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The blockchain technology market in the BFSI sector market share is expected to increase by USD 4.02 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 36.6%.
This Blockchain in Banking, Financial Services and Insurance (BFSI) Market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers blockchain technology market segmentation in the BFSI sector by type (public blockchain, private blockchain, and consortium blockchain) and geography (North America, Europe, APAC, South America, and MEA). The blockchain technology market in the BFSI sector market report also offers information on several market vendors, including Accenture Plc, aelf, AlphaPoint Corp., Amazon.com Inc., Auxesis Services & Technologies International Ltd., Bitfury Group Ltd., Coinbase Global Inc., ConsenSys Software Inc., Deloitte Touche Tohmatsu Ltd., Digital Asset Holdings LLC, Hewlett Packard Enterprise Co., Infosys Ltd., International Business Machines Corp., Inveniam Capital Partners, Marco Polo Network Operations (Ireland) Ltd., Microsoft Corp, NTT DATA Corp., Oracle Corp., Ripple Labs Inc., and Tata Consultancy Services Ltd. among others.
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The increase in Fintech spending is notably driving the blockchain technology market growth in the BFSI sector, although factors such as the trust deficit in BT for financial transactions may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the blockchain technology industry in the BFSI sector. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Blockchain Technology Market Driver in BFSI Sector
One of the key factors driving growth in the blockchain in BFSI market is the increase in FinTech spending. Over the years, the purview of FinTech has extended to include new and innovative front-end consumer products. Many FinTech startup companies provide solutions, which are operated through smartphones or tablets, directly to the customers through licensing or using white label services. The global investment in the FinTech sector increased tremendously by about 200% in a year. The increase in global investments indicates that large corporates like JP Morgan, Morgan Stanley, Barclays, and Santander are changing their value chains and technologies to adopt FinTech. FinTech spending is directly correlated with blockchain technology spending as FinTech companies are developing advanced payment solutions for financial firms.
Key Blockchain Technology Market Trend in BFSI Sector
Growth of quantum computing will be a major trend for the blockchain in BFSI market during the forecast period. Quantum computing refers to the utilization of quantum-mechanical phenomena, such as superposition and quantum entanglement, for data processing and computation purposes. Unlike conventional computers that use bits for data processing, quantum computers utilize qubits that store a considerably large amount of data and perform tasks exponentially fast using less energy. Though quantum computing is still in the development stage, it is considered an existential threat to public-key cryptography. Public key cryptography systems depend on linking a public key and a private key using a large prime number to encrypt the data. It is difficult for conventional computing systems to decrypt public encryption keys. However, with the increase in computational power due to the introduction of quantum computing, the existing public-key cryptography will become vulnerable during the forecast period.
Key Blockchain Technology Market Challenge in BFSI Sector
The trust deficit in blockchain technology for financial transactions will be a major challenge for the blockchain in BFSI market during the forecast period. The technology is still in the nascent stage, and its vulnerabilities are yet to be explored. Many companies are also skeptical about the scalability of blockchain when it comes to handling large volumes of enterprise data. The time taken for transactions and the computing power required for performing a transaction is also major points of concern for some end-users. The total amount of computation for a blockchain is high when compared with process transactions of centralized databases. In a blockchain, the transaction must be processed independently by every node in the network
This blockchain technology market in the BFSI sector market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global blockchain technology market in the banking, financial services, and insurance (BFSI) sector as a part of the global application software market within the global IT software market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the blockchain technology market in the BFSI sector market during the forecast period.
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
This statistical study of the blockchain technology market in the BFSI sector encompasses successful business strategies deployed by the key vendors. The blockchain technology market in the BFSI sector is fragmented and the vendors are deploying growth strategies such as forming strategic partnerships to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The blockchain technology market in the BFSI sector market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the blockchain technology market in the BFSI sector market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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47% of the market’s growth will originate from North America during the forecast period. The US and Canada are the key markets for blockchain technology in the BFSI sector in North America. However, the market growth rate in this region will be slower than the growth of the market in other regions.
The rising demand for blockchain technology such as public blockchain will facilitate the blockchain technology market growth in the BFSI sector in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
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The blockchain technology market share growth in the BFSI sector by the public blockchain segment will be significant during the forecast period. The introduction of public blockchain in the BFSI sector has centralized the workflow process in financial institutions. Such developments will fuel the growth of the public blockchain segment, which, in turn, will drive the growth of the global blockchain technology market in the BFSI sector.
This report provides an accurate prediction of the contribution of all the segments to the growth of the blockchain technology market size in the BFSI sector and actionable market insights on post COVID-19 impact on each segment.
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Blockchain Technology Market In BFSI Sector Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2021 |
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Forecast period |
2022-2026 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 36.6% |
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Market growth 2022-2026 |
$ 4.02 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
26.0 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 47% |
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Key consumer countries |
US, Canada, China, UK, and Germany |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profile Accenture |
Accenture Plc, aelf, AlphaPoint Corp., Amazon.com Inc., Auxesis Services & Technologies International Ltd., Bitfury Group Ltd., Coinbase Global Inc., ConsenSys Software Inc., Deloitte Touche Tohmatsu Ltd., Digital Asset Holdings LLC, Hewlett Packard Enterprise Co., Infosys Ltd., International Business Machines Corp., Inveniam Capital Partners, Marco Polo Network Operations (Ireland) Ltd., Microsoft Corp, NTT DATA Corp., Oracle Corp., Ripple Labs Inc., and Tata Consultancy Services Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Type
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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