Global Industry Analysis of Blockchain as a service (BaaS) Market: Growth and Trends
* Our analysis is focused on the growth and current trends in the blockchain industry. With time, the blockchain market size is expected to grow in terms of demand, supply, revenue, mainstream adoption, etc. This Blockchain, as a service market research analysis, will also look into the forces driving the blockchain market.
Using Blockchain as a service (BaaS), enterprises were and will be able to build, host, and deploy their blockchain apps, agreements, and utilizes. To keep the infrastructure responsive and functional, the cloud service provider supports all operations. The cloud-based blockchain services increase blockchain adoption across different businesses and industries.
It will interest you to know that the concept of Blockchain as a service (BaaS) is quite similar to Software as a service (SaaS). Currently, lots of small and medium businesses are keen to adopt the blockchain technology. The major challenge has been the complexities and operation-level issues like configuration the alignment of the infrastructure.
It is basically to tackle the challenges mentioned above that prompted leading blockchain tech organizations and startups to introduce this solution called Blockchain as a service (BaaS) model. This Blockchain as a service model can be quickly adopted by different blockchain technology users.
The Blockchain, as a service model, sets up all external services needed to set up the blockchain technology and infrastructure for customers. The primary factor increasing the adoption of Blockchain as a service (BaaS) market is that it enables organizations to focus on their core jobs instead of spending precious time to set up infrastructure facilities.
Market Overview Of Blockchain As A Service Market
The compound annual growth rate of Blockchain as a service market is expected to be over 15.2% according to mordorintelligence. It is expected to be between 2019-2024. Owing to the expansion of the cryptocurrency market in December 2017, many new users have gained quality knowledge about blockchain technology. Out of sheer curiosity, many people and organizations have started exploring this new, relatively new technology.
This has led to an increase in the number of blockchain and cryptocurrency users. Over the past few years, the bitcoin blockchain market size has experienced a steep rise. Like a second name, Blockchain is also referred to as the technology of trust. This is so because it does not have a single point of failure and cannot be altered from a single computer.
Blockchain technology allows specific tools like “smart contract,” which automates manual processes ranging from compliance to the transaction, to distributing the contents of a will. Such desirable features prompted the banking, financial services, and insurance to continue to leverage Blockchain and its applications. One downside of Blockchain is the fact that it requires huge investment when it comes to setting up the infrastructure and maintaining it. In other words, Blockchain is more cost-intensive compared to other traditional databases.
Blockchain also consumes an enormous amount of energy and requires massive bandwidth that the developing countries are struggling to have. Blockchain as a service (BaaS) market is well suited for organizations that outsource the technological aspect of their business and not involved in understanding the working mechanism of the blockchain infrastructure.
The Blockchain as a service market size is growing every day and gaining traction with SMEs. The reason is the fact that transactions are made flexible and supported by quality security features. Enterprise blockchain market size is also on the rise due to the efficient blockchain services that help to secure digital entities and online authentication of personal identities. The features mentioned above continue to drive the demand for Blockchain as a service offering.
Key Blockchain As A Service Market Trends
Although this disruptive and groundbreaking technology still has lots of things to offer, it is poised to evolve even further. From last year’s buzz and the entrance of regulators, Blockchain maintains its steady and solid ascendancy. Below are the key market trends of Blockchain as a service market:
BFSI is Taking Up The Largest Market Share
It will interest you to know that the Blockchain as a service market offering is disrupting the banking, financial services, and insurance (BFSI) industry. As it stands, banks and financial service companies are among the leading enterprises exploring the benefits and application of blockchain technology.
You can attribute this to the numerous, highly valuable decentralized applications of Blockchain. Such decentralized applications have given rise to new business models in different areas like cross-border payments, internet banking, exchanges, remittance, trade finance, and Know Your Customer (KYC).
Although it is still in the early stage in the market, the banks and other financial institutions are exploring the viable possibilities of blockchain technology. The increasing investments by these financial institutions are most likely to boost Blockchain as a service market growth and size. Enterprise blockchain market size is going to experience significant growth.
The Asia-Pacific Will Most Likely Experience The Highest Growth Rate
Since June of 2018, the Chinese government has been promoting the adoption of blockchain technology owing to its numerous advantages. You will be amazed to know that most of the mining operations are happening in China. The government of Thailand positively accepted cryptocurrency projects with the Thai regulators establishing a cryptocurrency license in 2018 to promote exchanges and ICOs. In Thailand, clear and specific guidelines have been put in place for foreign blockchain businesses.
This year (2019), the South Korean government spent a whopping USD 880 million on blockchain development alone. Also, Huawei, which is a leading global ICT solutions provider, announced the launch of its hyperledger-based blockchain service last year (2018) in China. Such move by Huawei was to enable companies to develop smart contracts on a distributed ledger network for several use cases.
With the above-mentioned factors, the Asia-Pacific is expected to witness the fastest growth rate in the coming years.
The Competitive Landscape
It is no surprise that the potential of Blockchain as a service market offering has been recognized by some of the world’s largest software companies. You have to know that big cloud providers such as Amazon, IBM, and Microsoft have developed their own Blockchain as service platforms. These platforms are already available for their cloud customers.
In March 2019, Tata Consultancy Services (TCS) collaborated with R3 technology and Microsoft to adopt a scalable cross-industry blockchain platform. The anchor solutions built on these platforms include anti-counterfeiting of luxury goods, affordable mobility, shared telecom infrastructure for 5G, skills marketplace, and loyalty and reward programs.
IBM launched the IBM Food Trust Solution generally available in February 2019. It was no coincidence that the latest company to experiment with the IBM Food Trust Solution is the Albertsons Companies, the second-largest supermarket in the world by sales.
The Major Players In The Blockchain As A Service Market Industry
These major players are proof that the Blockchain as a service market is highly profitable as it is competitive. They include the following:
Amazon Web Services
Huawei Technologies Co. Ltd
Blockchain may be a revolution, but it is only in its nascent stage. However, Blockchain as a service market may well be the missing link between the technology and its mainstream adoption. The reason is that Blockchain cannot become mainstream if it is only isolated to specific industries. Therefore, the collaboration between countries, regulators, industry competitors, consumers, the legal community will be required to achieve a sustainable solution and integration of blockchain technology into global economies.
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