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Research: Market of Blockchain-as-a-Service is Growing Rapidly to Reach $30.59 Billion
According to the report, global blockchain-as-a-service market was valued at around USD 0.41 billion in 2017 and is expected to reach approximately USD 30.59 billion by 2024, at a CAGR of 85.09% between 2018 and 2024.
As the name implies blockchain is a technology used to store data in the form of blocks, each block is connected with every other block forming a chain. Blockchain-as-a-service (BaaS) refers to the cloud-based services and solutions offered by big tech giants to users to develop their own applications based on blockchain.
Blockchain-as-a-service market is expected to grow significantly, owing to its increasing applications in the commerce sector. International business transactions are getting more secure, fast, and reliable along with the BaaS model coming into the picture. As all the database is distributed and the trail of every transaction is available, blockchain-as-a-service is eliminating obstacles in international payment processes. Delay in verification and invoice processing, triggers the cost of business activities, this can be nullified or reduced by using blockchain technology. The technology provides a common chain of information visibility that will be shared across vendors and purchasers. Use of BaaS in international business transactions will curtail down the processing time and reduce costs by nearly 50 %.
Increasing implementation of blockchain-as-a-service in the supply chain is projected to drive the market growth in the near future. 15% increase in global trade is estimated in the future if blockchain-as-a-service model is used in eliminating the barriers in the international supply chain. For instance, IBM and Walmart have a collaborative solution that aims at uniting vegetable growers, processors, distributors, retailers, and other stakeholders to securely and efficiently track the product at every step of the supply chain. Owing to benefits such as increasing consumer and partner trust, offering improved inventory management, reduced paperwork, and eliminating fraud and errors in the supply chain, BaaS is anticipated to witness tremendous growth during the forecast period.
The media and entertainment industry is among one of the early adopters of blockchain solutions to provide efficiency and transparency to the consumers. Digital objects lose value as they can be easily copied and when it comes to media and entertainment, pirated movies, music, and other content can hamper the sectors overall productivity and revenue. Implementation of BaaS model in the industry will benefit the original creators to make it possible to set sharing permissions as well as automate royalty payments using smart contracts.
Features such as heavy use of cryptography and peer-to-peer distributed network architecture are some other advantages offered by BaaS model to be implemented in government, enterprises, and in various other verticals. The blockchain-as-a-service market is anticipated to surge in future, as the BaaS operator takes care of all the infrastructure and complex back-end tasks for the client and businesses. However, blockchain is a decentralized mechanism and involvement or addition of some centralization to BaaS model may act as a restraint for the market.
The blockchain-as-a-service market is segmented based on application, component, verticals, and region. Application segment is categorized into payment, smart contracts, supply chain management, governance, risk and compliance management, identity management, and others. Implementation of payments segment in international business transactions is projected to depict a substantial share in the global BaaS market. The component segment is further bifurcated into tools and services. The vertical segment is categorized into BFSI, IT & telecom, healthcare, government sector, retail, energy and utilities, manufacturing, logistics, media & entertainment, and others (travel and hospitality & real estate). Logistics segment is anticipated to witness a significant growth during forecast timeframe.
The regional segmentation includes the current and forecast demand for North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa with further countrywise segmentation into the U.S., Canada, Mexico, UK, France, Germany, Russia, China, Japan, India, South Korea, Australia, Brazil, Argentina, Saudi Arabia, UAE, and South Africa.
Major players operating in the global blockchain-as-a-service market are IBM, Microsoft, HPE, Ardor Nxt Group, SAP, AWS, Consensys, Deloitte, Infosys, Huawei, Accenture, and Oracle, among others. Launching new networks based on blockchain is among the primary strategies adopted by private companies. Amazon Web Services (AWS) introduced Kaleido, the Blockchain Business Cloud to support and simplify enterprise-ready blockchain networks for customers.
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