Blockchain-as-a-Service Market Insights
The global Blockchain-as-a-Service (BaaS) market is set for remarkable growth from 2024 to 2028. The market size is projected to grow from $1.5 billion in 2024 to $3.37 billion by 2029, reflecting a CAGR of 17.5% (source: here). However, another source (here) projects even more aggressive growth, with estimates ranging from $6.75 billion in 2024 to $27.39 billion by 2028, at a CAGR of 41.9%.
North America currently holds the largest share of the BaaS market. Meanwhile, the Asia-Pacific region is anticipated to be the fastest-growing market during the forecast period.
In April, I published a post titled “The State of Blockchain Adoption in the Enterprise” (here), noting that enterprise decision-makers hesitate to adopt blockchain technology due to concerns about scalability challenges, security vulnerabilities, limited real-world readiness, difficulty in gaining stakeholder buy-in, and a shortage of skilled professionals. These concerns are further compounded by the need for proven applications and robust support for implementation and deployment.
According to recently published Technavio 2024 research (source here), the SME (small and medium-sized enterprises) segment is set to expand at the highest CAGR of 77.4%, gaining 2.0% of the market share during the forecast period. Conversely, the large enterprises segment, while still growing at a robust CAGR of 73.0%, is expected to experience the slowest growth among segments, resulting in a 2.0% erosion of its market share during this period.
Interestingly, SMEs are emerging as a key growth driver in the blockchain market. Their agility, flexibility, and growing focus on digital transformation are fueling a staggering CAGR of 77.4%, enabling them to capture an additional 2.0% of the market share. This trend highlights a significant shift in the competitive landscape, as SMEs close the gap with larger enterprises.
By contrast, large enterprises, hindered by legacy systems, silos, slower decision-making, and the challenges of scaling innovation across vast networks, are growing more slowly, with a resulting loss of market share. This dynamic underscores the need for BaaS vendors to rethink strategies and form channel partnerships with to reach the SME and stay competitive.
The BaaS market is witnessing significant adoption across various sectors. In banking, financial services, and insurance industry, which holds the largest market share, blockchain is being utilized for cross-border payments, remittance, and KYC (Know Your Customer) processes. Supply chain management is adopting blockchain to enhance transparency and efficiency, while the healthcare sector leverages it to improve data management and security. Governments are also exploring blockchain for identity management and public services.
Technological advancements and growing adoption across industries and regions are driving the BaaS market's expansion, fueling both short- and long-term growth.
Conclusion
The research that appears in this post was conducted before the presidential election on November 7th, in which the winner, President Trump, pledged to deregulate cryptocurrency. As a result, the blockchain sector is expected to experience significant growth – somewhat analogous to the actual increase in Bitcoin's valuation since the election.
The rapid growth of the Blockchain-as-a-Service market highlights its transformative potential across industries, driven by increasing adoption, technological advancements, and the agility of SMEs in embracing innovation. As SMEs continue to challenge traditional market leaders, collaboration and strategic innovation will be critical for enterprises to remain competitive and capitalize on blockchain's full potential.