According to a report by Research and Markets, a leading market research store, the global blockchain-as-a-service (BaaS) sector is anticipated to reach $15.8 billion by 2026 from the current $2.31 billion, recording a compound annual growth rate (CAGR) of 46.9%.
Per the report:
“Organizations are leveraging numerous advantages of BaaS services, comprising security, high immutability capability, cost-effectiveness, secure decentralization, and others.”
Small and medium firms have leveraged blockchain-as-a-service tools and services to develop smart contracts, payment systems, and decentralised applications. The high cryptocurrency adoption rate and notable investments in blockchain-based projects by nations such as Japan, the United Kingdom, and the United States are expected to enhance the market size during the forecast period.
According to a recent report by Chainalysis, the global cryptocurrency adoption rate increased by more than 881% in the last 12 months, driven by factors like huge institutional investments and increased P2P trading.
Escalating DLT adoption
According to the announcement:
“One of the evolving market drivers is the escalating adoption of distributed ledger technology (DLT) based on advanced analytics. Blockchain services based on the DLT system assist in monitoring and trading through digital currency and offering data sharing in real-time in a secure mode.”
The DLT technology makes transactions transparent and immutable or tamper-proof, and it is highly utilised in different sectors like decentralised finance (DeFi).
DeFi platforms are built on blockchain-based smart contracts that fulfil certain financial functions based on the underlying code. Some of the popular DeFi protocols include lending platforms and decentralised finance.
The United States has taken the lion share in DeFi adoption, followed by Vietnam, Thailand, China, and the UK.
Nevertheless, the BaaS market growth is likely restricted by a shortage of funds and uncertain regulatory & government standards. Meanwhile, the global crypto mining industry is expected to dominate by 2030.
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