Similar to a previous report which estimates almost 700% global increase in annual revenue for enterprise applications of blockchain in the next ten years, a new study has revealed that Asia will grow at the highest compound annual growth rate CAGR when the global blockchain market grows at a projected rate of more than 2000% in the next six years.
According to Blockchain Distributed Ledger Market by Type and End User: Global Opportunity Analysis and Industry Forecast 2017–2023 published by US-based Allied Market Research, the global blockchain market – which as at 2016 accounts for $228 million – is expected to reach $5.43 billion between 2017 and 2023 at a CAGR expansion of 57.6%.
Citing the presence of key companies in the region, the report says North America is expected to maintain its dominance throughout the forecast period – it dominated the global market in terms of revenue accounting as at 2016 with more than 40% share of the market followed by Europe.
However, despite this dominance, Asian countries are expected to record the most improved CAGR which provides a constant rate of return over a given period.
The increase in Internet transitions, upsurge in use of Internet, and rise in adoption of advanced technologies for payments are expected to boost growth in China, Japan, South Korea, and India.
China and India have been at the forefront of testing new services using the blockchain technology both regionally and globally. Some of the new use cases introduced recently are Chinese banks following the government's lead to use the technology to increase transparency and combat fraud in its financial sector and India's launch of its first blockchain exploration consortium for banks.
Alibaba, IBM and several other giant corporations have been pushing the technology's use particularly in China.
Speaking on what he and his partner see about blockchain in China that others don't, Matej Michalko of DECENT says in a chat with 8btc that they discovered that Chinese businessmen, developers, investors live for innovations:
“They want to move fast and get a hold of their particular area of venture as quick as possible. Simply put, they love to hear about blockchain technology and its pluses…I think the right opportunity is the answer.”
One of my aspirations, besides talking about the benefits of decentralized distribution network, is doing a favour to community that raised me into enthusiast I'm now. Blockchain protocol itself needs to get into the spotlight more. What we need is constant attention and it's safe to assume we're succeeding and however smaller part I might play, it's excellent nonetheless.
The report adds that the increase in payment management devices across these top Asian countries as they seek to cater to end users' needs such as in the banking, real estate, stock market and virtual currency industries will help supplement the market growth.
Other factors that would favour the projection includes an increased public awareness of the blockchain technology, small transaction fees for blockchain applications, elimination of third parties in business deals, and a reduced chance of fraud and identity theft.