Blockchain In Infrastructure Market Overview
As per MRFR analysis, the blockchain in infrastructure market size was estimated at 10.83 (USD Billion) in 2022. The blockchain in infrastructure market industry is expected to grow from 13.66 (USD Billion) in 2023 to 110.24 (USD Billion) by 2032. The blockchain in infrastructure market CAGR (growth rate) is expected to be around 26.11% during the forecast period (2024-2032).
Key Blockchain In Infrastructure Market Trends Highlighted
The Blockchain in Infrastructure Market is rapidly evolving due to the ascendancy of digital transformation initiatives. Key market drivers include the need for enhanced security, improved data management, and increased efficiency in infrastructure operations. Opportunities lie in exploring blockchain's potential for streamlining supply chain management, optimizing energy distribution, and enhancing disaster recovery capabilities.
Trends in recent times indicate a surge in the adoption of blockchain-as-a-service (BaaS) solutions, the integration of blockchain with artificial intelligence (AI), and the development of industry-specific blockchain applications. The market's growth trajectory is expected to continue, driven by government regulations favoring blockchain adoption and the increasing awareness of its benefits among infrastructure providers.
Figure1: Blockchain in Infrastructure Market, 2018 - 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Blockchain In Infrastructure Market Drivers
Rising Demand for Enhanced Security and Efficiency
Growth in the adoption of blockchain technology across infrastructure is propelled by the need to enhance security and improve efficiency in the management of critical infrastructure systems. The use of blockchain in infrastructure is premised on its inherent features which are highly secure and tamperproof, such as the decentralized and immutable nature of the blockchain infrastructure.
Service providers in infrastructure can leverage blockchain technology to establish secure records of all the data and information regarding the infrastructure asset, including all transactions, contracts, and other records. By integrating blockchain, infrastructure assets also benefit from blockchain automation and can enhance efficiency by cutting costs of employing personnel and reducing the risk of errors from manual processing.
Government Initiatives and Regulations
Governments, ly, have understood that blockchain is the technology that can transform infrastructure development and management and have already launched numerous policies, regulations, and financing-led initiatives to support the market and encourage greater adoption of blockchain technology in construction and infrastructure development.
These initiatives are intended to promote innovation and create an investment-friendly environment by standardizing rules that regulate blockchain use. At the same time, these initiatives support responsible and ethical use of blockchain technologies. The government’s role in promoting clear regulatory standards and fostering greater collaboration between various stakeholders cannot be underestimated.
Advancements in Blockchain Technology and Interoperability
Market growth is driven by continuous advancements in blockchain technology and the development of interoperable solutions. The increase in research and development encouraging the scalability, security, and functionality of the platforms is furthering the market expansion. Blockchain is being integrated with other emerging technologies like artificial intelligence and Internet of Things, thus creating innovation opportunities.
The further development of interoperable blockchain solutions aims at enabling communication and data sharing between different networks and with the widely recognized legacy systems. This ensures that such technological advancement enhances collaboration and enlarges the benefits of the blockchain across the blockchain in infrastructure market.
Blockchain in Infrastructure Market Segment Insights
Blockchain in Infrastructure Market Deployment Model Insights
The blockchain in infrastructure market is segmented by deployment model into public cloud, private cloud, hybrid cloud, and on-premise. Among these, the public cloud segment is likely to hold the largest market share in 2023 and is expected to continue to dominate the market during the forecast period.
The growth of the public cloud segment can be attributed to the increasing adoption of cloud-based services by enterprises, and the advantages of public cloud such as scalability, cost-effectiveness, and flexibility. The private cloud segment is anticipated to register significant growth throughout the forecast period, on account of the rising need for data security and privacy.
Private cloud provides a more secure environment for blockchain applications as it is not accessible to the public internet. The hybrid cloud segment is likely to grow at a moderate pace over the forecast period, as enterprises aim to leverage the advantages of both public and private clouds.
Hybrid cloud enables companies to run their blockchain applications on both public and private clouds, depending on their requirements. The on-premise segment is expected to decline during the forecast period, due to the increasing adoption of cloud services. However, on-premise deployment may still be preferred by enterprises that have stringent security and compliance needs.
Figure2: Blockchain in Infrastructure Market, By Deployment Model, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Blockchain in Infrastructure Market Infrastructure Layer Insights
The infrastructure layer segment of the blockchain in infrastructure market is projected to witness significant growth over the coming years, driven by the increasing adoption of blockchain technology in various industries. The market for this segment is expected to reach USD 29.41 billion by 2026, expanding at a CAGR of 30.6% from 2024 to 2032.
Blockchain platforms provide the foundation for developing and deploying blockchain applications. They offer a secure and transparent environment for managing and recording transactions, making them ideal for applications in supply chain management, healthcare, and financial services.
The growth of the blockchain platforms market is attributed to the increasing demand for secure and efficient ways to manage data and transactions. Smart contracts are self-executing contracts that are stored on the blockchain. They automate the execution of agreements and eliminate the need for intermediaries, reducing costs and delays.
The market for smart contracts is expected to grow rapidly in the coming years, driven by the increasing adoption of blockchain technology in various industries. Distributed Ledger Technology (DLT) is a decentralized database that is shared across multiple nodes.
It offers a secure and transparent way to store and manage data, making it ideal for applications in healthcare, finance, and government. The growth of the DLT market is attributed to the increasing demand for secure and efficient ways to manage data.
Cryptocurrency is a digital or virtual currency that uses cryptography for security. It operates independently of a central bank and is not subject to government or financial institution control. The growth of the cryptocurrency market is attributed to the increasing adoption of blockchain technology and the growing popularity of digital currencies.
Blockchain in Infrastructure Market Application Insights
The application segment of the blockchain in infrastructure market is characterized by diverse industries adopting blockchain technology to enhance their operations. Supply chain management holds a significant market share, leveraging blockchain for improved transparency, traceability, and efficiency.
Finance is another key segment, utilizing blockchain for secure and streamlined transactions, reducing costs and risks. Healthcare embraces blockchain to enhance data privacy, interoperability, and precision medicine. Government agencies adopt blockchain for transparent and auditable record-keeping, promoting citizen trust.
Energy companies employ blockchain to optimize energy distribution, facilitate renewable energy integration, and enable peer-to-peer trading. Media and Entertainment leverage blockchain for content distribution, rights management, and digital identity verification, fostering trust and transparency in the industry. The blockchain in infrastructure market segmentation provides valuable insights into the adoption trends, growth potential, and competitive dynamics within each application segment.
Blockchain In Infrastructure Market Organization Size Insights
The blockchain in infrastructure market segmentation by organization size comprises Small and medium-sized enterprises (SMEs) and large enterprises. Large enterprises dominated the market with a revenue share of approximately 65% in 2023. This dominance is attributed to the higher adoption rate of advanced technologies, including blockchain, among large enterprises to streamline operations, enhance security, and improve efficiency.
However, the SME segment is projected to exhibit significant growth over the forecast period, owing to the increasing awareness of blockchain's benefits and the availability of cost-effective solutions tailored to their specific needs. The growing adoption of blockchain-as-a-service (BaaS) offerings is further fueling the market growth in this segment.
Blockchain In Infrastructure Market Insights
The blockchain in infrastructure market is segmented into various industries, including manufacturing, retail, transportation and logistics, healthcare, financial services, and government. Each industry presents unique opportunities and challenges for blockchain adoption. In the manufacturing sector, blockchain can enhance supply chain management, improve product traceability, and optimize production processes. The revenue in manufacturing is projected to reach USD 20.14 billion by 2024, exhibiting a CAGR of 31.5%.
In retail, blockchain can streamline operations, reduce costs, and enhance customer experiences. The retail segment is poised to witness significant growth, with a projected market size of USD 16.38 billion by 2024, expanding at a CAGR of 28.4%.
For transportation and logistics, blockchain can improve efficiency, reduce paperwork, and enhance visibility. The blockchain in infrastructure market size in this segment is anticipated to reach USD 12.76 billion by 2024, growing at a CAGR of 26.7%.
In healthcare, blockchain can secure patient data, streamline clinical trials, and improve drug traceability. The blockchain in infrastructure market statistics indicate that the healthcare segment is expected to reach a valuation of USD 10.34 billion by 2024, with a CAGR of 25.1%. Blockchain can bring transparency, security, and efficiency to financial services.
The market in financial services is projected to grow to USD 9.26 billion by 2024, exhibiting a CAGR of 24.3%. In government, blockchain can streamline public services, improve transparency, and enhance citizen engagement. The blockchain in infrastructure market growth in the government segment is expected to reach USD 8.95 billion by 2024, expanding at a CAGR of 23.8%.
Blockchain In Infrastructure Market Regional Insights
The blockchain in infrastructure market report presents a comprehensive study of the regional landscape of the market. North America held the largest market share in 2023 and is expected to continue its dominance throughout the forecast period.
The region's strong technology infrastructure, presence of major technology companies, and increasing adoption of blockchain solutions in various industries contribute to its market growth. Europe holds the second-largest share in the blockchain in infrastructure market, owing to the presence of numerous blockchain startups and favorable regulatory policies.
The Asia-Pacific (APAC) region is anticipated to experience significant growth during the forecast period due to the increasing demand for blockchain solutions in emerging economies such as China and India. South America and MEA are expected to witness a steady growth in the Blockchain In Infrastructure Market, driven by the growing awareness of blockchain technology and its potential applications.
Figure3: Blockchain in Infrastructure Market, By Regional, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Blockchain In Infrastructure Market Key Players and Competitive Insights:
Major players in the market are continuously focusing on research and development activities to develop innovative products and solutions. This is expected to drive the growth of the blockchain in infrastructure market. The market is also driven by the growing adoption of blockchain technology by various industries such as financial services, healthcare, and supply chain management. Leading players are also focusing on strategic partnerships and collaborations to expand their geographical reach and enhance their product portfolio.
Amazon Web Services (AWS) is one of the leading players. The company offers a range of blockchain-based services such as Amazon Managed Blockchain, Amazon Quantum Ledger Database (QLDB), and Amazon Aurora with PostgreSQL compatibility. AWS also has a dedicated team of blockchain experts who provide support and guidance to customers. The company's focus on innovation and customer service has helped it to become a leader in the Blockchain In Infrastructure Market.
Another player is Microsoft. The company offers a range of blockchain-based services such as Azure Blockchain Service, Azure Sphere, and Azure Digital Twins. Microsoft has also developed several blockchain-based solutions for specific industries such as financial services, healthcare, and supply chain management. The company's strong partnerships with leading technology companies have helped it to expand its reach and enhance its product portfolio.
Key Companies in the Blockchain in Infrastructure Market Include
-
Harmony
-
Polygon
-
Fantom
-
Avalanche
-
Algorand
-
Elrond
-
Filecoin
-
Helium
-
Cosmos
-
Polkadot
-
Tezos
-
NEAR Protocol
-
Cronos
-
Flow
Blockchain In Infrastructure Market Developments
The Blockchain in Infrastructure market is projected to reach a valuation of USD 110.24 billion by 2032, expanding at a CAGR of 26.11% from 2024 to 2032. The market growth is attributed to the rising adoption of blockchain technology for infrastructure management, increasing government initiatives to promote blockchain adoption, and growing demand for secure and transparent infrastructure solutions.
Recent developments include IBM's collaboration with the Bank of Thailand to explore blockchain for cross-border payments, and Huawei's partnership with China Telecom to develop blockchain-based smart city solutions. These advancements indicate the increasing integration of blockchain technology into infrastructure development.
Blockchain In Infrastructure Market Segmentation Insights
Blockchain In Infrastructure Market Deployment Model Outlook
- Public Cloud
- Private Cloud
- Hybrid Cloud
- On-Premise
Blockchain In Infrastructure Market Infrastructure Layer Outlook
- Blockchain Platforms
- Smart Contracts
- Distributed Ledger Technology (DLT)
- Cryptocurrency
Blockchain In Infrastructure Market Application Outlook
- Supply Chain Management
- Finance
- Healthcare
- Government
- Energy
- Media and Entertainment
Blockchain In Infrastructure Market Organization Size Outlook
- Small and Medium-sized Enterprises (SMEs)
- Large Enterprises
Blockchain In Infrastructure Market Outlook
- Manufacturing
- Retail
- Transportation and Logistics
- Healthcare
- Financial Services
- Government
Blockchain In Infrastructure Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
10.83 (USD Billion) |
| Market Size 2023 |
13.66 (USD Billion) |
| Market Size 2032 |
110.24 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
26.11% (2024-2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2019-2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Harmony, Polygon, Fantom, Avalanche, Algorand, Elrond, Filecoin, Helium, Cosmos, Polkadot, Tezos, NEAR Protocol, Cronos, Flow |
| Segments Covered |
Deployment Model, Infrastructure Layer, Application, Organization Size, Industry, Region |
| Key Market Opportunities |
Smart Contract Deployment Data Security Enhancements Improved Network Interoperability Scalability and Performance Upgrades Traceability and Compliance Advancements |
| Key Market Dynamics |
Decentralized Computing Transparency and Security Supply Chain Optimization Data Integrity Smart Contracts |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The blockchain in infrastructure market is anticipated to expand at a CAGR of 26.11% over the forecast period from 2024 to 2032, reaching a market size of approximately USD 110.24 billion by 2032.
The blockchain in infrastructure market was valued at approximately USD 13.66 billion in 2023.
North America is projected to dominate the blockchain in infrastructure market with a significant market share throughout the forecast period.
Rising demand for enhanced security, transparency, and efficiency in infrastructure management are primarily driving the growth of the blockchain in infrastructure market.
Blockchain technology finds applications in various infrastructure domains, including supply chain management, energy management, and digital identity management.
Some of the prominent players operating in the Blockchain in Infrastructure Market include IBM, Microsoft, Amazon Web Services (AWS), Oracle, and SAP.
Lack of standardization, interoperability issues, and regulatory uncertainties pose challenges to the widespread adoption of Blockchain in Infrastructure.
The blockchain in infrastructure market is projected to reach a market size of approximately USD 62.97 billion by 2028.
Industries such as manufacturing, energy, transportation, and healthcare are anticipated to propel the demand for blockchain in infrastructure solutions.
Blockchain enables secure and transparent data sharing, streamlines processes, and enhances the traceability and accountability of infrastructure assets.
