The Global Smart Contracts Market size is expected to reach $15.5 billion by 2030, rising at a market growth of 50% CAGR during the forecast period.
Security and transparency are critical in real estate transactions. Smart contracts, built on blockchain technology, offer tamper-resistant and transparent record-keeping. Consequently, the real estate segment would generate approximately 13.08% share of the market by 2030. By giving property transactions and ownership documents an unchangeable and provable history of ownership, the blockchain lowers the possibility of fraud and disputes. As a result, there will be a rise in demand in the segment.
Smart contracts are agreements in which the provisions are written directly into code and are capable of self-execution. A decentralized and distributed ledger known as a blockchain records transactions across a network of computers. These contracts are executed on a blockchain. The foundational framework for the secure and transparent implementation of smart contracts is blockchain. Thus, these aspects will help expand the market. Moreover, Traditional contracts often involve intermediaries, such as banks, legal entities, or notaries, to validate and enforce agreements. Smart contracts operate on a decentralized blockchain, enabling direct peer-to-peer interactions without intermediaries. This not only speeds up processes but also reduces associated costs. Smart contracts automatically execute predefined terms when specific conditions are met. These factors will pose lucrative growth prospects for the market.
However, Immutability means that its code cannot be altered once a smart contract is deployed. If there are bugs or security vulnerabilities in the code, correcting them becomes a challenging task. This inflexibility may expose the smart contract to potential exploits, leading to financial losses or disruptions. Smart contracts are typically written by humans, and errors in the code can occur during the development phase. Thus, the smart contracts market will witness decreased demand in the coming years.
Security and transparency are critical in real estate transactions. Smart contracts, built on blockchain technology, offer tamper-resistant and transparent record-keeping. Consequently, the real estate segment would generate approximately 13.08% share of the market by 2030. By giving property transactions and ownership documents an unchangeable and provable history of ownership, the blockchain lowers the possibility of fraud and disputes. As a result, there will be a rise in demand in the segment.
Smart contracts are agreements in which the provisions are written directly into code and are capable of self-execution. A decentralized and distributed ledger known as a blockchain records transactions across a network of computers. These contracts are executed on a blockchain. The foundational framework for the secure and transparent implementation of smart contracts is blockchain. Thus, these aspects will help expand the market. Moreover, Traditional contracts often involve intermediaries, such as banks, legal entities, or notaries, to validate and enforce agreements. Smart contracts operate on a decentralized blockchain, enabling direct peer-to-peer interactions without intermediaries. This not only speeds up processes but also reduces associated costs. Smart contracts automatically execute predefined terms when specific conditions are met. These factors will pose lucrative growth prospects for the market.
However, Immutability means that its code cannot be altered once a smart contract is deployed. If there are bugs or security vulnerabilities in the code, correcting them becomes a challenging task. This inflexibility may expose the smart contract to potential exploits, leading to financial losses or disruptions. Smart contracts are typically written by humans, and errors in the code can occur during the development phase. Thus, the smart contracts market will witness decreased demand in the coming years.
By Enterprise Size Analysis
Based on enterprise size, the market is divided into large enterprises and small & medium enterprises. The large enterprises segment recorded the maximum revenue share in the market in 2022. Large enterprises often have intricate and multifaceted business processes that involve numerous stakeholders, departments, and regulatory considerations. Large businesses looking to improve efficiency in intricate workflows find smart contracts particularly appealing due to their capacity to automate and streamline procedures. These organizations can leverage smart contracts to optimize supply chain management, procurement, compliance, and other intricate processes. These factors will boost the demand in the segment.By Blockchain Analysis
On the basis of blockchain type, the market is divided into public, private, and hybrid. In 2022, the hybrid segment witnessed a substantial revenue share in the market. The hybrid approach is often adopted to address limitations of on-chain smart contracts, such as scalability and privacy concerns. By combining on-chain execution with off-chain processing, hybrid smart contracts aim to balance the transparency and security of on-chain operations and the scalability and efficiency of off-chain components. As a result, these aspects will pose lucrative growth prospects for the segment.By Platform Analysis
Based on platform, the market is segmented into Ethereum, Cardano, BNB chain, Polkadot, and others. The Ethereum segment held the largest revenue share in the market in 2022. Ethereum is widely recognized as the pioneer in blockchain platforms for smart contracts. Because of its strong and secure architecture, developers and businesses wishing to implement smart contracts and decentralized apps use it. Ethereum has played a central role in the explosive growth of decentralized finance (DeFi) applications. These factors will boost the demand in the segment.By Type Analysis
By type, the market is segmented into decentralized autonomous organizations (DAO), application logic contracts, and smart legal contracts. In 2022, the application logic contracts segment acquired a considerable revenue share in the market. As more decentralized applications are being developed, the demand for smart contracts that govern their logic is increasing. Developers are creating contracts that handle various functionalities, such as token transfers, governance mechanisms, and complex business processes. Owing to these factors, there will be enhanced growth in the segment.By End-Use Analysis
On the basis of end-use, the market is segmented into BFSI, logistics, healthcare, retail, real estate, and others. The BFSI segment recorded the maximum revenue share in the market in 2022. The BFSI industry has shown interest in leveraging smart contracts for lending and borrowing activities. Smart contracts can facilitate the creation and execution of programmable lending agreements, including terms, interest rates, and repayment schedules. Decentralized finance (DeFi) platforms, which often utilize smart contracts, have gained popularity for offering lending and borrowing services without traditional intermediaries. These aspects will pose lucrative growth prospects for the segment.By Regional Analysis
By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific segment acquired a considerable revenue share in the market. With nations like China, Japan, South Korea, and Singapore spearheading digital transformation projects, the Asia Pacific area has been at the forefront of the rapid adoption of new technologies. This eagerness to embrace new technologies has contributed to the increased adoption of smart contracts as businesses seek more efficient and secure transactions. These factors will boost the demand in the segment.Recent Strategies Deployed in the Market
- Jul-2023: ScienceSoft USA Corporation has extended its presence by opening a new office in the Kingdom of Saudi Arabia (KSA). As part of expansion, the company seeks to digitally revolutionize the fundamental business operations of Gulf-based companies, assisting them in gaining a competitive advantage in cutting-edge technologies such as AI and blockchain.
- Oct-2022: Coinbase Global, Inc. entered into partnership with Google Cloud a subsidiary of Google LLC, a multinational technology company. Under this partnership, Google Cloud aims to enable its customers, to pay for its cloud services via cryptocurrencies with the help of Coinbase commerce, a global cryptocurrency payment merchant.
- May-2022: Oracle Corporation has expanded the capabilities of Oracle Blockchain Platform by incorporating support for Non-Fungible Tokens (NFTs). As part of expansion, Oracle has launched the Blockchain App Builder for Oracle Blockchain Platform v22.2.1, featuring support for non-fungible tokens based on the ERC-721 specification.
- Mar-2021: Amazon Web Services, Inc. a subsidiary of Amazon.com, Inc. has unveiled Ethereum on Amazon Managed Blockchain. Under this launch, Amazon makes it easy for customers to quickly create Ethereum nodes. These nodes can connect to both the public Ethereum main network and test networks like Rinkeby and Ropsten.
- Oct-2020: IBM Corporation entered into collaboration with R3 HoldCo LLC, a blockchain software company. Through this collaboration, IBM aims to broaden options for clients looking to scale blockchain technology, ensuring top-tier performance, compliance, and data privacy. Furthermore, R3 has unveiled a new open beta program to introduce its enterprise blockchain platform, Corda Enterprise, to IBM LinuxONE.
List of Key Companies Profiled
- ScienceSoft USA Corporation
- Innowise Sp. z o.o
- 4soft
- Algorand Foundation Ltd.
- IBM Corporation
- TATA Consultancy Services Limited
- Oracle Corporation
- Infosys Limited
- Amazon.com, Inc.
- Coinbase Global, Inc.
Market Report Segmentation
By Enterprise Size
- Large Enterprises
- Small & Medium Enterprises
By Blockchain Type
- Public
- Private
- Hybrid
By Platform
- Ethereum
- Cardano
- BNB Chain
- Polkadot
- Others
By Type
- Decentralized Autonomous Organizations (DAO)
- Application Logic Contracts
- Smart Legal Contracts
By End-Use
- BFSI
- Healthcare
- Logistics
- Real Estate
- Retail
- 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
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Global Smart Contracts Market by Enterprise Size
Chapter 5. Global Smart Contracts Market by Blockchain Type
Chapter 6. Global Smart Contracts Market by Platform
Chapter 7. Global Smart Contracts Market by Type
Chapter 8. Global Smart Contracts Market by End-Use
Chapter 9. Global Smart Contracts Market by Region
Chapter 10. Company Profiles
Companies Mentioned
- ScienceSoft USA Corporation
- Innowise Sp. z o.o
- 4soft
- Algorand Foundation Ltd.
- IBM Corporation
- TATA Consultancy Services Limited
- Oracle Corporation
- Infosys Limited
- Amazon.com, Inc.
- Coinbase Global, Inc.
Methodology
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