Blockchain

Blockchain as a Service Market Size, Share and Global Market Forecast to 2026 | MarketsandMarkets

[271 Pages Report] The post-COVID 19 global Blockchain as a service market size is expected to grow from USD 632 million in 2020 to USD 11,519 million by 2026, at a Compound Annual Growth Rate (CAGR) of 62.2% during the forecast period.

The major factors fueling the blockchain as a service market include increasing demand for blockchain as a service due to COVID-19 outbreak, growing need for supply chain transparency across verticals and need to reduce risk and complexities and increase in the efficiency of blockchain solutions. Moreover, Blockchain and the Internet of Things and rising government initiatives would provide lucrative opportunities for Blockchain as a service vendors.

Blockchain as a Service Market

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COVID 19 Impact

To ensure healthcare industry privacy post the outbreak of COVID-19, blockchain is expected to provide a number of security features, including decentralization, encryption, and cryptography. The COVID-19 pandemic has resulted in an increased demand for eCommerce. To successfully operate in pandemic technologies, such as AI, ML, and Blockchain are beginning to drive innovation strategies of the business which has further fueled the increase in the adoption of blockchain as a service solutions across SMEs. The adoption of fintech and blockchain technology, is enabling enterprises to streamline as well as modernize their operations after the outbreakm of COVID-19 pandemic. This may lead to firm growth in contactless transactions and redesigned financial services. Blockchain is expected to be a boon to the pharmaceutical industry. The technology is seen as a solution to the logistical challenges of delivering a COVID-19 vaccine. Blockchain is being used for proper distribution of COVID-19 vaccine to keep a proper track of maintenance as well as storage of vaccine for distribution.

Market Dynamics

Driver: Increasing demand for Blockchain as a Service due to COVID-19 outbreak

The COVID-19 emergency has caused significant interruptions across worldwide supply chains. Two factor plays a major role: numerous factories shut down due to safety and hygiene concerns, and the unparalleled demand for specific products, such as PPE kits and medical supplies. Various users are feeling pressured to secure supplies from unknown origins or quality due to the increased demand for these products. Lengthy supply chains cause excessive obscurity, making it hard to calculate and plan the entire supply process. Blockchain is the best option for supply chains as it can connect all stakeholders into one supply chain network universal source while maintaining transparency and being able to securely break down data silos. Therefore, huge numbers of blockchain arrangements exist in the supply chain process, which accelerated during the COVID-19 pandemic. Blockchain accelerates the validation procedure by expelling third-party delegates and innate delays in handling and processing operations. The advantages include quicker handling and processing time, reduced costs, lower operational risks, and faster settlements for all parties included.

Restraint:Uncertain regulatory status and standards

Regulations may hinder the adoption of the blockchain as a service technology across various regions. Governments are establishing various regulations to avoid fraudulent cross-border transactions. For instance, in February 2018, Japan formed a legislation to regulate bitcoin across the country, similarly, in the recent past, India has banned the cryptocurrency’s trade. Moreover, various countries are investing in research to get acquainted with blockchain and its usage. Some areas of blockchain implementation are highly contingent upon supportive regulations, including property records, legal contracts, and disintermediation of financial institutions. According to the BigBreak101, organizations can use Know Your Customer (KYC) to comply with the regulatory norms. Moreover, the blockchain as a service technology does not have clarity over regulatory compliances; hence, organizations are more careful while making international transactions through blockchain.

Opportunity: Blockchain and the Internet of Things

Blockchain technology can provide a secure and scalable framework for communication between IoT devices. While modern security protocols already appeared to be vulnerable when implemented to IoT devices, blockchain has already approved its high resistance to cyberattacks. Besides, the technology allows smart devices to make automated micro-transactions. Due to its distributed nature, blockchain will conduct transactions faster and cheaper. To enable the transfer of money or data, IoT devices leverage smart contracts, which will be considered as the agreement between the two parties.

Challenge: Lack of the technical knowledge

Blockchain technology is currently one of the hottest and most intriguing technologies in the blockchain as a service market. However, end users are still facing some challenges about the technical understanding of the blockchain technology and its concept, as it is in a nascent stage. Platforms for training and maintaining knowledge in the blockchain field would become a necessity, as the adoption and use cases of blockchain technology are expected to increase in the next few years. Blockchain technology uses cryptographic algorithms that run across a vast network of independent computers. Hence, knowledge of the related techniques is required to leverage the blockchain technology applications.

SMEs segment to grow at a higher CAGR during the forecast period

Rather than investing in on-premises networking solutions, SMEs prefer cloud-based solutions, which are more flexible and fall within the budget. The adoption of the pay-as-you-go model by SMEs to flexibly manage the IT infrastructure as per their requirements is projected to drive the adoption of blockchain as a service. Also, the need for efficient customer data protection and cost-cutting, as well as attaining a competitive advantage, enables quick response and timely decisions that are projected to drive the growth of the blockchain as a service market in SMEs. Also, factors such as the need for efficient customer data protection, cost-cutting, getting a competitive advantage, and quick response and timely decisions are projected to drive the growth of the blockchain as a service market in SMEs.

BFSI vertical to hold the largest market size during the forecast period

The increased need for transparency and accountability of transactions through GRC management tools, increased adoption of cross-border payments, digital ledger and consortium blockchain, and increased investment by banks in blockchain-based solutions drive the growth of the global blockchain in the BFSI industry. In addition, the increased demand from developing economies and high demand for increased scalability, transaction speed, smart contracts, and reduced processing costs are expected to create a number of opportunities in the blockchain in the BFSI industry in the near future.

Blockchain as a Service Market by Region

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North America to hold the largest market size during the forecast period

Most of the companies in North America across BFSI, retail, healthcare, and manufacturing end users have started implementing blockchain technology across their businesses. Blockchain is already witnessing its use cases outside of the cryptocurrency end user and has been successfully used for food safety, voting, and shipping. The Federal Government of Canada is exploring blockchain technology to boost innovations in the economy, resulting in the creation of ample opportunities for blockchain as a service vendors and driving the blockchain as a service market. Increasing adoption of blockchain technology among various SMEs as well as big industries in order to streamline processes in fields such as medical data, supply chain, and administration is also expected to drive the demand for blockchain as a service in the region. The increasing adoption of blockchain among software development companies for building apps on it is also expected to fuel the demand for blockchain as a service. With the technological advancement and the rising focus on making supply chain functions, such as logistics, warehousing, fulfillment, production, and transportation management more efficient, the need for a blockchain as a service is being fueled in the region.

Asia Pacific to grow at the highest CAGR during the forecast period

In APAC region, presently, the blockchain as a service market is in the nascent phase of exploration and adoption. However, most of the technology and services providers are looking forward to the blockchain as a service technology as a lucrative opportunity. Moreover, growth in the financial sector is expected to complement the adoption of blockchain as a service tools and services. APAC countries are showing growth in cryptocurrency and blockchain technology startups. The region is analyzing the potential of blockchain technology to explore new opportunities and possible challenges to overcome. Supply chains in APAC are often significantly more difficult to manage as compared to other regions of the world. To reduce these complexities, the adoption of blockchain as a service in the region is increasing. With the rising penetration of the internet and smartphones, eCommerce became a strong driving force for APAC in 2020, which is further necessitating the demand for effective blockchain as a service tools and services in the region for optimizing as well as cost-effectively managing the supply chain. This is also fueling the need for blockchain as a service solutions and services in the region. Hence, the region is expected to grow at the highest CAGR during the forecast period.

Key Market Players

Major vendors in the global blockchain as a service market include IBM (US), SAP SE (Germany), Oracle (US), R3 (US), and Microsoft (US).

Oracle is one of the leading providers of a wide array of technologies. The company operates in three business areas: cloud and license, hardware, and services. It offers middleware software, Oracle databases, cloud infrastructure, application software, and hardware systems, including networking products, computer servers, and storage-related services. It has a broad portfolio of SCM applications that enable organizations to improve outcomes for operational efficiency, while ensuring cost savings. Oracle offers a comprehensive and broad portfolio of cloud solutions for business functions, such as enterprise resource planning, human capital management, customer experience, and SCM. The Oracle SCM offerings enable organizations to efficiently organize and improve their supply chains. These offerings include Oracle product lifecycle management cloud, Oracle supply chain planning cloud, Oracle inventory management cloud, Oracle order management cloud, Oracle order manufacturing cloud, and Oracle logistics cloud. Oracle’s geographic operations are spread across Europe, the MEA, APAC, North America, and South America. Some of its notable subsidiaries include Oracle International Corporation (US), Oracle Global Holdings, Inc. (US), Oracle America, Inc. (US), Oracle Technology Company (Ireland), Oracle Systems Corporation (US), and OCAPAC Holding Company (Ireland).

Scope of the Report

Report Metrics

Details

Market size available for years

2016-2026

Base year considered

2019

Forecast period

2020-2026

Forecast units

Value (USD)

Segments covered

Offering (tools and Services), application, organization size, end user, and Region

Geographies covered

North America, Europe, APAC, MEA, and Latin America

Companies covered

IBM (US), Microsoft (US), SAP (Germany), AWS (US), Oracle (US), Huawei (China), R3 (US), HPE (US), Accenture (Dublin), Wipro (India), Infosys (India), Bitfury (The Netherlands), Factom (US), LeewayHertz (US), Altoros (US), VeChain (China), Salesforce (US), OpenXcell (US), Oodles Technologies (India),and Blocko (South Korea).

This research report categorizes the blockchain as a service market to forecast revenues and analyze trends in each of the following subsegments:

Based on Offering:

  • Tools
  • Services

Based on Application:

  • Supply Chain Management
  • Smart Contracts
  • Identity Management
  • Payments
  • Governance, Risk, and Compliance Management
  • Others (Trade Finance and Data Storage)

Based on Organization Size:

  • SMEs
  • Large enterprises

Based on Verticals:

  • BFSI
  • FMCG
  • Healthcare
  • Manufacturing
  • Retail and eCommerce
  • Transportation and Logistics
  • Government and Public Sector
  • Energy and Utilities
  • Media and Entertainment
  • Others (telecom and IT, hospitality, real estate, and agriculture)

Based on Region:

  • North America
    • United States (US)
    • Canada
  • Europe
    • United Kingdom (UK)
    • Germany
    • Rest of Europe
  • APAC
    • China
    • Japan
    • India
    • Rest of APAC
  • MEA
    • Middle East
    • Africa
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America

Recent Developments

  1. In June 2019, MIMOS collaborated with Oracle to leverage blockchain technology for greater transparency and trust.
  2. In October 2018, Oracle Blockchain Applications Cloud was launched to help customers increase trust and provide agility in transactions across their business networks.
  3. In September 2018, in order to fight the growing problem of counterfeit drugs in India, NITI Aayog and Oracle signed a Statement of Intent (SoI) to pilot a real drug supply-chain using blockchain distributed ledger and IoT software.

Frequently Asked Questions (FAQ):

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