The worldwide digital rush has prepared the stage for decentralized ledger technologies like blockchain. Market analysts are exploring the blockchain possibilities with SaaS models and have given birth to “Blockchain-as-a-service” models. The significant growth of internet penetration in several countries worldwide, the increase in a complicated financial sector around the globe, the rise in the number of cyber threats, and the extensive blockchain technology adoption in developing countries have led to the increase of the BaaS (Blockchain-as-a-service) market worldwide. During the global covid19 pandemic, the growing trend of cryptocurrencies, and blockchain technology has had a positive impact on the growing market.
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What is “Blockchain-as-a-service”?
Blockchain-as-a-service known as BaaS is the operation and implementation of cloud-based networks by intermediaries for companies that develop blockchain-based applications and products. These intermediate services are new to the developing blockchain technology market. While initially the technology was limited to the cryptocurrencies, and the BFSI sector, today the technology has evolved in different fields after revealing its true potential.
After the global covid19 pandemic, experts observed an increase in cyber threats which led organizations to utilize “blockchain technology” to protect their data, thus increasing the demand for “blockchain-as-a-service” solutions. With the global fintech industry growing more complex, it made a positive impact on the growth of the BaaS industry.
“Blockchain Market, to Reach $84.6 billion by 2031”: How?
According to a renowned tech research firm, the worldwide “blockchain-as-a-service” market achieved $829million in 2021. With a 59.3% growth rate, the market is expected to reach $84.6 billion from 2022 to 2031. The report shows an in-depth analysis of emerging market trends, winning strategies, value chains, market size, opportunities, drivers, major investment pockets, and regional and competitive fields. The BaaS market is segmented into Industry Verticals, Enterprise size, Applications, and Offerings.
- Based on the offering, the industry is divided into services and tools. In 2021, the tool segment had the dominating market share by having more than half of the global market share. The segment is also predicted to rule the sector even during the forecasting period. However, on the other hand, the services segment is expected to show a CAGR of 61.1% in the duration period.
- Based on the industry verticals, the BFSI industry was dominating the market share holding one-third of the global market in 2021. The sector is also expected to hold a similar position during the forecast period.
- Based on the enterprise size, the large companies were dominating three-fifths of the global market in 2021, which will keep maintaining the position in the market for the forecast period. The SME segment of the market is expected to grow the quickest with a CAGR of 61%.
- Based on the applications, the payment segment had the highest shareholding of one-fourth of the market in 2021. The e-commerce and retail sector is projected with the quickest CAGR of 63.3% during the period.
The report of the tech research firm consists of an analysis of every segment along with a sub-segment via graphs. The analysis report will help the startups, market players, and investors to develop and design strategies to choose the highest-generating revenues with the fastest developing sector.
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Region-Wise Domination of the BaaS Market
The current economic and digital transformation has made Asia-Pacific regions to be the ones to adopt Blockchain-as-a-service solutions at large.
In 2021, North America was dominating the BaaS market, and considering the several blockchain solutions and service providers in the country, it is likely to retain its position in the forecasted period as well. On the other hand, Asia-Pacific is also expected to observe significant growth during the period owing to the technological, and economic transformation of the region which is also expected to power the development of Blockchain-as-a-service solutions in the next few years.
The impact of the Covid-19 Pandemic
The covid19 pandemic has disrupted several sectors, however, has only fueled the use of blockchain technology.
- The covid19 pandemic had a positive effect on the growth of the blockchain-as-a-service market worldwide due to the lockdown situation in several countries.
- Since the lockdown led to an increase in the use of blockchain technology, the technology use was increased, boosting its growth in the market.
- The popularity and growth in the adoption of non-fungible tokens (NFTs) and cryptocurrency along with the popularity of metaverse and virtual marketplaces have impacted the market growth.
Several players in the worldwide BaaS market utilize effective strategies such as collaborations, partnerships, joint ventures, new product launches, and others to power their stand in the industry.