The value of global blockchain technology market is expected to spike to USD 20 billion by 2024 from USD 315.9 million in 2015, according to a report of the US-based market intelligence provider Transparency Market Research.
"During the forecast years of 2016 and 2024, the global market is expected to rise at a [compound annual growth rate] CAGR of 58.7%," the report noted.
The growth will be driven mainly by “mammoth investments made by several startup companies working in the same field”. Significant number of blockchain businesses are focusing on mergers and acquisitions as key strategies, but there are also many who are enhancing their product portfolio, expanding geographically and increasing their blockchain capacity.
The report also noted that the level of competition is rising significantly thanks to the regular entry of new players and this trend will continue in the following years.
On the other hand, the increasing number of partnerships between blockchain companies and established “traditional” financial service providers is also driving the market growth. Another factor propelling the industry is the “enormous growth in cryptocurrency-based transactions, coupled with associated processes such as mining and hashing that require blockchain technologies”.
“Additionally, the banking sectors is growing extensively with leaps and bounds, further encouraging use of recent technologies like blockchain, consequently boosting growth in the global blockchain technology market,” the report noted.
Among the main obstacles to the industry's growth is the price volatility, especially in the context of bitcoin's fall, and the consequent downgrading of other cryptocurrencies. Lack of relevant source material in some underdeveloped and remote regions is also restricting the market's growth. The high cost of setting blockchain technologies is the main difficulty for new businesses with less capital to establish themselves. However, the introduction of cost effective solutions could reduce this restraint in the future.
In terms of regional development, the North American region is grabbing the lion’s share of the revenue, mainly thanks to a strong technological infrastructure and high awareness regarding blockchain processes. However, the rising awareness of blockchain in populous countries like India and China is expected to push up growth in Asia Pacific in the coming years too.
A similar report examining the blockchain industry, issued by Repotrbuyer, was more restrained in its forecasts and has said the market will be worth USD 6.2 billion by 2023.