The global blockchain distributed ledger market accounted for $228 million in 2016, and between 2017 and 2023 is expected to reach $5.43 billion, expanding at a compound annual growth rate of 57.6 percent.
This is according to Blockchain Distributed Ledger Market by Type and End User: Global Opportunity Analysis and Industry Forecast, 2017–2023,a new report published by Portland, Oregon-based Allied Market Research.
In 2016, North America dominated the global market in terms of revenue, accounting for more than 40 percent of the global market, followed by Europe.
Negligible fees for transactions in blockchain distributed ledger applications, elimination of third parties in business deals, and a reduced chance of fraud and identity theft will be key drivers for growth, according to the report.
In addition, increased public awareness of distributed ledger and blockchain technology is expected to provide lucrative opportunities for market players.
Private blockchain currently is the leading segment in the global market, and is expected to remain so throughout the forecast period. However, the public blockchain segment is expected to experience significant growth as public blockchain is used in web-based control panels, the report says.
The banking, financial services and insurance sector is expected to maintain its lead in the end-user segment, with CAGR of 53.9 percent through the forecast period.
North America is expected to maintain its dominance throughout the forecast period, owing to the presence of key companies in the region, however Asia-Pacific is projected to grow at the highest CAGR, due to increasing internet transitions and a rise in adoption of advanced technologies.
"The blockchain distributed ledger market is in its early stage of growth," Himal Srivastava, Allied Market Research Analyst for Semiconductor and Electronics, said in the release.
"Blockchain-based solutions are projected to be adopted earlier in some industries such as financial services and the supply chain industry as compared to many other industries. The blockchain technology addresses security in areas including insurance, law and data security by validation of the information in the blockchain ledger. Exponential increase in data is expected to facilitate more R&D activities leading to increased competition in the market."