Global Smart Contracts Market to grow around USD 9850 million by 2030

The global smart contracts market size was worth around USD 1750 Million in 2022 and is predicted to grow to around USD 9850 Million by 2030 with a compound annual growth rate (CAGR) of roughly 24% between 2023 and 2030

Smart contracts are computer programs designed on a blockchain capable of running when the predefined conditions are fulfilled. Typically, smart contract technology is used to execute various predetermined agreements by the party's conscience without the help of an intermediary. The technology is also widely used to automate a workflow or trigger the next step of action once the initial conditions are met. Smart contracts work on “if/when/then” statements that are coded in the blockchain.

A network of computers aids the action once the predefined conditions are met and verified. Some examples of such actions include releasing funds to the concerned party, sending notifications, registering vehicles, or issuing a ticket. Once the transaction is completed, the blockchain is notified and the transaction cannot be undone with only the specified parties being able to see the outcome.

Smart contracts are becoming extremely popular as they are self-executing contracts that involve the agreement between the two parties directly written in the codes which results in the information becoming a part of a decentralized and distributed blockchain network. The codes are in complete control of executing the task.

Some smart contracts enable trusted transactions to be carried out between anonymous and disparate parties without any interference from the legal system, central authority, or any other form of law enforcement. Even though the transactions carried out with the aid of smart contracts are irreversible, they are traceable and transparent thus lending security to the whole process. Some of the benefits offered by smart contracts involve improvement in speed, efficiency, and accuracy of the work because there is no delay in executing the contract once the conditions are met. They offer high security since all of the transactions are encrypted and cannot be decoded easily. It also aids in saving unnecessary costs by eliminating the need to hire intermediaries to carry out the tasks.

Covid-19 resulted in the smart contract industry cap receiving a positive push. Since almost all sectors were in temporary lockdown, organizations and business players were keen on finding solutions that involved less interaction and eliminating the need wherever possible. This was especially witnessed in the banking and healthcare sector where banks invested in automating processes that could be done virtually, and the healthcare industry used the smart contracts technology to maintain and document patients' records efficiently.

The global smart contracts market is anticipated to grow during the forecast period because of the higher adoption rate of the technology by industry giants as well as the emergence of many players offering efficient smart contracts technology to the end-users. Almost all industrial sectors have found some form of application for smart contracts in their businesses. For example in the healthcare sector, blockchain technology is used to safeguard the medication’s efficacy.

IBM and Sonoco are working together to reduce issues arising during the transportation of lifesaving medications by upgrading and increasing transparency in the supply chain. This is achieved with the help of Pharma Portal which is powered by IBM Blockchain Transparent Supply. The portal is capable of tracking temperature-controlled pharmaceutical products through the supply cycle. Such innovative applications of smart contracts may aid global market growth.

The advanced coding used in creating smart contracts may restrict the smart contract industry growth

Benefits offered by smart contract in every sector is expected to provide expansion opportunities

The lack of skilled professionals is projected to challenge market cap growth

The global market is segmented based on technology, end-user, platform, and region.

By technology, the global market segments are ripple, namecoin, and Ethereum. In 2022, Ethereum led the segmental growth with around 43% of the global market share and a value of USD 62.35 million.

Based on the end-user industry, the global market segments are healthcare, banking and insurance, transportation/logistics, automotive, government, and sports & entertainment. The largest market share was held by the government sector in the year 2020 with over 36.67% and a market value of USD 53 million. The supply chain managed to generate a market value of USD 37 million in 2020

By platform, the global market is segmented into sidechains, Ethereum, bitcoin, and NXT. Ethereum generated a revenue of USD 52.6 million and held a market share of 36.3% in 2022. Bitcoin was the second in the segment with an overall value of USD 42 million, in the same year.

The global smart contracts market is projected to be dominated by North America as it has been in previous years. The regional growth is mainly driven by the US market where the adoption rate of smart contracts is higher which is propelled by the increased use of the technology in the healthcare and logistics sector. Even governments have been investing heavily to adopt smart contracts in various forms. The region may generate high revenues because of the strategic decisions undertaken by market players to enhance their global footprint.

Europe and Asia-Pacific are also showing signs of considerable growth owing to the increase in applications of smart contracts across industries. Growth in Asia-Pacific is related to the growing population becoming aware of smart contracts thus resulting in a higher awareness rate.

This review is based on a report by Zion Market Research, titled “Smart Contracts Market By End-user Industry (Healthcare, Banking & Insurance, Transportation/Logistics, Automotive, Government, Sports & Entertainment), By Technology (Ripple, Namecoin, and Ethereum), By Platform (Sidechains, Ethereum, Bitcoin, and NXT), and By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2023 – 2030.”- Report at https://www.zionmarketresearch.com/report/smart-contracts-market

Recent Developments:

• In May 2022, VanEck, a global asset manager, announced the launch of a new Entity Network Translation (ETN) for the European market. With this launch, the company aims to celebrate the growth in the smart contracts investment lineup as it focuses on leading the smart contracts digital asset. The new will provide bundles and simple investments in five of the leading smart contracts applications like Solana, TRON, Polkadot, Cardona, and Ethereum
• In February 2022, Hedera announced the mainnet launch of smart contracts 2.0 that are compatible with Ethereum Virtual Machine (EVM). The product will equip EVM and Solidity compatible smart contracts with Hedera's extremely versatile tokenization system creating flexibility for users, and benefits for developers.

 The global smart contracts market is dominated by players like:

• Oracle
• IBM
• Waves
• GoCoin
• AWS
• Algorand
• Tata Consultancy Services
• Stratis
• Monax Industries
• Solana
• Infosys
• Avalanche
• RSK
• Nem
• Chainlink

The global smart contracts market is segmented as follows:

By End-User Industry

• Healthcare
• Banking & Insurance
• Transportation/Logistics
• Automotive
• Government
• Sports & Entertainment

By Technology

• Ripple
• Namecoin
• Ethereum

By Platform

• Sidechains
• Ethereum
• Bitcoin
• NXT

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

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