Amid the ongoing crisis in the crypto market space, an upbeat forecast about the global market for fintech blockchain brings a breath of fresh air. The global market for fintech blockchain is estimated to grow at a CAGR of 43.8% to touch US$8.7 billion by 2030, according to a report by market research firm Spherical Insights & Consulting.
The new number is a whopping increase from US$1.1 billion estimated in 2021.
For the uninitiated, fintech is a new financial technology focused on innovation and providing technologically-enabled financial solutions and services. Fintech is the primary driving force behind the creation and invention of blockchain technology on which the entire crypto industry is built upon.
The report cited the rising customer demand for Bitcoin; the need for faster, cheaper, cross-border payment systems; and higher compatibility with the financial services ecosystem. What’s more, the growing demand for complete security mechanisms is the key factor driving the growth of the fintech blockchain market.
However, the absence of legal standards and regulatory frameworks and the economic downturn caused by the Covid-19 epidemic have posed significant challenges to the growth of the fintech blockchain market.
Blockchain in telecom and post-services
The global blockchain industry in the telecommunications and post-services segments is projected to grow exponentially during 2020 to 2030. The industry is expected to clock a growth rate of about 42.83% to touch a valuation of around $5.18 billion by the end of 2030, according to a separate report by leading market analysis company Market Research Future (MRFR).
Why is the global blockchain market expected to grow?
Blockchain technology is still nascent, but it is a fast-evolving technology widely used across various industries and applications to secure transaction processes. Blockchain and its underlying technology provide benefits such as better proficiency in new products, decreased operational costs, and reliable customer data tracking. Furthermore, the security offered by blockchain technology ensures a low incidence of fraud and forgery.
Despite the global population reaching 8 billion, blockchain technology is accessible only to a small section of the worldwide populace. With the growing adoption of blockchain, the market is expected to expand further in the next 10 years.