The blockchain market is expected to advance at a CAGR of 34.1% throughout the forecast period, from US$ 8.3 billion in 2022 to US$ 155 billion in 2032.
As per the global blockchain market study, the demand for cryptographic ledger solutions to increase due to increased identity and data theft activities. To protect end-user financial data and identity, BFSI firms are turning to digital ledger technologies.
Cross-border transactions, processing and settlements, trade finance networks, digital identity verification and credit reporting are among the technology applications gaining traction in the BFSI market. This is projected to help the blockchain market expand.
The blockchain market growth will be hampered by a scarcity of skilled professionals. Threats and cyberattacks have escalated as industries have embraced digital change. Organisations, on the other hand, face a scarcity of competent experts to deal with risk issues.
As a result, technologically advanced solutions are being adopted slowly, which is expected to have an impact on blockchain market growth in the coming years.
Furthermore, developing countries, such as India, Peru and Mexico, among others, face a lack of awareness regarding data security risks. As a result, blockchain market adoption trends are expected to remain flat for a few years.
The legalisation of bitcoin stimulates further investment in blockchain technology by businesses and investors. It also pushes the blockchain market players to put in more effort to enhance their services in order to obtain a competitive advantage.
In the near future, these efforts by firms are likely to make blockchain technology more effective and efficient. DeFi is a new financial technology based on blockchain that allows banks to have less influence over financial services and money. Over the forecast period, the blockchain market growth is expected to be driven by expanding strategic initiatives in the decentralised financial domain.
Blockchain technology has the potential to disrupt and revolutionise transactions, but to reap the benefits, businesses must overcome key confidentiality, privacy and control challenges. Because blockchain records are kept in a distributed public ledger, hackers can take advantage of a larger attack surface to get access to critical and sensitive data.
If a blockchain solution is used to hold a sensitive contract or payment data, copying the file could provide hackers with more access. The lack of adoption of cryptographic solutions is mostly due to the privacy issue with blockchain solutions.