Blockchain-as-a-Service Market Trend, Share, Growth, Size and Forecast 2028

Blockchain-as-a-Service Market Size

The global Blockchain-as-a-Service market size was approximately $2.1 billion in 2020 and is expected to be worth approximately $26.2 billion by 2028, with a CAGR of nearly 40.1% from 2021 to 2028.

The report offers assessment and analysis of the Blockchain-as-a-Service Market on a global and regional level. The study offers a comprehensive assessment of the market competition, constraints, revenue estimates, opportunities, evolving trends, and industry-validated data. The report provides historical data from 2018 to 2020 along with a forecast from 2021 to 2028 based on revenue (USD Billion).

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Blockchain-as-a-Service Market: Overview

In blockchain-as-a-service, firms make use of cloud solutions along with creating, hosting, and installing blockchain applications & utilities. Additionally, blockchain is a next-gen solution tool for customers, firms, and authorities for effectively connecting with each other as well as interacting in secured manner quickly with other users. Furthermore, blockchain technology is utilized in a slew of industries such as healthcare, consumer products, financial services, life sciences, manufacturing, and public utilities. This is projected to enlarge scope of growth of blockchain-as-a-service market over forecasting timeframe. Moreover, blockchain-as-a service helps in enhancing operations as well as operability of auto lending, bancasurance, cross-border payments, crypto tags, customer onboarding, EduScrypt, digital onboarding, fraud detection, Know Your Customer utility, digital onboarding integrated with KYC, and fund distribution activities. Apart from this, it improves transaction reporting, wholesale fund distribution, trade financing, and reinsurance contract activities.

Blockchain is a distributed database that allows the distribution and sharing of digital data or information by millions of users or nodes through a decentralized mechanism. Initially, blockchain technology was designed to manage the list of records called blocks for Bitcoin, a type of cryptocurrency. Blockchain-as-a-service allows its users to take advantage of cloud-based services and solutions in order to build, host or use their own blockchain applications and functions on the blockchain, while all the complicated backend work is managed by the cloud service provider.

Bitcoin uses blockchain technology as it acts like an immutable ledger and offers the entire trail for any transaction that took place till date. This gives the technology a tremendous potential in offering services to almost every industry and is prognosticated to register rapid growth in the forecast period. According to The IBM Institute for Business Value, by 2018, blockchain solutions will witness investment for ‘deposit-taking’ from about 91% banks out of 200 surveyed banks of 16 countries. In the BFSI sector, banks are searching for ways and means to share financial data and customer information in a secured manner across their company and BaaS (Blockchain as a Service)  is expected to play a leading role in the mechanism. All these factors are expected to propel the growth of BaaS as one of the modern software as a service offering in the coming years.

Blockchain-as-a-Service Market: Growth Drivers

Rise in demand for BaaS owing to COVID-19 pandemic along with escalating requirement of supply chain transparency across different business verticals will create new growth avenues for blockchain-as-a service market. Apart from this, massive need of reducing risks and necessity of improving efficiency of financial deals will drive market trends. Large-scale use of connected things and supportive government initiatives will protrude volume of blockchain-as-a-service market growth in ensuing years. Huge acceptance of blockchain-as-a service platform across small & medium enterprises will prove beneficial for expansion of blockchain-as-a service industry. Furthermore, increase in investment in large number of ventures depending on blockchain technology in nations such as the UK, Japan, and the U.S. will unravel new growth dimensions for blockchain-as-a-service industry in years ahead.

Individual clients or companies can use the blockchain technology to stay competitive in the market making the blockchain-as-a-service platform more advantageous. Implementation of BaaS model in smart payments is fueling the growth of the blockchain-as-a-service market. For instance, recently a new blockchain payments solution based on IBM blockchain technology was unveiled to provide both clearing and settlements of financial transactions on a single network by IBM, KlickEx Group, and Stellar.org. Whereas, complication involved in handling the infrastructure as well as the complex mathematical calculations in blockchain can restrain the blockchain-as-a-service market growth. Integration of the technology with the internet of things (IoT) to offer technologically advanced and efficient solutions across verticals is anticipated to pave the way for numerous opportunities in the blockchain-as-a-service market.

The global blockchain-as-a-service market segmentation is based on application, component, vertical, and region. The application segment is fragmented into payment, smart contracts, supply chain management, governance, risk and compliance management, identity management, and others. A smart contract is anticipated to have a substantial share in the global blockchain-as-a-service market. The component segment is bifurcated in tools and services. The vertical segment is categorized into BFSI, IT & telecom, healthcare, retail, manufacturing, logistics, government sector, media & entertainment, energy and utilities, and others (travel and hospitality & real estate). Owing to a high penetration rate of BaaS application in the banking and financial sector, BFSI segment is expected to register the highest share in the overall blockchain-as-a-service market. Regional segmentation of the blockchain-as-a-service market includes Asia Pacific, North America, Europe, Latin America, and the Middle East and Africa.

Report Scope:

Moreover, need for strong security and efficient functioning of BFSI sector will define growth of industry in ensuing years. Huge demand for high scalability, transaction speed, and low processing costs is likely to culminate into lucrative growth of blockchain-as-a service market over forecasting period. Growing need for automating manual processes, claims processing, and contract systems or tools will leverage blockchain-as-a- service industry space. However, blockchain requires high capital funding for deployment & maintenance. It also consumes massive proportion of power & high internet bandwidth and is less utilized in emerging economies. These are some of the factors that can stagnate & truncate growth of blockchain-as-a-service market.

Regional Landscape

North America To Make Huge Revenue Contributions Towards Global Market By 2028

Growth of blockchain-as-a- service market in North America over 2021-2028 is due to increase in use of blockchain technology in software firms as well as financial institutions such as banks and insurance sectors across countries such as Canada and the U.S. Thriving e-commerce and online retail activities will contribute enormously towards regional market proceeds over forecast timespan. Growing demand for real-time processing of financial transactions in small as well as medium-scale firms in countries such as the U.S. will propel scope of regional market growth in coming decade.

Competitive Landscape

Key players profiled in report and playing a prominent role in growth of market include:

• Microsoft Corporation
• Ardor Nxt Group
• IBM Corporation
• SAP SE
• Amazon Web Services, Inc.
• The Hewlett Packard Enterprise Company
• Consensys
• Deloitte Company
• Infosys Limited
• Huawei Technologies Co., Ltd.
• Accenture plc
• Oracle Corporation.

The global Blockchain-as-a-Service Market is segmented as follows:

By Application

• Payment
• Smart Contracts
• Supply Chain Management
• Identity Management
• Governance
• Risk
• Compliance Management

By Vertical

• BFSI
• IT & Telecom
• Healthcare
• Retail
• Manufacturing
• Logistics
• Government
• Media & Entertainment
• Energy & Utilities

By Component

• Tools
• Services

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa