of standards might hold back the overall growth of the blockchain market.
Asia-Pacific to record fastest growth
Research and Markets expects the blockchain market to expand to $7.68 billion by 2022, growing at a compound annual rate of 79.6%. The cryptocurrency market is valued at about $486.4 billion as of January 23.
According to Research and Markets, the Asia-Pacific (APAC) region will deliver the fastest growth during the forecast period.
It notes that APAC blockchain solution providers have been developing and designing cost-effective, user-friendly, and faster-processing cryptocurrency platforms that help expand the reach of blockchain applications in several industry verticals.
Large corporations and small and medium-sized enterprises (SMEs) in the region have been pouring huge amount of capital into R&D activities to find ways of exploiting the benefits of the technology.
Another growth driver for blockchain in the APAC is “the rapid transformation of the potential countries from semi-transparent to transparent real estate sector.”
Similar optimistic forecasts for the blockchain market were published recently by Netscribes and Gartner.