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A report on the expected growth of the blockchain market by Meticulous Research has produced incredibly bullish forecasts for the industry. By 2025, a compound annual growth rate (CAGR) of 74.1% is expected to reach $ 28 billion.
Future looks bright for Blockchain technology
In a report released today, Meticulous Research stated that the size of the global blockchain market will reach an impressive $ 28 billion by 2025.
For us more used to dealing with cryptocurrency market capitalizations, this may seem a sharp decline. However, the figures do not include the individual market ceilings for cryptocurrencies. To put it in perspective, the current size of the technology market is declared by Meticulous of $ 385.5 million.
Researchers believe that explosive growth will be driven by a variety of factors. These include: the increase in Blockchain-as-a-Service (BaaS) adoption rates, the increased acceptance by cryptocurrency merchants and increased interest from traditional financial interests.
The report states that the banking and finance sector currently represents the largest share of the total market. Payments are cited as the greatest form of application of technology. It is expected that the finance-focused blockchain sector will grow to a 70% CAGR by 2025. A meticulous speculation as to why this area is emerging as the biggest use of technology:
"The growing need to transfer funds directly and securely to anyone and the growing demand to reduce transaction costs fosters the adoption of blockchain in this application area."
BaaS is cited as a way to bridge the current gap between technical skills in building and programming blockchain and the effective use of technology in business applications. BaaS allows customers to create their own distributed general accounting technology apps using a cloud-based service provider.
Related reading: Ethalium Co-Founder Vitalik: IBM Blockchain is "Missing The Point"
They manage all the most complex back-end processes and allow programmers to continue developing their applications. With the successful launch of blockchain-based applications on the market, the demand for skills to codify on public blockchain platforms such as Ethereum increases. This, in turn, helps the industry grow.
Furthermore, the increase in the adoption of cryptocurrency in retail sales further strengthens the technology market. The report mentions companies like Expedia, PayPal, Subway, Shopify and Microsoft as examples of large companies that have accepted digital currencies for payments. Meticulous continues to speculate that current levels of hype on blockhain technology only encourage others to follow the pattern in the coming years.
Finally, the report states that North America is currently home to most of the technology companies in the blockchain market. However, the Asia-Pacific region is indicated as the area that is expected to increase more by 2025. Among the reasons cited is the speed with which nations such as Korea and Japan are adopting the cryptocurrency and the technology in areas such as finance and supply chains.
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