Blockchain Interoperability Market Trends

Blockchain Interoperability Market Overview

Blockchain Interoperability Market Size was valued at USD 0.4 Billion in 2022. The Blockchain Interoperability market industry is projected to grow from USD 0.51 Billion in 2023 to USD 3.77 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 28.30% during the forecast period (2023 - 2032).

Increasing cross-chain asset transfer requirements across enterprises, growing adoption of blockchain and regulatory support of government are the key market drivers enhancing the market growth.

Figure 1: Blockchain Interoperability Market Size, 2023-2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Blockchain Interoperability Market Trends

Enhancing blockchain ecosystem utility is driving the market growth

The potential of blockchain technology has been shown in a number of sectors, including finance, supply chains, healthcare, and government. Although each of these parties may be using a different blockchain network, many of these use cases frequently call for cooperation across many parties. These networks' interconnectivity thanks to interoperability makes it easier to create and implement intricate, multi-network use cases.

The ability to conduct cross-chain transactions is one of the main advantages of blockchain interoperability. It might be difficult for different blockchains to communicate with one another and exchange value or data since they frequently use different protocols and standards. By bridging these gaps, interoperability solutions enable users to transact easily across various blockchains. Think about a situation when a user wants to exchange a digital asset from one blockchain for another without using a centralized exchange, for instance. By making it simpler for consumers to access and use various blockchain networks, interoperability facilitates the secure and trustless exchange of assets between multiple blockchains, increasing the utility of blockchain technology.

Blockchain technology has shown promise in a number of industries, including identity management, supply chain management, and banking. However, for many use cases to be successful, it is necessary to combine different blockchain networks. Blockchain applications can be used in a wider range of complicated, multi-network use cases because to interoperability. For instance, the supply chain sector may use numerous blockchains for monitoring, authentication, and payment along a product's journey. These dissimilar blockchains may connect with one other thanks to interoperability, resulting in a comprehensive and impenetrable supply chain solution that improves transparency and traceability. Thus, driving the weight loss products market revenue.

Blockchain Interoperability Market Segment

InsightsBlockchain Interoperability Vertical Insights

The global Blockchain Interoperability market segmentation, based on Vertical, includes BFSI, Healthcare, Gaming & Entertainment, IT & ITes, Telecommunication, Food & Agriculture, and other. The BFIS segment accounted for 25% of the blockchain interoperability market share in 2022. The requirement for safe, transparent, and effective data exchange will, nevertheless, drive the healthcare category to have the largest CAGR growth during the projection period.

These solutions improve patient data management, streamline interoperability between dissimilar systems, and strengthen the accuracy of medical records. Interoperability solutions address major industrial concerns by potentially ensuring accurate medical histories, facilitating research collaboration, and maintaining patient privacy. They also make it possible for smart contracts and IoT devices to be integrated seamlessly, opening the door to better administrative and patient care.

Blockchain Interoperability Application Insights

The global Blockchain Interoperability market segmentation, based on Application includes dApps, Digital Assets/NETs, Cross-chain Trading & Exchange, Cross-chain Messageing & Data Sharing. The dApps segment held over 36% of the blockchain interoperability market share in 2022. Due to their capacity to go beyond the constraints of single-chain ecosystems, solutions for blockchain interoperability are becoming more and more popular in decentralized applications. Through seamless connectivity between several blockchain networks, these solutions promote cross-chain asset transactions and improve functionality and scalability. Interoperability allows access to a larger user base as decentralized applications grow, utilizing the advantages of different blockchains. This encourages innovation and makes it possible for developers to produce more robust and diverse applications that provide a comprehensive and integrated user experience.

Figure 2: Blockchain Interoperability Market, by Application, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Blockchain Interoperability Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Blockchain Interoperability Market dominated this market in 2022 (45.80%). The North American region has the largest market size for blockchain interoperability due to a number of important considerations. These include the region's growing use of blockchain technology across a range of sectors, including finance, healthcare, and supply chain management. Further, the U.S. Blockchain Interoperability market held the largest market share, and the Canada Blockchain Interoperability market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: BLOCKCHAIN INTEROPERABILITY MARKET SHARE BY REGION 2022 (USD Billion)

Europe Blockchain Interoperability market accounts for the second-largest market share. With multiple nations adopting blockchain technology for a range of uses, Europe has been a prominent player in the area. Blockchain technology has drawn increasing interest from European nations, including the UK, Germany, Switzerland, and Estonia. The popularity of interoperability solutions to link various blockchain networks has surged as a result of this interest. Blockchain development in the region has been affected by European Union (EU) legislation, such as the General Data Protection Regulation (GDPR). In order to guarantee data privacy and compliance, interoperability solutions had to be in line with these regulations.

The Asia-Pacific Blockchain Interoperability Market is expected to grow at the fastest CAGR from 2023 to 2032. APAC is renowned for having a diversified blockchain ecosystem, with hotspots for blockchain innovation including China, Japan, Singapore, and South Korea. Different networks and ecosystems are connected via interoperability solutions. Cross-border trade and logistics are highly prioritized in APAC countries. Blockchain technology can streamline and secure global commerce processes, but only if it is interoperable. Moreover, China’s Blockchain Interoperability market held the largest market share, and the Indian Blockchain Interoperability market was the fastest growing market in the Asia-Pacific region.

Blockchain Interoperability Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Blockchain Interoperability market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Blockchain Interoperability industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Blockchain Interoperability industry to benefit clients and increase the market sector. In recent years, the Blockchain Interoperability industry has offered some of the most significant advantages to medicine. Major players in the Blockchain Interoperability market, including Oracle Corporation, R3, LeewayHertz, Ontology, INERY PTE. LTD., Datachain, Inc., Quant Network Limited, Band protocol, LiquidApps and Orb Labs. are attempting to increase market demand by investing in research and development operations.

A global technology business, Oracle Corporation is based in Redwood City, California, in the United States. Oracle, which was established in 1977 by Larry Ellison, Bob Miner, and Ed Oates, has developed into one of the biggest and most significant technological businesses in the world. This category consists of traditional software licensing and support in addition to Oracle's cloud-based applications, platform-as-a-service (PaaS), and infrastructure-as-a-service (IaaS) products. Enterprise resource planning (ERP), customer relationship management (CRM), human capital management (HCM), and other cloud-based software products are all available from Oracle.

Ontology is a blockchain platform and distributed ledger technology (DLT) project that aims to facilitate trust across a number of industries, including finance, supply chain management, identity verification, and more. Its objective is to build a solid platform for producing decentralized applications (dApps). Ontology has rapidly gained recognition in the blockchain industry since its creation in 2017 as a result of its distinctive strategy and wide range of products and services. Ontology places a high importance on interoperability and cross-chain capability. It aims to enable data transmission and communication between various blockchain networks by bridging them. The fact that there are so many segregated networks in the blockchain sector is one of the primary difficulties that this emphasis on interoperability helps to resolve.

Key Companies in the Blockchain Interoperability market include

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  Oracle Corporation

  
  


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  R3

  
  


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  LeewayHertz

  
  


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  Ontology

  
  


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  INERY PTE. LTD.

  
  


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  Datachain, Inc.

  
  


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  Quant Network Limited

  
  


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  Band protocol

  
  


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  LiquidApps

  
  


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  Orb Labs.

  
  

Blockchain Interoperability Industry Developments

In June 2024, Deutsche Bank collaborated with other prominent financial institutions and Web3 innovators to create a comprehensive report on the methods to achieve interoperability for tokenized assets across both public and private blockchains, as well as traditional legacy systems. Deutsche Bank provided direct insights to the study, detailing their experimentation with blockchain and tokenization from the perspective of asset servicing. The bank explains its rationale for believing that these technologies can deliver cost-effective, efficient, and expedited benefit for clients with non-conventional business models.

The text also explores the importance of interoperability between blockchains and traditional systems, as well as the problems associated with achieving it. Asset servicers will likely need to implement multichain asset interoperability and servicing to accommodate their clientele that are adopting various blockchain networks. Asset servicers must possess the knowledge and expertise to effectively handle and manage interoperability and scalability, while also maintaining the security of digital assets. This is crucial for facilitating sustainable growth that can be enhanced by numerous chains.

In July 2024, Digital Asset announced that 45 institutions had taken part in a Distributed Ledger Technology (DLT) interoperability experiment of the Canton Network since August of the previous year. Currently, institutions have constructed separate and isolated distributed ledger technology (DLT) networks. It is crucial to establish connections across these networks in order to fully realize the potential of tokenization. Today, Digital Asset introduced the 'Global Synchronizer', a decentralized infrastructure that facilitates the Canton Network.

The project is governed by the Global Synchronizer Foundation and has 32 participants. Additionally, a utility coin is used for the public permissioned network. Numerous prominent individuals are participating in the launch. The companies included include Broadridge, Calastone, Cumberland DRW, Equilend, SBI Digital Assets, Tradeweb, and Standard Chartered's Zodia Custody. The 32 participants encompass a diverse range of responsibilities, such as serving as super validators, node operators, governance members, and organizations that operate apps on the network. Not all of the major banks and stock exchanges that participated in prior network tests are included in the initial group of participants.

Blockchain Interoperability Market Segmentation

Blockchain Interoperability Vertical Outlook

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  BFSI

  
  


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  Healthcare

  
  


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  Gaming & Entertainment

  
  


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  IT & ITes

  
  


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  Telecommunication

  
  


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  Food & Agriculture

  
  


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  Other

  
  

Blockchain Interoperability Application Outlook

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  dApps

  
  


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  Digital Assets/NETs

  
  


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  Cross-chain Trading & Exchange

  
  


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  Cross-chain Messageing & Data Sharing

  
  

Blockchain Interoperability Regional Outlook

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  North America

  
  

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  U.S.

  
  


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  Canada

  
  

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  Europe

  
  

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  Germany

  
  


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  France

  
  


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  UK

  
  


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  Italy

  
  


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  Spain

  
  


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  Rest of Europe

  
  

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  Asia-Pacific

  
  
  
  
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    China

    
    
  
  
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    Japan

    
    
  
  
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    India

    
    
  
  
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    Australia

    
    
  
  
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    South Korea

    
    
  
  
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    Australia

    
    
  
  
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    Rest of Asia-Pacific

    
    
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America