June 11, 2020

Blockchain In BFSI Market Revenue And Value Chain 2019-2026

According to a recent report published by Allied Market Research, titled, “Blockchain in BFSI Market by Component, Application, Organization Size, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2018–2026,” the global blockchain in BFSI market size was valued at $277.1 million in 2018 and is projected to reach $22.46 billion by 2026, growing at a CAGR of 73.8% from 2019 to 2026.

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Blockchain as a digital technology has progressed a lot in the recent years, due to which financial sector is experiencing the major transformation globally. Moreover, online payments, card-based payment methods, and credit & debit cards have become dominant and gained huge traction in the recent past. And, blockchain is expected to support all these changes by enabling increased speed of transaction and real-time processing. Moreover, cryptocurrencies are gradually becoming popular and distributed ledgers support the payment system for these currencies. Moreover, blockchain based business model in payments for financial players and mobile banking could provide major blockchain in BFSI market opportunities due to growing penetration of smartphones in countries such as China, Japan, and India. Such factors are expected to fuel the major growth for blockchain in BFSI market in forthcoming years.

Blockchain offers a potential environment for protected data sharing in real-time. In addition, it is progressively being tested and used across majority of banks and other giant financial institutions such Goldman Sachs, JP Morgan Chase, and others. Moreover, its cryptographic security allows people in the blockchain network to co-operate among each other in frictionless manner and without the need of any intermediary.

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Based on component, the platform segment is expected to garner major blockchain in BFSI market revenue in 2018 and is expected to remain dominant during the forecast period. The growth of this segment is mainly attributed to the growth in adoption of blockchain software and cloud computing across the enterprises. On the contrary, the services segment is expected to exhibit the highest growth throughout the forecast period owing to increase in demand for cloud services.

North America dominated the overall blockchain in BFSI market in 2018 and is expected to remain dominant during the forecast period due to presence of major market players and on-going developments in blockchain technology in this region. Furthermore, Asia-Pacific is expected to exhibit highest growth rate throughout the forecast period.

According to Bhushan Jagtap, Research Analyst, ICT at Allied Market Research, “According to the blockchain in BFSI market analysis in Asia-Pacific, the market is projected to generate the highest growth rate during the forecast period, owing to increase in investment in Fintech and startups that are developing and testing blockchain solutions.”

KEY FINDINGS of THE STUDY
• Based on application, the smart contracts segment dominated the overall market in 2018 and is expected to generate highest revenue during the forecast period. The growth of this segment is mainly attributed to increase in need for self-executing contracts across banks.
• In terms of end user, the banking segment generated the highest revenue for blockchain in BFSI market share in 2018 and is expected to dominate throughout the forecast period. Increase in need to streamline the banking processes with distributed ledger technology is the major factor that fuels the growth of this segment.
• On the basis of organization size, the large enterprises segment dominated the overall blockchain in BFSI market in 2018 and it is expected to remain dominant throughout the forecast period.
• On the contrary, small & medium size enterprise segment is expected to exhibit highest growth throughout the forecast period. The growth in investment by start-ups to develop blockchain-based solutions is the key factor boosting the blockchain in BFSI market growth of this segment.

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Some of the key blockchain in BFSI industry players profiled in the report include Alphapoint, Auxesis Group, Amazon Web Services, Inc. (AWS), Bitfury Group Limited., Hewlett Packard Enterprise Development LP (HPE), International Business Machines Corporation (IBM), Infosys Limited, Microsoft Corporation, Oracle Corporation, and SAP SE.