Smart Contracts Market
The global smart contracts market size was worth around USD 1750 Million in 2022 and is predicted to grow to around USD 9850 Million by 2030 with a compound annual growth rate (CAGR) of roughly 24% between 2023 and 2030. The report analyzes the global smart contracts market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the smart contracts market.
Smart contracts are advanced computer programs or transactional protocols dealing with the automatic and computerized execution or control of legally applicable actions or events as per contractual terms. Transaction Protocol Data Unit (TPDU) is a protocol based on packet switching and is designed to aid financial transactions that are processed over an X.25 network. Smart contracts are designed to eliminate any middlemen, reduce the number of mediators, avoid losses related to fraud, and eliminate extra costs, or any other unwanted accidental exceptions.
Cryptocurrencies play a crucial role in the use of smart contracts. The one developed by Ethereum, a decentralized, open-source blockchain is considered the most fundamental building block of applications related to decentralized finance (Defi). Vending machines are sometimes mentioned as the oldest and most commonly found form of smart contract implementation. However, smart contracts do not enjoy the authority of actual legal documents and are not considered as legally-binding documents by many institutes.
A large section of legal personnel considers smart contracts just a means of performing obligations that are derived from other agreements like technological methods associated with payments or other commitments related to the transfer of cryptocurrencies or tokens. Many scholars also argue that the declarative nature of the computer program associated with smart contracts may influence the validity of smart contracts. Ethereum smart contracts are written in a Turing-complete programming language Solidity and are compiled into low-level p-code which is then executed by Ethereum Virtual Machine. However, due to halting problems, the Turing-completeness process may be considered risky by many scholars and is avoided by Vyper language.
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The adoption of smart contracts received a positive push during the Covid-19 peak. Since the virus was able to detect and reveal limitations in the healthcare sector especially pertaining to the way patients' data and payment was handled, many medical facilities witnessed a high adoption rate for smart contracts in order to deal with these problems. As per research conclusions, blockchain technology can be efficiently used for secure storage and retrieval of patient data.
Rise in adoption of smart contracts across sectors to propel market growth
The global contracts market cap is expected to witness significant growth owing to the rising population and adoption of smart contracts across sectors like banking, supply chain, real estate, insurance, and government. As per Statista, over USD 6.6 billion was spent on blockchain solutions in 2021. These transaction protocols have proven to be extremely useful in the banking sector which is an exponentially growing segment and one of the largest consumers of smart contracts.
Many banks use blockchain technology or smart contracts to avoid identity theft which is a highly prevalent problem in the sector causing banks to lose billions of money. In order to prevent identity theft or to prevent cybercriminals from gaining access to the personal data of bank customers, smart contracts can provide the necessary solution including a highly regulated electronic signature service thus creating an extra layer of protection.
Smart contracts can also be used to automate and standardize operational procedures like Know Your Customer (KYC) processes thus reducing manual work and optimizing the efficiency of the process. These technologically driven contracts also aid communication and transparency in banking transactions by allowing for monitoring everything related to account openings or everyday financial transactions. Such massive applications in one of the strongest industries are expected to aid global market expansion.
The advanced coding used in creating smart contracts to restrict the market growth
Smart contracts are exceptionally advanced tools driven by complex programming languages or coding methods. Any small error in the code may result in complete failure of the development of the smart contract. Tracking and changing the erroneous code may become extremely time-consuming. There is also a lack of standardization or interchangeability of the programming code in the development process resulting in the creation of multiple loopholes which is anticipated to restrict smart contract industry growth trends during the forecast period.
Benefits offered by smart contracts in every sector to provide expansion opportunities
Some of the most common and regular benefits offered by smart contracts include high speed and extremely secure ways of transaction that save cost and time. These basic benefits are offered in every sector and if this technology can be customized to meet the exceptional needs of different industries, the system has the potential to dominate the technology market. Smart contracts eliminate the need for human intervention in repetitive operations thus allowing them the time to work on high-quality work which is projected to provide global smart contract market expansion opportunities.
Lack of skilled professionals to challenge market cap growth
There is a significant dearth in the availability of skilled professionals capable of handling and maintaining such advanced engineering which may create challenging situations for smart contract industry growth. Skilled professionals are needed to not just develop more technologies but to also aid the upgrading of existing technology and make them more user-friendly. Even the institutes deploying smart contracts need in-house personnel to help them navigate through the deployment process to improve overall effectiveness.
The global market is segmented based on end-user, technology, platform, and region.
Based on the end-user industry, the global market segments are healthcare, banking and insurance, transportation/logistics, automotive, government, and sports & entertainment. The largest market share was held by the government sector in the year 2022 with over 36.67% and a market value of USD 53 million. The supply chain managed to generate a market value of USD 37 million in 2020
By technology, the global market segments are ripple, namecoin, and Ethereum. In 2022, Ethereum led the segmental growth with around 43% of the global market share and a value of USD 62.35 million.
By platform, the global market is segmented into sidechains, Ethereum, bitcoin, and NXT. Ethereum generated a revenue of USD 52.6 million and held a market share of 36.3% in 2022. Bitcoin was the second in the segment with an overall value of USD 42 million, in the same year.
|Report Attributes||Report Details|
|Report Name||Smart Contracts Market Research Report|
|Market Size in 2022||USD 1750 Million|
|Market Forecast in 2030||USD 9850 Million|
|Compound Annual Growth Rate||CAGR of 24%|
|Number of Pages||214|
|Forecast Units||Value (USD Million), and Volume (Units)|
|Key Companies Covered||Oracle, IBM, Waves, GoCoin, AWS, Algorand, Tata Consultancy Services, Stratis, Monax Industries, Solana, Infosys, Avalanche, RSK, Nem, and Chainlink|
|Segments Covered||By End-User Industry, By Technology, By Platform, And By Region|
|Regions Covered||North America, Europe, Asia Pacific (APAC), Latin America, Middle East and Africa (MEA)North America, Europe, Asia Pacific (APAC), Latin America, Middle East and Africa (MEA)|
|Countries Covered||North America: U.S and Canada
Europe: Germany, Italy, Russia, U.K, Spain, France, Rest of Europe
APAC: China, Australia, Japan, India, South Korea, South East Asia, Rest of Asia Pacific
Latin America: Brazil, Argentina, Chile
The Middle East And Africa: South Africa, GCC, Rest of MEA
|Historical Year||2017 to 2021|
|Forecast Year||2023 - 2030|
|Customization Scope||Avail customized purchase options to meet your exact research needs. Request For Customization|
North America to generate the highest revenue during the forecast period.
The global smart contracts market is expected to be dominated by North America with the largest global market share of 43.5%. In 2020, North America owned over 41% of global market revenue and within two years the market share jumped by almost 2%. This growth can be attributed to the presence of multiple key players in the region and an overall high rate of acceptance of advanced technologies as compared to other economies.
The US government along with private sector players are known to invest in upgrading technologies and almost all of the major players have originated in the US. In 2020, as per a CNBC report, American citizens earned over 4 billion. This is an indication of high digital technology penetration depth in the North American market
Asia-Pacific is also anticipated to generate high revenues majorly driven by countries like India, China, Singapore, Japan, and South Korea. The regions have been moving towards infrastructural developments where smart contacts can play a crucial role. Asian countries have always shown less resistance to the adoption of cryptocurrencies or digital technology as compared to other regions. This positive approach may aid regional growth during the forecast period.
The global smart contracts market is dominated by players like:
By End-User Industry
The global contracts market cap is expected to witness significant growth owing to the rising population and adoption of smart contracts across sectors like banking, supply chain, real estate, insurance, and government.
According to Zion Market Research, the global smart contracts market size was worth around USD 1750million in 2022 and is predicted to grow to around USD 9850 million by 2030 with a compound annual growth rate (CAGR) of roughly 24% between 2023 and 2030
The global smart contracts market is expected to be dominated by North America with the largest global market share of 43.5%.
The global smart contracts market is dominated by players like Oracle, IBM, Waves, GoCoin, AWS, Algorand, Tata Consultancy Services, Stratis, Monax Industries, Solana, Infosys, Avalanche, RSK, Nem, and Chainlink