In terms of revenue, the Global Blockchain In Banking And Financial Services Market is expected to reach USD 2,5817.9 Million by 2028, growing at a Compound Annual Growth Rate (CAGR) of 50.60% from 2022 to 2028. The Global Blockchain In Banking And Financial Services Market is gaining momentum over the forecast period owing to the increasing adoption of distributed ledger technologies (DLT) in the banking and financial services sector as it allows transactions to be recorded chronologically and publicly, is boosting the growth of the blockchain technology market. This technology is gaining popularity because of its ability to provide transparency, security, and efficiency. Moreover, the growing demand for digitalization in the banking and financial services sector, the rising number of mergers and acquisitions, and technological advancements are some of the major factors fueling the growth of the global blockchain technology market. However, the high cost associated with the implementation of DLTs and lack of standardization among different vendors is restraining the growth of the market.
Key Highlights from the Report:
- The private blockchain segment dominated the market growth at a substantial Compound Annual Growth Rate (CAGR). This is due to its advantages in banking & financial applications such as high security and reduction of fraud these factors accentuated the segment growth in 2021.
- The Flexography segment held a significant market share in 2021. The market growth has been spurred by fund transactions since it is more programmable and easier to handle.
- North America is the largest regional segment owing to the presence of major market players, and ongoing developments of blockchain technology in this region.
Some of the key players in the Global Blockchain In Banking And Financial Services Market include - TE Connectivity, Amphenol, Prysmian Group, Fujitsu, Siemens, Mitsubishi Electric, Molex, Nexans, Huawei, Volex PLC and others.
Blockchain technology has the advantages of increased efficiency, enhanced security, immutable records, and fast transaction times in banking and financial services. Growing adoption of blockchain in the banking industry and increasing use of cryptocurrencies will drive the growth of blockchain in the banking and financial services market during the forecast period. Advantages such as capital optimization, lower bank operating costs, increased transparency, and increased financial solutions have led to the rise of Blockchain In Banking And Financial Services Market trends. Blockchain in cryptocurrencies helps to record every transaction and acts as a distributed ledger without any central authority to keep such records. For example, in October 2020, JPMorgan Chase shared that its cryptocurrency, JPM Coin, was used commercially for the first time to send payments globally. Additionally, they announced the launch of a new business unit, Onyx, Blockchain, and Financial System Digital Currency.
The growing adoption of cross-border payments, digital ledgers, consortium blockchains, and increased investment in blockchain-based solutions by banks have further contributed to their use. Blockchain in banking and finance helps minimize fraud by eliminating the need for third parties. This also adds to the benefit of faster clearing and settlement of trades. Blockchain in financial services also ensures the security of databases and transactions by providing transparency and reducing fraud.
North America is expected to emerge as a potential market for Blockchain In Banking And Financial Services. The market growth in the region is attributed to the fact that the U.S. has the highest number of banks and other financial institutions in the world. In addition, the U.S. government has been actively promoting the use of blockchain technology in the banking sector. As a result, many companies have established their headquarters in this region.