The Global Blockchain as a Service Market size is expected to reach $17.9 billion by 2027, rising at a market growth of 54.2% CAGR during the forecast period. Blockchain-as-a-Service (BaaS) refers to a managed blockchain platform. The vendors of this platform provide infrastructure and blockchain building tools that enable users to develop digital services and blockchain applications on a distributed network.
Earlier, blockchain applications were only used in cryptocurrencies but as their application development is continuously expanding, there is a surge in its demand as a hosting option. This platform is somewhat similar to software-as-a-service and allows business customers to design their own applications and run them smoothly with a smaller number of issues & problems. This leads to a significant increase in blockchain deployment and improved agility. Blockchain applications are gaining traction in the overall market but small and medium enterprises are facing challenges in setting up these applications as they have restricted IT resources. This platform also offers professional assistance along with hosting services.
Moreover, blockchain as a service is based on the Software as a Service model and also operates in a similar way. This platform enables customers to take maximum advantage of cloud-based solutions to develop, host, and run their own blockchain applications and associated functions on the blockchain. Simultaneously, the cloud-based service vendors support the infrastructure by keeping it operational and agile.
COVID-19 Impact Analysis
The outbreak of the COVID-19 pandemic had a negative impact on various industries across the world. Governments across the world imposed stringent regulations that restricted the movement. Additionally, nations are still trying to find ways to defeat the pandemic and reduce its impact on health, livelihoods, and businesses. Several industries also witnessed a slowdown in the manufacturing activities of the products. In addition, the supply chain of non-essential products was disrupted due to the different COVID-19 restrictions.
Market Growth Factors:
Increasing adoption of blockchain technology in the music and healthcare sector
Various companies are operating in the music and healthcare sector that have started adopting blockchain technology. Blockchain technology in the music industry helps in sustaining a distributed database about the ownership of music rights. In addition, verification & authentication of all the documents for legal services can also be done by utilizing blockchain technology. Since the outbreak of the global Covid-19 pandemic, blockchain technology has recorded significant growth. It is because this technology plays an important role in making a platform for monitoring the Covid-19 pandemic.
Increasing demand for digital identity
Identity and security are the major and complex issues for the companies as well as government systems. Blockchain technology provides beneficial services for solving such issues. In addition, several blockchain-based identity platforms are used in unregulated nations or nations with poor identification systems. There are many governments that are using blockchain technology-based identification platforms at the national level to encourage security & transparency in transactions around all over the public and private sectors.
Market Restraining Factor:
Huge cost involved at Initial Stage Proving
The blockchain technology market is increasing at a fast pace due to its multi-tasking capabilities over numerous applications. Huge venture capital funds & high investments are needed to establish a specialized infrastructure & architecture. Though, this starting process and operability are more complicated and need more experienced resources. This process also takes vast bandwidth, cooling system, energy, network components, data centers, and others. However, SMEs do not have enough budget to invest in the adoption of Baas solutions, which is hampering the market growth.
Component Outlook
Based on Component, the market is segmented into Tools and Services. The tools segment is anticipated to acquire the largest market share of the blockchain as a service market over the forecasting years. These tools provide a number of advantages to companies of all sizes and hence increasing the adoption of blockchain as a service tool. BaaS tools provide its customers the potential to build their own blockchain applications & solutions and allow them to set up a consortium, public, and private-based blockchain environments.
Application Outlook
Based on Application, the market is segmented into Supply Chain Management, Payments, Identity Management, Smart Contracts, Governance, Risk, & Compliance Management and Others. Smart contracts cut down the chances of occurrence of risks by verifying, storing, and implementing contractual rules using blockchain technology that decentralizes the accountability and liability of the contracts. Further, these contracts enable included parties to access and monitor implemented contracts that terminate the chances of data loss & fraud and decrease the operational cost & time, which leads to an increase in the dependability on the system.
Enterprise Size Outlook
Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprises. SMEs segment is expected to display a promising growth rate in the blockchain as a service market during the forecasting years. In comparison to on-premises networking solutions, cloud-based solutions are more flexible and cost-effective due to which, SMEs are shifting to cloud-based solutions. Additionally, a significant surge is witnessed in the deployment of BaaS solutions as they can flexibly manage the IT infrastructure according to the need of SMEs. Moreover, BaaS solutions help SMEs in making quick decisions and responding in real-time to stay competitive in the market and also keep the customer data secured along with reducing the operating cost.
End User Outlook
Based on End User, the market is segmented into BFSI, Retail & eCommerce, Manufacturing, Healthcare, Government, Energy & Utilities, and Others. Factors such as the growing adoption of cross-border payments, increasing investment by banks in blockchain-based solutions, digital ledger & consortium blockchain, and rising demand for transparency & liability of transactions via GRC management tools is expected to create new growth opportunities for the BaaS market in the BFSI sector. Moreover, minimized processing costs, increasing demand for improved smart contracts, scalability, transaction speed, and the growing demand from emerging nations for BaaS solutions are anticipated to drive the growth of the blockchain as a service market in the BFSI sector during the forecasting period.
Regional Outlook
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. North America is expected to emerge as the dominating region in the blockchain as a service market over the forecasting years. Several banks in the North American region like Bank of America, the Royal Bank of Canada, JPMorgan, and other financial service institutions are focusing on deploying blockchain technology and introducing full-scale commercial blockchain technology-based products.
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Oracle Corporation, Huawei Technologies Co., Ltd. and Amazon Web Services are the forerunners in the Blockchain as a Service Market. Companies such as Huawei Technologies Co., Ltd., SAP SE, Accenture plc are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include IBM Corporation, SAP SE, Amazon Web Services, Inc. (Amazon.com), R3, Oracle Corporation, Huawei Technologies Co., Ltd., Hewlett Packard Enterprise, Accenture plc, Wipro Ltd., and Infosys Limited.
Recent Strategies Deployed in Blockchain as a Service Market
Partnerships, Collaborations and Agreements:
- Sep-2021: Huawei joined hands with Shanghai Pudong Development Bank, a joint-stock commercial bank. Together, the entities is expected to introduce the SPDB Finwarehouse blockchain solution during the event of HUAWEI CONNECT 2021. This solution is developed for industrial supply chains and is a creative way to manage pledges for movable warehousing properties.
- Jul-2021: Hewlett Packard Enterprise formed a partnership with F10, a global innovation ecosystem. Together, the companies is expected to improve their innovation strategy and support the global startup ecosystem. Under this partnership, HPE is expected to focus on including simplified processes based on blockchain technology, fraud detection based on machine learning, and increased security & safety leveraging the internet of things (IoT) and artificial intelligence.
- Jul-2021: Oracle Financial Services Software, a unit of Oracle collaborated with Everest, the financial technology provider. Together, the companies is expected to bring blockchain to banks across the world to improve their product portfolio.
- Jun-2021: Oracle teamed up with Deutsche Bank, one of the world’s largest financial services organizations. Through this collaboration, companies is expected to modernize the bank’s database technology and escalate its digital transformation. Moreover, the companies is expected to explore potential utilization for blockchain, AI, data security technologies, and analytics to develop new financial services and products.
- May-2021: SAP teamed up with Eastman, a global specialty materials company. Under this collaboration, the companies is expected to pilot the GreenToken by SAP technology to allow traceability of certified recycled content over the value chain utilizing blockchain technology.
- May-2021: Huawei came into partnership with Idavoll Network, a Polkadot-based DAO platform. This partnership is expected to facilitate the integration of blockchain technologies into the cloud that is expected to allow several valuable features like total traceability for data, utilization of smart contracts, one-point governance, and increased security & transparency.
- Apr-2021: R3 formed a partnership with Consensys. Under this partnership, the companies is expected to design new solutions to Bridge R3 Corda eBL and TradeTrust. Additionally, this partnership is expected to offer Tramés early access to Corda eBL, an application accelerator for digital trade solutions on Corda Enterprise, through R3’s early adopter program. Corda eBL is expected to empower Tramés to expand the functionality of TradeTrust to allow the secure, end-to-end management and transfer of electronic bills of lading (eBLs) over Corda business networks.
- Mar-2021: IBM teamed up with Moderna, an American pharmaceutical and biotechnology company. Together, the companies is expected to explore technologies such as blockchain, hybrid cloud, and artificial intelligence, which is expected to support smarter management of the COVID-19 vaccine. Moreover, companies is expected to put their efforts on opening, standardizing, technology-enabled vaccine distribution approaches that is expected to enhance supply chain visibility and promote near real-time tracking of vaccine administration.
- Nov-2020: IBM came into a partnership with KAYA&KATO, a textile company. Under this partnership, the companies is expected to design a blockchain network for the fashion industry along with the support of the German Federal Ministry for Economic Development (BMZ). The network is built to create transparency about the origin of garments starting from the fiber utilized to the completion of the final product and to offer users the knowledge that their clothes are sustainably manufactured.
- Oct-2020: R3 came into a partnership with Mphasis, an Information Technology (IT) solutions provider specializing in cloud and cognitive services. Together, the companies is expected to design advanced blockchain-enabled payment solutions and is expected to introduce in the market. By leveraging R3's blockchain platform, Corda, Mphasis is expected to significantly expand its Payments and Trade Finance technology solutions portfolio.
- Oct-2020: IBM joined hands with R3, an enterprise software firm. Through this collaboration, the companies aimed to expand choice for customers by scaling blockchain technology and is expected to also deliver their highest levels of performance, data privacy, and compliance. Under this collaboration, R3 is expected to introduce the latest open beta program to bring R3's company blockchain platform, Corda Enterprise to IBM LinuxONE next month across the hybrid cloud, both the IBM Cloud and on-premises that is expected to be delivered through IBM Cloud Hyper Protect Services.
- Apr-2020: Oracle teamed up with HACERA, a leading enterprise-blockchain security products company. Under this collaboration, the Oracle Blockchain Platform is expected to integrate with DAML to allow users to focus on the business needs and specifications of the smart contracts.
Acquisitions and Mergers:
- Jun-2021: Accenture signed an agreement to acquire Umlaut, an engineering consulting and services firm. This acquisition is expected to scale Accenture’s deep engineering capabilities to assist enterprises in utilizing digital technologies such as artificial intelligence, 5G to transform the way they design, cloud, engineer and manufacture their products as well as embed sustainability.
Product Launches and Product Expansions:
- Jul-2021: Infosys released blockchain network. This network is expected to enhance the access, security, and efficiency of vital recordkeeping in Riverside County (USA).
- Jun-2021: SAP released a social network for businesses. This network is expected to create a forum around some of its key product lines, which is expected to assist in connecting companies and boosting visibility across complex supply chains.
- Mar-2021: Amazon Web Services unveiled an enhanced version of its Amazon Managed Blockchain service. The features of this version is expected to support the popular Ethereum blockchain platform. This new Ethereum support in Amazon Managed Blockchain is expected to allow AWS to support these use cases for its users.
- Sep-2020: Huawei introduced Blockchain Service 2.0, a blockchain-based cloud service. This updated service aimed to scale the project for commercial applications.
- Jul-2020: Oracle introduced a significant update to the Oracle Blockchain Platform Cloud Service. This service is expected to leverage the latest developments by the Hyperledger community in Hyperledger Fabric and the benefits of Oracle Cloud Infrastructure (OCI). Moreover, this service is expected to also evolve the transaction-based pricing model to an OCPU-hour plus storage metric that is expected to assist users with high transaction volumes to achieve minimized cost and more estimated pricing based on their processing & storage configuration instead of difficult-to-predict transaction volumes.
Geographical Expansions:
- Mar-2021: R3 expanded its geographical reach in Thailand through the renewal of its partnership with Bangkok Bank. Under this expansion, R3 is expected to witness a surge in its workforce, emphasize on R3’s commitment to the Thai market and its local partners.
Scope of the Study
Market Segments Covered in the Report:
By Component
- Tools
- Services
By Application
- Supply Chain Management
- Payments
- Identity Management
- Smart Contracts
- Governance, Risk, & Compliance Management
- Others
By Enterprise Size
- Large Enterprises
- Small & Medium Enterprises
By End User
- BFSI
- Retail & eCommerce
- Manufacturing
- Healthcare
- Government
- Energy & Utilities
- Others
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- IBM Corporation
- SAP SE
- Amazon Web Services, Inc. (Amazon.com)
- R3
- Oracle Corporation
- Huawei Technologies Co., Ltd.
- Hewlett Packard Enterprise
- Accenture plc
- Wipro Ltd.
- Infosys Limited
Unique Offerings from the Publisher
- Exhaustive coverage
- The highest number of market tables and figures
- Subscription-based model available
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- Assured post sales research support with 10% customization free
Table of Contents
Companies Mentioned
- IBM Corporation
- SAP SE
- Amazon Web Services, Inc. (Amazon.com)
- R3
- Oracle Corporation
- Huawei Technologies Co., Ltd.
- Hewlett Packard Enterprise
- Accenture plc
- Wipro Ltd.
- Infosys Limited
Methodology
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