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.
REPORT METRIC |
DETAILS |
Market Size Available |
2021 – 2027 |
Base Year |
2021 |
Forecast Period |
2022 - 2027 |
CAGR |
22.5% |
Segments Covered |
By Platform, Technology, Application, and Region. |
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
Market Leaders Profiled |
Monax (UK),Monetas (Switzerland),Coinbase (US),Coinify (US),Bitpay (US),Bitfinex (British Virgin Islands),Binance (Cayman Islands),CoinDCX (India),SoluLab (India),GoCoin (Singapore) and Others. |
Market Segmentation
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.
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.
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.
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
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