The main driving factor of this momentum will be greater adoption by financial institutions. The compound annual growth rate on a global scale will be greater than 75%.
The international blockchain technology market will achieve a significant growth in the next five years. A report produced by the U.S. firm Global Market Insights states that this technology, which is part of Bitcoin as a digital system, will have a capital injection that will exceed USD 16 billion by 2024.
The consulting firm prepared a 180-page report entitled Blockchain Technology Market in which it analyzes the factors that would encourage this growth. The report also indicates the areas that will achieve greater development and the regions in which greater investments are expected.
The global blockchain technology market will be driven mainly by greater adoption on the part of financial institutions. It is estimated that the Asia Pacific blockchain market will register a prominent compound annual growth rate (CAGR) of more than 87%, according to a press release by the company.
Global Market Insights noted that the value of the blockchain market was about USD 200 million by 2017. However, it said that it will grow more than 80 times with an estimated annual rate of 75% by 2024. That situation would leave the door open the door to the development of solutions in multiple fields such as identity management, international payments, application development, government sector, health care, infrastructure providers, and the financial sector.
The report is comprised of nine chapters and particular attention is paid to the blockchains to which the third segment, entitled Perspectives of the Global Blockchain Industry, was dedicated. It should be noted that here they analyze the types of blockchains, regulations, use cases, consortia, potential growth, limitations and the challenges for the future.
Growth Announced
The Global Market Insights report was released some days after the research and consulting firm Gartner, through its research director Fabio Chesini, noted that the deployment of blockchains in the financial and banking sector poses several challenges. The executive explained that the adoption of interoperability standards in this field will take between three and five years, after a continuous maturation process, in order to become a dominant reality.
Announcements have also been made in Latin America about the adoption of blockchains in the local financial system. On September 12th, the Central Bank of Chile stated that in November of this year it will publish the results of its tests with blockchains.
Known as blockchain, or distributed accounting, this technology is part of a group of protocols introduced through the digital system Bitcoin and its associated cryptocurrency BTC. Its design allows conducting transactions between two or more people reliably and securely through the Internet, but without the participation of intermediaries or a centralized authority.
To conclude, it is worth reiterating that the adoption of blockchain allows the creation of technological solutions in different areas. However, several years will be required before its final adoption in the financial and banking. This technology offers the advantages of being reliable and secure, which are desired features among users.
By Willmen Blanco
