Smart contracts are digital programs that can be programmed to automatically execute specific actions when predetermined conditions are met. For instance, a smart contract could be encoded to automatically transfer funds from one account to another when a specific date is reached or when a particular event occurs, such as a product being delivered, or a service being completed. By automating contract execution in this way, smart contracts can reduce the need for manual intervention, increasing efficiency and reducing the risk of errors and disputes. Smart contracts can also automate a wide range of other business processes, such as insurance claims processing, real estate transactions, and even voting systems.
Increase in adoption of blockchain technology and increase in demand for smart contracts in educational institutions is boosting the growth of the global smart contracts market. In addition, increase in demand for automation and digital transformation technology is positively impacts growth of the smart contracts market. However, lack of scalability and standardization and presence of legal and regulatory uncertainties is hampering the smart contracts market growth. On the contrary, increasing adoption of various applications in industries is expected to offer remunerative opportunities for expansion of the smart contracts market during the forecast period.
The smart contracts market is segmented on the basis of by contract type, platform, enterprise size, end-user, and region. On the basis of the contract type, the smart contracts market is segmented into smart legal contracts, decentralized autonomous organizations (DAO), application logic contracts (ALC), and distributed application (DApp). On the basis of platform, the global smart contracts market is segmented into Ethereum, Cardano, BNB Chain, Polkadot, and others. On the basis of enterprise size, the market is bifurcated into large enterprises and SMEs. By end-user, it is classified into BFSI, retail, healthcare, real estate, logistics, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players that operate in the smart contracts market are ScienceSoft USA Corporation, innowise group, IBM Corporation, Tata Consultancy Services, BlockCypher, Blockstream Corporation Inc., Monax Industries Limited, BitPay, Inc., Chain, Inc., and Coinbase. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry
Increase in adoption of blockchain technology and increase in demand for smart contracts in educational institutions is boosting the growth of the global smart contracts market. In addition, increase in demand for automation and digital transformation technology is positively impacts growth of the smart contracts market. However, lack of scalability and standardization and presence of legal and regulatory uncertainties is hampering the smart contracts market growth. On the contrary, increasing adoption of various applications in industries is expected to offer remunerative opportunities for expansion of the smart contracts market during the forecast period.
The smart contracts market is segmented on the basis of by contract type, platform, enterprise size, end-user, and region. On the basis of the contract type, the smart contracts market is segmented into smart legal contracts, decentralized autonomous organizations (DAO), application logic contracts (ALC), and distributed application (DApp). On the basis of platform, the global smart contracts market is segmented into Ethereum, Cardano, BNB Chain, Polkadot, and others. On the basis of enterprise size, the market is bifurcated into large enterprises and SMEs. By end-user, it is classified into BFSI, retail, healthcare, real estate, logistics, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players that operate in the smart contracts market are ScienceSoft USA Corporation, innowise group, IBM Corporation, Tata Consultancy Services, BlockCypher, Blockstream Corporation Inc., Monax Industries Limited, BitPay, Inc., Chain, Inc., and Coinbase. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the global smart contracts market forecast along with the current and future trends to explain the imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analysis on global smart contracts market trend is provided in the report.
- The Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The quantitative analysis of the market from 2022 to 2032 is provided to determine the market potential.
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- Product Life Cycles
- Market share analysis of players by products/segments
- Key player details (including location, contact details, supplier/vendor network etc. in excel format)
- Market share analysis of players at global/region/country level
- SWOT Analysis
- Volume Market Size and Forecast
Key Market Segments
By Contract Type
- Smart Legal Contract
- Decentralized Autonomous Organizations (DAO)
- Enterprise Size Logic Contracts (ALC)
- Distributed Enterprise Size (DApp)
By Platform
- Ethereum
- Bitcoin
- Sidechains
- NXT
- Others
By Enterprise Size
- Large Enterprise
- Small and Medium-sized Enterprises
By End User
- BFSI
- Retail
- Healthcare
- Real Estate
- Logistics
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
- Key Market Players
- IBM Corporation
- BlockCypher
- Coinbase
- Monax Industries Limited
- Chain, Inc.
- Innowise Group
- ScienceSoft USA Corporation
- BitPay, Inc.
- Blockstream Corporation Inc.
- Tata Consultancy Services
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: SMART CONTRACTS MARKET, BY CONTRACT TYPE
CHAPTER 5: SMART CONTRACTS MARKET, BY PLATFORM
CHAPTER 6: SMART CONTRACTS MARKET, BY ENTERPRISE SIZE
CHAPTER 7: SMART CONTRACTS MARKET, BY END USER
CHAPTER 8: SMART CONTRACTS MARKET, BY REGION
CHAPTER 9: COMPETITIVE LANDSCAPE
CHAPTER 10: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the smart contracts market was valued at $192.69 million in 2022, and is estimated to reach $2.5 billion by 2032, growing at a CAGR of 29.6% from 2023 to 2032.Smart contracts are self-executing digital contracts that allow two or more parties to transact with each other without the need for intermediaries like banks or other financial institutions. These contracts are built on blockchain technology, which provides a secure and decentralized platform for their execution. One of the key benefits of smart contracts is that they can help to automate complex business processes, thereby reducing costs and increasing efficiency. They can also help to ensure the integrity and transparency of transactions, as all parties can view the terms of the contract and track its execution on the blockchain.
Key factors driving the growth of the smart contracts market include an increase in adoption of blockchain technology, increase in demand for smart contracts in educational institutions, and increase in demand for automation and digital transformation technology. Digitization is the process of converting data or information into a digital format with the adoption of advanced technology. It plays an important role in the industrial sector owing to a growing need among service providers to provide enhanced customer services and to improve the security of the customer. Furthermore, smart contracts also help financial institutes to offer digital services to their customers and save time on financial consulting, which propels the growth of the market. In addition, the rise in demand for digital transformation technology in financial institutions and the growing dependency of various banks on smart contracts solutions drives the growth of the market. In addition, market players across the globe have adopted various advanced technologies such as blockchain technology, big data, and artificial intelligence to increase productivity with minimal resource utilized, which drives the growth of the market.
The market also offers growth opportunities to the key players in the market. Increasing adoption of various applications in industries such as supply chain, banking, government, insurance, and real estate drives the market growth. In addition, with rising complexity and competition in the smart contracts market, the demand for industry-specific solutions increased to meet the goals of the companies and technology-based solutions are helping industries to enhance their security and upsurge their revenue opportunity, which is driving the growth of the market. Furthermore, IoT and blockchain technology assist industries at various stages of risk management process ranging from identifying risk exposure, measuring, estimating, to assessing its effects. Moreover, increasing investments in smart contract application offer the potential to transform the area of automation for time-consuming, mundane processes, and offer a far more streamlined and personalized customer experience, which is enhancing the growth of the market. For instance, in August 2023, SphereX bags launched security solution, SphereX Protect with the $8.2million seed funding was backed by investors such as Aleph, Pillar VC, Fabric Ventures, Mensch Capital Partners, along with other angel investors, such strategic developments are expected to provide lucrative opportunity for the growth of the market.
The smart contracts market is segmented on the basis of contract type, platform, enterprise size, end user, and region. On the basis of the contract type, the smart contracts market is categorized into smart legal contracts, decentralized autonomous organizations (DAO), application logic contracts (ALC), and distributed applications (DApp). On the basis of platform, the smart contracts market is segregated into Ethereum, Bitcoin, Sidechains, NXT, and others. On the basis of enterprise size, the market is bifurcated into large enterprises and SMEs. By end user, it is classified into BFSI, retail, healthcare, real estate, logistics, and others. Region-wise, it is analyzed across North America (the U.S., Canada), Europe (the UK, Germany, France, Spain, Italy, and the rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East and Africa).
The key players profiled in the study include ScienceSoft USA Corporation, innowise group, IBM Corporation, Tata Consultancy Services, BlockCypher, Blockstream Corporation Inc., Monax Industries Limited, BitPay, Inc., Chain, Inc., and Coinbase. The players in the market have been actively engaged in the adoption of various strategies such as acquisition, and partnership to remain competitive and gain advantage over the competitors in the market. For instance, in October 2020, Coinbase partnered with Google Cloud to better serve the growing Web3 ecosystem and its developers.
Key Market Insights
By contract type, the decentralized autonomous organizations (DAO) segment was the highest revenue contributor to the market and is estimated to reach $489.43 million by 2032, with a CAGR of 23.5%. However, the distributed application (DApp) segment is estimated to be the fastest-growing segment with a CAGR of 33.4% during the forecast period.By platform, the Ethereum segment dominated the global market and is estimated to reach $601.51 million by 2032, with a CAGR of 25.9%. However, the NXT segment is expected to be the fastest-growing segment with a CAGR 33.4% during the smart contracts market forecast.
Based on region, North America was the highest revenue contributor, accounting for $74.88 million in 2022, and is estimated to reach $834.72 million by 2032, with a CAGR of 27.5%.
Companies Mentioned
- IBM Corporation
- BlockCypher
- Coinbase
- Monax Industries Limited
- Chain, Inc.
- Innowise Group
- ScienceSoft USA Corporation
- BitPay, Inc.
- Blockstream Corporation Inc.
- Tata Consultancy Services
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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