Smart Contracts Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The smart contracts market size has grown exponentially in recent years. It will grow from $2.63 billion in 2024 to $3.21 billion in 2025 at a compound annual growth rate (CAGR) of 22%. The growth in the historic period can be attributed to decentralized applications, increased security concerns, rise of initial coin offerings, regulatory compliance needs, interoperability initiatives.

The smart contracts market size is expected to see exponential growth in the next few years. It will grow to $7.45 billion in 2029 at a compound annual growth rate (CAGR) of 23.4%. The growth in the forecast period can be attributed to cross-chain compatibility, NFT ecosystem expansion, quantum computing impact, energy efficiency concerns, global standards development, standardization of smart contract templates. Major trends in the forecast period include integration with traditional legal systems, decentralized finance (defi) integration, oracles for real-world data integration, NFTs and smart contracts in the creative industry, integration with internet of things (IoT).

The Banking, Financial Services, and Insurance (BFSI) sectors are undergoing significant digital transformations. This shift involves integrating digital technologies to enhance customer experiences, streamline operations, and boost competitiveness. In these industries, the focus is on process automation and efficiency, where smart contracts play a crucial role. These contracts automate transactions, claims, and settlements based on predetermined conditions, reducing manual intervention and paperwork. Notably, a report by Alkami Technology Inc. in May 2023 revealed a substantial increase in digital transformation investments by mid-size banks and credit unions in fiscal year 2022, reaching nearly $425,000 per $1 billion in assets compared to $200,000 per $1 billion in assets in fiscal 2021. Additionally, Peer-to-peer (P2P) payments adoption among digital banking users rose from 12% to 25% in 2022.

The surge in demand for Internet of Things (IoT) devices is expected to drive the growth of the smart contracts market. IoT devices, equipped with sensors and software, create networks to exchange data over the internet. Smart contracts play a crucial role in verifying and securing data integrity from these IoT sensors, preventing unauthorized alterations. According to GSMA Intelligence's August 2022 findings, the number of IoT connections is projected to reach 23.3 billion by 2025, a significant increase from 15.1 billion in 2021. Consequently, the escalating demand for IoT devices is a key driver propelling the growth of the smart contracts market.

Prominent companies in the smart contract market prioritize the development of innovative, user-friendly platforms such as Chainlink Functions to ensure robust customer service. Chainlink Functions, a self-service and serverless cloud computing platform, is a focal point for these companies. It empowers developers to design and deploy applications without the complexities of infrastructure management. As an illustration, in March 2023, Chainlink, a UK-based provider facilitating real-world data integration into blockchain smart contracts, unveiled Chainlink Functions. This serverless platform enables developers to connect their smart contracts and decentralized applications (dApps) to Web 2 application programming interfaces swiftly. The platform's capability to execute customizable computations on Web 2 APIs within minutes supports well-known programming languages such as JavaScript, simplifying developers' entry into the Web3 domain.

In May 2024, DocuSign, a US-based software company, acquired Lexion for $165 million. This acquisition enables DocuSign to enhance its digital transaction management capabilities and broaden its service offerings to better meet customer needs. Lexion, a US-based technology company, specializes in AI-powered contract management solutions, and its integration with DocuSign's platform will improve contract automation, streamline workflows, and leverage AI for better contract analysis and management. This move underscores DocuSign's commitment to expanding its capabilities in the digital transaction space and providing more efficient and innovative solutions to its clients.

Major companies operating in the smart contracts market report are Amazon.com Inc., International Business Machines Corporation, Oracle Corporation, Tata Consultancy Services Limited, Infosys Limited, ELEKS Ltd., Cygnet Infotech Pvt Ltd., ScienceSoft USA Corporation, R3 Corda, Dotsquares Ltd., Alchemy Insights Inc., Apriorit Inc., AVA Labs Inc., Quytech, ZirconTech LLC, SoluLab Inc., Innowise Group, Cubix, PrimaFelicitas Ltd., Sumatosoft, Infograins Software Solutions Pvt Ltd., Idealogic, Quant Network Limited, Monax Industries Ltd., Vention, Evercode Lab, EvaCodes, Second State Inc., Pragmatic DLT Inc., Labrys.

North America was the largest region in the smart contracts market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the smart contracts market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the smart contracts market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The smart contracts market consists of revenues earned by entities by providing services such as automating operations, streamlining entire workflows, accelerating procedures, and ensuring security. The market value includes the value of related goods sold by the service provider or included within the service offering. The smart contracts market also includes sales of powerful processors, information reading devices, and ample memory. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

Smart contracts are self-executing agreements with the terms encoded directly into code, leveraging blockchain technology to automatically execute and enforce contract terms upon meeting predefined conditions or triggers. They offer a secure infrastructure for automation, reducing counterparty risk, enhancing efficiency, and providing transparency in processes.

The primary types of smart contracts include smart legal contracts, decentralized autonomous organizations (DAO), application logic contracts (ALC), and distributed applications (DApps). Smart legal contracts encode legal terms and conditions for automatic execution. Technologies such as Ethereum, Namecoin, Ripple, Rootstock (RSK), and others are utilized across enterprises, including small and medium enterprises (SMEs) and large enterprises. These technologies find applications in various sectors, including banking, financial services, insurance (BFSI), retail, healthcare, real estate, logistics, and others.

The smart contracts market research report is one of a series of new reports that provides smart contracts market statistics, including smart contracts industry global market size, regional shares, competitors with a smart contracts market share, detailed smart contracts market segments, market trends and opportunities, and any further data you may need to thrive in the smart contracts industry. This smart contracts market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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