Smart Contracts Market

Smart Contracts Market Size (2022 - 2027)

The global Smart Contracts market is expected to grow at a CAGR of 22.5% from $110 million in 2021 to $397.4 million by 2027.

A smart contract is a self-executing agreement between a buyer and a seller that is written straight into lines of code. A distributed and decentralized Blockchain network contains the code and agreements included therein. The written code can govern execution, and transactions are traceable and irrevocable. The Blockchain processes smart contract transactions, which means they can be delivered automatically without the assistance of a third party.

Smart contracts have a wide range of applications, including financial derivatives, insurance premiums, property law, breach contracts, credit enforcement, financial services, crowdfunding agreements, and legal processes. Because smart contracts are kept on Blockchain, it is incredibly difficult for the system to be hacked because it would take massive computer power to take down the entire network.

Smart contracts include several fundamental qualities, including autonomy, decentralization, and self-sufficiency. Smart contact can assist in resolving issues of mistrust between two or more persons, as well as between business partners. Smart contracts are used in supply chain management because they can track ownership rights as products travel through the system. They can also be used to secure copyrighted content. Individuals can also own their digital identity, which includes digital assets and data, via smart contracts.

Market Drivers

The usage of smart contracts in automation comprises self-executing computer programmes that allow for the automation of processes and payments to increase efficiency, which is fueling the global smart contracts market. Furthermore, the global smart contract market is benefiting from increased government involvement in blockchain technology. Smart contracts eliminate errors that occur as a result of the manual filling out of several forms. Because of the aforementioned advantages, demand for smart contracts is rapidly increasing, hence boosting the worldwide smart contract market's growth. The increasing use of smart contracts across a variety of industries, including banks, government, healthcare, financial services firms, and supply chains, is likely to drive market expansion. Furthermore, due to privacy concerns, the documents would only be accessible to a limited number of people. Smart contracts can also be used to research securely and confidentially.

Market Restraints

Although blockchain technology is used in smart contracts, the lack of standardization and interchangeability of blockchain technology makes establishing smart contracts difficult, and this aspect is expected to limit the global smart contracts market's growth. Furthermore, because contracts contain phrases that aren't always understood, smart contracts aren't always capable of managing perplexing terms and conditions.

SMART CONTRACTS MARKET REPORT COVERAGE:

Market Segmentation

Smart Contracts Market – By Platform:

• Bitcoin
• Ethereum
• NXT
• Sidechains

Ethereum has the largest market share of 36.28% in 2020, with a market value of $52.59 million, and is predicted to grow at a long-term CAGR of 23.25 % throughout the forecast period. With a market valuation of $42.23 million in 2020, Bitcoin was the second-largest market.

Smart Contracts Market – By Technology:

• Ethereum
• Namecoin
• Ripple
• Rootstock (RSK)
• Others

Ethereum has the largest market share of 42.99% in 2020, with a market value of $62.32 million, and is predicted to grow at a long-term CAGR of 25.25% throughout the forecast period. With a market value of $40.38 million in 2020, Rootstock (RSK) was the second-largest market.

Smart Contracts Market – By Application:

• Automobile
• Government
• Supply Chain Management
• Others

The government segment held 36.66% of the market in 2020, with a market value of $53.14 million, and is expected to grow at a long-term CAGR of 25.71% over the forecast period. In 2020, Supply Chain Management was the second-largest market, with a market value of $37.06 million.

Smart Contracts Market – By Region:

1. North America
2. Europe
3. Latin America
4. Asia Pacific
5. Middle East & Africa

North America, with a market value of $59.35 million in 2020 and a 40.94% market share, is predicted to grow at a long-term CAGR of 23.53% over the forecast period. With a value of $40.28 million in 2020, Europe was the second-largest market.

Market Leader

Blockstream is the leading company in the global smart contracts market.

Key Players

1. Monax (UK)
2. Monetas (Switzerland)
3. Coinbase (US)
4. Coinify (US)
5. Bitpay (US)
6. Bitfinex (British Virgin Islands)
7. Binance (Cayman Islands)
8. CoinDCX (India)
9. SoluLab (India)
10. GoCoin (Singapore)

Recent Developments

• Coinbase Wallet will soon be able to support NFTs, allowing users to examine their collections as well as access prominent NFT marketplaces such as OpenSea.
• Coinify ApS, a crypto payment system, was purchased by cryptocurrency broker Voyager Digital Ltd for $84 million. Coinify investors would receive 5.1 million Voyager shares worth $69 million in exchange for $15 million in cash. The arrangement was reached after the broker decided to expand its 1.75 million customer base by adding a global payment infrastructure to its digital environment.
• El Salvador has secured an agreement with Blockstream and iFinex to expand its bitcoin market activities. El Salvador could issue $1 billion in bitcoin bonds using Blockstream's Liquid Network. The bond proceeds might be used to fund the development of bitcoin mining driven by volcanoes.
• BitPay has announced that Shiba Inu (SHIB) payments are now accepted on its platform, with users able to buy, store, and trade the digital currency via the BitPay Wallet app. SHIB has gone to the top of the list of coins to add, thanks to an active ShibArmy and answers from AMC Theatres and Newegg. On CoinMarketCap, Shiba Inu is now among the top 15 cryptocurrencies by market capitalization.