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Blockchain technology market on the rise: Can it surpass $16 billion in the next five years?

According to a recent report, published by a market research company known as Global Market Insights, Inc., the global blockchain technology market might surpass $16 billion in the next five years.

The report has 180 pages, and is titled “Blockchain Technology Market By Providers (Infrastructure Provider, Application Provider, Operators), Application (Smart Contract, Payment & Wallet, Digital Identity, Exchange, Compliance & Risk Management), End-Use (BFSI, Government, Healthcare, IT Service, Media & Entertainment, Transportation & Logistics), Regional Outlook, Competitive Market Share & Forecast 2024.” It points out that the main contribution to the global market growth of blockchain technology comes from the ever-increasing adoption of this technology — primarily when it comes to financial firms.

The report claims that financial organizations are likely to shift towards blockchain technology because of its capabilities, such as increased efficiency of internal processes. The same boost in efficiency is also followed by the reduced operational cost, particularly when it comes to trade finance, KYC checks, and documentation.

As part of their research, the report authors also gathered insight into a stakeholder segmentation of the blockchain market. The results indicate that the CAGR (compound annual growth rate) of around 85% is expected for application providers in the years between 2018 and 2024. Meanwhile, digital identity application is expected to register a CAGR of around 90% during this period. Researchers expect that the digital identity application will be seen as a functioning method of resisting cyberattacks, which will be its driving factor.

After that, the report also touched upon the government segment of the market involving blockchain technology. According to the analysis, this segment is also likely going to see an 85%-large CAGR growth. The same is true for the market share regarding blockchain’s applications in the healthcare industry. In other words, all of the driving segments and applications will grow exponentially by 2024, which will contribute to the growth of global blockchain market value.

Other predictions agree: Blockchain market revenues will keep going up

Global Market Insight seems to be particularly interested in the use of blockchain technology in the healthcare market since they released a report that explores this topic deeper, earlier this month. The report has concluded that blockchain technology in healthcare might exceed $1.6 billion by 2025, indicating that this market alone will come to depend on the blockchain technology quite a bit.

Blockchain adoption in healthcare is expected to be positively impacted by a number of factors, including interoperability of health data, the cost component reductions, as well as by examination of medical outcomes.

Another report from late August of this year also explores the global revenues of blockchain technology. This report was published by ABI Research — a tech market advisory company. Their own assessment states that the global blockchain revenues are likely to reach as much as $10 billion by 2023, which is even sooner than what Global Market Insights has predicted.

These predictions certainly indicate that the future of blockchain technology is quite bright, and that a number of industries and sectors will come to rely on it quite a bit. Time will tell whether these reports are overestimating or underestimating the blockchain, but according to the current data — these are the most accurate predictions that can be made at this point.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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