The global blockchain technology market is projected to grow from $210.2 million in 2016 to $2.3 billion by 2021, led by infrastructure and protocols provider segment while media and entertainment vertical to have the highest growth rate during the forecast period. This amounts to a compound annual growth rate (CAGR) of 61.5 per cent.
Blockchain is a data structure enabling a digital ledger of transactions to be kept and updated, with the information stored across a network of computers, much like BitTorrent. This enables triple-entry bookkeeping, with changes to the record of transactions requiring consensus within the distributed network.
According to a report by Markets and Markets, the countries which are showing particular growth in cryptocurrency and blockchain technology startups in the Asia Pacific (APAC) includes emerging economies, such as India, China, Australia, and Singapore, driven mainly by the digitisation of businesses in the small and medium enterprise (SME) segment, as well as large local enterprises (LLEs) with a regional footprints and MNCs.
As such, the APAC if expected to witness the highest growth rate in the blockchain technology market. The blockchain technology market is growing rapidly as the organisations are more focused on developing mechanisms for transparency & immutability, as well as scalability.
However, factors such as lack of awareness about the blockchain technology and uncertain regulatory status are the major restraints in the overall growth of the market.
The infrastructure and protocols provider segment is estimated to have the largest market size in 2016 due to increasing need for services such as mining, public, and special protocols.
Furthermore, the application and solution provider segment will grow at the highest CAGR during the forecast period, due to demand for efficient business processing applications.
The blockchain technology solutions have been deployed across various industry verticals, including banking, financial services, and insurance (BFSI), government & public sector, healthcare & life sciences, retail & ecommerce, automotive, media & entertainment, and others.
The media and entertainment vertical is expected to witness the highest CAGR during the forecast period as the industry has been transformed with digital technology to solve various problems such as problem of copyrights by assigning rights, usage tracking, and distribution of all the content creators and owners using blockchain technology.