Smart Contracts Global Market Report 2024

The smart contracts market size has grown exponentially in recent years. It will grow from $2.14 billion in 2023 to $2.63 billion in 2024 at a compound annual growth rate (CAGR) of 23.1%. The growth in the historic period can be attributed to the rise of decentralized applications, increased security concerns, the emergence of initial coin offerings, the need for regulatory compliance, and interoperability initiatives.

The smart contracts market size is expected to see exponential growth in the next few years. It will grow to $5.99 billion in 2028 at a compound annual growth rate (CAGR) of 22.8%. The growth in the forecast period can be attributed to cross-chain compatibility, the expansion of the NFT ecosystem, the impact of quantum computing, concerns about energy efficiency, the development of global standards, and the 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, the use of NFTs and smart contracts in the creative industry, and integration with the 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.

The market's growth potential faces a hurdle due to the considerable maintenance expenses associated with snowmobile ownership. Maintaining snowmobiles incurs ownership costs that may dissuade potential consumers from purchasing or using these vehicles. According to data from Social Finance, Inc. in August 2023, the average annual expenditure on snowmobile maintenance and repairs ranged between $200 and $500 for owners. This expense stands notably high when compared to the maintenance costs of other vehicles such as cars, contributing to hindrances in the expansion of the snowmobile 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 2.0 application programming interfaces swiftly. The platform's capability to execute customizable computations on Web 2.0 APIs within minutes supports well-known programming languages such as JavaScript, simplifying developers' entry into the Web3 domain.

In May 2021, DocuSign Inc., a company specializing in electronic document management services based in the United States, completed the acquisition of Clause Inc. The financial details of this acquisition were not disclosed. This strategic move by DocuSign Inc. is aimed at broadening its distribution network and enhancing its agreement cloud platform by incorporating digital contract technologies. The integration of Clause Inc.'s connected contracting technology and smart contract solutions is anticipated to enable DocuSign Inc. to convert digital contracts into interactive and operational documents, thereby expanding its offerings in this domain. Clause Inc., based in the United States, is known for its expertise in providing connected contracting technology and smart contract solutions.

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 2023. 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.

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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