The Global Blockchain as a Service Market size is expected to reach $17.9 billion by 2027, rising at a market growth of 54.2% CAGR during the forecast period. Blockchain-as-a-Service (BaaS) refers to a managed blockchain platform. The vendors of this platform provide infrastructure and blockchain building tools that enable users to develop digital services and blockchain applications on a distributed network.
Earlier, blockchain applications were only used in cryptocurrencies but as their application development is continuously expanding, there is a surge in its demand as a hosting option. This platform is somewhat similar to software-as-a-service and allows business customers to design their own applications and run them smoothly with a smaller number of issues & problems. This leads to a significant increase in blockchain deployment and improved agility. Blockchain applications are gaining traction in the overall market but small and medium enterprises are facing challenges in setting up these applications as they have restricted IT resources. This platform also offers professional assistance along with hosting services.
Moreover, blockchain as a service is based on the Software as a Service model and also operates in a similar way. This platform enables customers to take maximum advantage of cloud-based solutions to develop, host, and run their own blockchain applications and associated functions on the blockchain. Simultaneously, the cloud-based service vendors support the infrastructure by keeping it operational and agile.
The outbreak of the COVID-19 pandemic had a negative impact on various industries across the world. Governments across the world imposed stringent regulations that restricted the movement. Additionally, nations are still trying to find ways to defeat the pandemic and reduce its impact on health, livelihoods, and businesses. Several industries also witnessed a slowdown in the manufacturing activities of the products. In addition, the supply chain of non-essential products was disrupted due to the different COVID-19 restrictions.
Various companies are operating in the music and healthcare sector that have started adopting blockchain technology. Blockchain technology in the music industry helps in sustaining a distributed database about the ownership of music rights. In addition, verification & authentication of all the documents for legal services can also be done by utilizing blockchain technology. Since the outbreak of the global Covid-19 pandemic, blockchain technology has recorded significant growth. It is because this technology plays an important role in making a platform for monitoring the Covid-19 pandemic.
Identity and security are the major and complex issues for the companies as well as government systems. Blockchain technology provides beneficial services for solving such issues. In addition, several blockchain-based identity platforms are used in unregulated nations or nations with poor identification systems. There are many governments that are using blockchain technology-based identification platforms at the national level to encourage security & transparency in transactions around all over the public and private sectors.
The blockchain technology market is increasing at a fast pace due to its multi-tasking capabilities over numerous applications. Huge venture capital funds & high investments are needed to establish a specialized infrastructure & architecture. Though, this starting process and operability are more complicated and need more experienced resources. This process also takes vast bandwidth, cooling system, energy, network components, data centers, and others. However, SMEs do not have enough budget to invest in the adoption of Baas solutions, which is hampering the market growth.
Based on Component, the market is segmented into Tools and Services. The tools segment is anticipated to acquire the largest market share of the blockchain as a service market over the forecasting years. These tools provide a number of advantages to companies of all sizes and hence increasing the adoption of blockchain as a service tool. BaaS tools provide its customers the potential to build their own blockchain applications & solutions and allow them to set up a consortium, public, and private-based blockchain environments.
Based on Application, the market is segmented into Supply Chain Management, Payments, Identity Management, Smart Contracts, Governance, Risk, & Compliance Management and Others. Smart contracts cut down the chances of occurrence of risks by verifying, storing, and implementing contractual rules using blockchain technology that decentralizes the accountability and liability of the contracts. Further, these contracts enable included parties to access and monitor implemented contracts that terminate the chances of data loss & fraud and decrease the operational cost & time, which leads to an increase in the dependability on the system.
Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprises. SMEs segment would display a promising growth rate in the blockchain as a service market during the forecasting years. In comparison to on-premises networking solutions, cloud-based solutions are more flexible and cost-effective due to which, SMEs are shifting to cloud-based solutions. Additionally, a significant surge is witnessed in the deployment of BaaS solutions as they can flexibly manage the IT infrastructure according to the need of SMEs. Moreover, BaaS solutions help SMEs in making quick decisions and responding in real-time to stay competitive in the market and also keep the customer data secured along with reducing the operating cost.
Based on End User, the market is segmented into BFSI, Retail & eCommerce, Manufacturing, Healthcare, Government, Energy & Utilities, and Others. Factors such as the growing adoption of cross-border payments, increasing investment by banks in blockchain-based solutions, digital ledger & consortium blockchain, and rising demand for transparency & liability of transactions via GRC management tools would create new growth opportunities for the BaaS market in the BFSI sector. Moreover, minimized processing costs, increasing demand for improved smart contracts, scalability, transaction speed, and the growing demand from emerging nations for BaaS solutions are anticipated to drive the growth of the blockchain as a service market in the BFSI sector during the forecasting period.
| Report Attribute | Details |
|---|---|
| Market size value in 2020 | USD 885.1 Million |
| Market size forecast in 2027 | USD 17.9 Billion |
| Base Year | 2020 |
| Historical Period | 2017 to 2019 |
| Forecast Period | 2021 to 2027 |
| Revenue Growth Rate | CAGR of 54.2% from 2021 to 2027 |
| Number of Pages | 334 |
| Number of Tables | 494 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Component, Application, Enterprise Size, End User, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. North America is expected to emerge as the dominating region in the blockchain as a service market over the forecasting years. Several banks in the North American region like Bank of America, the Royal Bank of Canada, JPMorgan, and other financial service institutions are focusing on deploying blockchain technology and introducing full-scale commercial blockchain technology-based products.
Free Valuable Insights: Global Blockchain as a Service Market size to reach USD 17.9 Billion by 2027
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Oracle Corporation, Huawei Technologies Co., Ltd. and Amazon Web Services are the forerunners in the Blockchain as a Service Market. Companies such as Huawei Technologies Co., Ltd., SAP SE, Accenture plc are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include IBM Corporation, SAP SE, Amazon Web Services, Inc. (Amazon.com), R3, Oracle Corporation, Huawei Technologies Co., Ltd., Hewlett Packard Enterprise, Accenture plc, Wipro Ltd., and Infosys Limited.
By Component
By Application
By Enterprise Size
By End User
By Geography
The blockchain as a service market size is projected to reach USD 17.9 billion by 2027.
Increasing adoption of blockchain technology in the music and healthcare sector are driving the market in coming years, however, huge cost involved at Initial Stage Proving have limited the growth of the market.
IBM Corporation, SAP SE, Amazon Web Services, Inc. (Amazon.com), R3, Oracle Corporation, Huawei Technologies Co., Ltd., Hewlett Packard Enterprise, Accenture plc, Wipro Ltd., and Infosys Limited.
The expected CAGR of the blockchain as a service market is 54.2% from 2021 to 2027.
The smart contracts segment would display the highest growth rate of the blockchain as a service market over the forecast years.
The North America market dominated the Global Blockchain as a Service (BaaS) Market by Region 2020, as retailers in this region are highly adopting BaaS solutions to design constructive business applications.
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