Indian Crypto Exchange Market Outlook to 2027: Driven by Growing Adoption of Cryptocurrencies, Emergence of Blockchain and Nfts With High Liquidity, Proper Risk Management Facilitated by Indian Crypto Exchange Platforms

The publication titled “Indian Crypto Market Outlook to 2027: Driven by growing adoption of cryptocurrencies, emergence of blockchain and NFTs with high liquidity, proper risk management facilitated by Indian crypto exchange platforms” provides a comprehensive analysis of the crypto exchange industry in India. The report covers various aspects including crypto exchange industry market size on the basis of revenue, market overview, genesis of the market, market potential, value chain analysis of centralized and decentralized exchanges, ecosystem, business model of leading crypto exchanges, growth drivers, issues and challenges, SWOT analysis, major trends and developments, role of government, regulation and tax implications, investment analysis, merger and acquisitions in the last 3 years, segmentation by funding rounds, segmentation by type of institutional investors, segmentation by origin of funding source and impact of COVID-19.Insights on competitive landscape of crypto exchange industry, company profile of major players along-with cross comparison between leading crypto exchange platforms operating in the ecosystem on the basis of company overview, number of employees, revenue generated, number of registered users, country of origin, revenue model, fee structure, key features, strengths, weaknesses and recent developments is also covered in the report. The report also covers end user analysis of demand side highlighting target addressable market, service addressable market and service obtainable market of Indian Crypto Exchange Industry, domestic consumer demographics, consumer perception, preference for P2P Vs Regular Transaction model of cryptocurrencies, trends and developments in the end user preferences. Further report also focuses on the Indian Crypto Exchange Market Segmentation by By Origin of Company (Domestic and International), By Type of Transaction (Regular and Peer to Peer), By Geographic Region (Northern, Southern, Eastern and Western), By Age Group of Users (Below 20 years, Between 20-40 years, Between 40-60 years and Above 60 years), By Type of Cryptocurrency (Bitcoin, Ethereum, Cardano, Tether, Binance Coin-USD and Polygon). Indian Crypto Exchange Market report concludes with projections for the future of the industry including forecasted industry size by revenue by 2026, and analysts’ take on the future highlighting the major opportunities.

Indian Crypto Exchange Market Overview and Size

Indian crypto exchange market expanded with substantial growth in between 2016 and 2021 with massive expansion in the adoption of cryptocurrencies as the mode of investment due to rising industry valuation, an influx of new investors and the emergence of crypto exchange startups going beyond the typical crypto exchange model. The primary factors driving the market growth is the emergence of distributed ledger technology, rising traction in the area of digital investments by venture capitals and utilization of virtual currencies with integration of blockchain technology to attain decentralization, controlled, secured and efficient transactions. Cryptocurrency as a cross-border payment medium will make a big difference in the Indian market. Due to great remittance demand, it will drive the prosperity of digital currency growth in India for a long time. Since cross-border transactions traditionally carry high fee using bitcoin or other cryptocurrencies as a cross-border payment medium, Indians can save a large number of remittance fees. Surging adoption of cryptocurrencies post COVID-19 is also contributing in the growth of crypto exchange market by increasing their userbase.

In 2020, crypto exchange industry experienced a temporary downfall owing to the collaboration of confusion created by Indian government regarding the ban of cryptocurrencies by circulation of BCRODC Bill 2019 which made buyers skeptical fueled by Covid-19 in the beginning. Though the ban was lifted in March 2020 by Supreme Court, people were still in state of confusion about the current status of virtual currencies in India and with that spread of Covid-19 led to countrywide lockdown which was imposed in the mid-march, people became petrified to new circumstances and took time to adjust. During the initial stage of lockdown people started saving their assets to sail through the unforeseen condition which led to detachment from the crypto world. When lockdown continued for more than ten months people became accustomed to it and started looking ways for investments by end of 2020. A massive growth is seen in the year 2021 as cryptocurrency became an obvious choice of investment for a lot of users. Since they wanted to make money, and traditional businesses were suffering during covid. Covid that way, has helped the IT sector as well as the digital money aspect. Crypto jumped because of the money that flooded the markets, and the stimulus that was given to the economies due to shutdowns, which also lead to K-Shaped recovery.

Indian Crypto Exchange Market Segmentation

By Origin of Company (Domestic and International):

Domestic Crypto exchange companiesaccounted for the highest market share as compared to the international crypto exchange platforms on the basis of revenue generated in the year FY’22. Attributed to the ease of trading through domestic platforms as compared to foreign companies where for trading direct monetary fund’s cannot be used.

By Type of Transaction (Regular and Peer to Peer):

Regular method of transaction for cryptocurrencies accounts for the highest market share as compared to the peer-to-peer transaction in the year FY’22. Regular mode of transaction is more preferred by the traders as they provide anonymity and privacy protection with safe and secure transaction.

By Geographic Region (Northern, Southern, Eastern and Western):

Southern and western region dominated the Indian crypto exchange market with a combined share of ~XX% on the basis of revenue contribution in FY’22. Attributed to the high literacy rate in these regions resulting in aware, educated and tech savvy youth driving the crypto market.

By Age Group of Users (Below 20 years, between 20-40 years, between 40-60 years and Above 60 years):

Indian who are most likely interested in trading and cryptocurrency market are aged between 20-40 years accounting for highest market share in FY’22. With an easy access to internet, this tech savvy generation has started to take initiatives to have a strong understanding of cryptocurrency market and its benefits.

By Type of Cryptocurrency (Bitcoin, Ethereum, Cardano, Tether, Binance Coin-USD and Polygon):

The Bitcoin has maximum dominance in the cryptocurrency market with highest market share & market capitalization in 2021. Owing to the popularity of bitcoin among users and increased participation from women in bitcoin investments drives the dominance of bitcoin in FY’22

Competitive Landscape in Indian Crypto Exchange Market

Indian Crypto Exchange market is concentrated among 12-15 players. Several crypto exchange startups in India are gaining traction due to the growing appetite for underinvested crypto assets ranging from the most popular Bitcoin and Ethereum to not-so-familiar tokens like dogecoin, ripple, litecoin and more. CoinDCX became thefirst crypto unicorn in Indiavalued at $1.1 Billion in 2021; it has integration with international exchanges such as Huobi, Binance. WazirX is leading crypto exchanges in India in terms of crypto transactions (24 hrs) and weekly visits. Crypto Exchange Platforms in India compete on the basis of user-friendly interface, easy and quick KYC norms, advertisement, wide range of investment options they offer and low transaction fees. One of the major competition parameters is the privacy protection, high liquidity, funding and service diversification such as wallet options, using virtual currencies as mode of payment for buying goods/services instead of fiat currency provided by the crypto exchange platforms to their users. The ease of trading and user-friendly interface of Indian crypto exchange platforms which are built in accordance to the requirement of country resident attributes for the highest market share of domestic exchanges in India as compared to the international exchanges. However, in coming years despite the regulatory uncertainty and the speculated ban on cryptos in general, international crypto exchanges are eyeing a piece of the Indian crypto market, either through independent operations or through acquisitions. In essence, the crypto industry has a lot more potential to flourish across the country if its pain points can be resolved fast, paving the path for a robust, decentralized financial ecosystem. With the crypto exchanges and other companies coming together to lobby for clarity and regulation, India may soon witness the introduction of a new asset class and a decentralized innovation structure powered by crypto.

Indian Crypto Exchange Market Future Outlook and Projections

Indian crypto exchange market is expected to expand at a CAGR of 30% in between FY’22 and FY’27on the basis of revenue generated. It is anticipated that crypto exchange industry will grow at a substantial rate owing to factors such as transparency in financial payment which is expected to propel the growth of the cryptocurrencies market in the coming years. Digital currencies are created using blockchain technology, which allows multiple entities to keep copies of historic transactions, that means it is not controlled by one central source. This blockchain technology makes the transaction process of cryptocurrencies a lot more transparent and secure. In the initial stages of the introduction of this technology in the country, the growth was a lot slower as the customers and the users weren’t aware of it. But in the coming years with the initiatives taken by Indian crypto exchange platforms to create awareness about cryptocurrency in the country residents via courses and sessions will lead to ever-increasing user base. With India on the path of proper crypto regulation in coming years ahead, the market will witness surplus funding from venture capitals and angel investors, with major players giving out services regarding the cryptocurrency. For example, Tata Consultancy services (TCS) launched a product called as Quartz Smart Solution for crypto for the banking institutions who are dealing in cryptocurrencies. The market is poised to gain significant traction from increasing women participation in the crypto world.

Key Segments Covered in Indian Crypto Exchange Industry

By Origin of Company

• Domestic
• International

By Type of Transaction

• Regular
• Peer to Peer

By Geographic Region

• Northern
• Southern
• Eastern
• Western

By Age Group of Users

• Below 20 years
• Between 20-40 years
• Between 40-60 years
• Above 60 years

By Type of Cryptocurrency

• Bitcoin
• Ethereum
• Cardano
• Tether
• Binance Coin-USD
• Polygon
• Segmentation of Funding rounds by - Seed Stage, Early Stage, Growth Stage,2019-2021
• Segmentation of funding, by type of institutional investors - VC & PE Funds and Angel Investors,2019-2021
• Segmentation of Funding by Origin of Funding Source, Entry of International Exchanges,2019-2021
• Indian Crypto Demand Side: End User Analysis
• Target Addressable Market, Service Addressable Market and Service Obtainable market in the Indian Crypto Exchange Industry

Key Target Audience

• Crypto Exchange Platforms
• Investors such Venture Capitals and Angel Investors
• Traders
• Banking Institutions
• Regulatory Bodies
• Potential Crypto users

Time Period Captured in the Report:

• Historical Period: 2016-2021
• Forecast Period: 2022-2026F

Indian Crypto Exchange Industry Players/Ecosystem

Indian Crypto Exchanges

• CoinDCX
• ZebPay
• WazirX
• CoinSwitch Kuber
• Unocoin
• BuyUCoin
• Bitbns
• Giottus
• Flitpay
• Belfrics
• PocketBits.in
• PCEX Member

Non-Indian Exchanges

• Binance
• Okx
• Coinbase
• Kraken
• Bitfinex
• Bitstamp
• Vauld
• Coinmama
• Coinstore

Key Topics Covered in the Report

• Overview and Genesis of Indian Crypto Exchange Market
• Market Potential of Indian Crypto Exchange Market
• Ecosystem of Major Entities in Cryptocurrency Exchange Market
• Value Chain Analysis of Centralized Exchanges
• Value Chain Analysis of Decentralized Exchanges
• Business Models of Major Indian Crypto Exchange
• Indian Crypto Exchange Market Size on the basis of Revenue and Total Transaction Value
• Indian Crypto Exchange Market Segmentation (By Origin of Company, By Type of Transaction, By Geographic Region, By Age Group of Users, By Type of Cryptocurrency)
• Domestic Consumer Demographics: Age group, Gender and Occupational Domains
• Consumer Perception: User-Interface, Customer Experience and Delighters
• Preference for P2P Vs Regular Transaction model for Cryptocurrencies in India
• Trends and Developments in the End User Preferences in the last 5 years
• Growth Drivers of the Indian Crypto Exchange Market
• Issues and Challenges
• Role of Government in the Indian Crypto Exchange Market
• Regulations and Tax Implications in the Indian Crypto Exchange Market
• SWOT Analysis
• Start-Ups (Split by Year of Formation) across Indian Crypto Exchange Market and Other Ecosystem Players
• Segmentation of Funding rounds by - Seed Stage, Early Stage, Growth Stage
• Segmentation of funding, by type of institutional investors - VC & PE Funds and Angel Investors
• Segmentation of Funding by Origin of Funding Source, Entry of International Exchanges
• Investment Analysis of the Indian Crypto Exchange Market, Mergers and Acquisitions in the last 3 years within the Indian Crypto Exchange Market
• Cross comparison of major players in the Indian Crypto Exchange Market (Year of Establishment, Number of Employees, Revenue Generated, Number of Registered users, Country of Origin)
• Company Profile of leading Indian Crypto Exchange Platforms (Company Snapshot, About the Exchange, Revenue model, Fee structure, Key Features, Strength, Weakness, Recent Developments and Key Takeaways)
• Impact of Covid-19 on the Indian Crypto Exchange Market
• Target Addressable Market, Service Addressable Market and Service Obtainable Market in Indian Crypto Exchange Industry
• Analyst Recommendations
• Industry Speaks

 

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