Blockchain As A Service Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Offering (Tool, Service), By Enterprise Size (Small, Medium, Large), By Application (Transfer Payments, Personal Data Reviewing, Smart Contract, Cryptocurrencies, Others), By End User Industry (BFSI, Communication And Technology, Healthcare, Manufacturing, Transportation And Logistics, Government, Others), And By Geography - Forecasts From 2022 To 2027

The blockchain as a service market is estimated to be valued at US$502.565 million in 2020. Blockchain as a service (BaaS) just like software as a service, is a technical service model which uses cloud computing to create an infrastructure and management network for the companies that are operating in blockchain applications such as money transfer, smart contracts, identity management, and supply chain management among others. The growing technological innovations have increased the demand for modern technical solutions that provide more transparency in applications such as financial transactions, and data recognition, thereby reducing their risk and complexities creating a drive in the market demand. Various financial institutions are undergoing strategic collaborations with service providers to promote the adoption of blockchain as a service in their operations. For instance, in July 2021, the 15 leading banks of India including SBI, ICICI, and HDFC Bank among others formed a consortium of blockchain called Indian Bank’s Blockchain Infrastructure Company Private Limited, which will use Finacle Connect blockchain platform of Infosys in their trade-related finance operations. Furthermore, the Ethiopian Ministry of Education, in April 2021, announced a strategic collaboration with blockchain maker IOHK, in which IOHK will provide blockchain based digital identities for approximately five million students.

Favorable government initiatives and investments toward blockchain as a service is projected to boost the market growth.

Blockchain as a service provides security to sensible and crucial data, keeps track of multiple transactions through its distribution ledgers, through audit trails it provides data traceability, and through high automation, it improves the data processing speed. Owing to such high-performance benefits, the government of countries is realizing the importance of blockchain as a service model in various applications for business sectors such as financial institutions, transportation & logistics, and manufacturing among others, thereby, undertaking various investments, schemes and agreements to promote the usage of technical service models. For instance, the Bermuda government, in October 2021, announced at the Bermuda Tech Summit 2021 to launch a blockchain-based token for its retail market. The token will be a Bermudian dollar-backed stablecoin. Also, in October 2022, Thailand’s Thai Fintech Association and Hungary’s Hungarian Blockchain Association entered into a Memorandum of Understanding to promote the usage of blockchain technology in their financial sectors. Furthermore, according to the International Trade Administration, in June 2020, the Saudi Arabian Monetary Authority implemented the usage of blockchain technology for transferring US$13.3 billion into the kingdom’s banking sector.

Though technological advancements are boosting the usage of blockchain as a service, however, the blockchain as a service consists of the usage of cryptocurrencies and in order to safeguard the investor's interest and also preserve financial stability, rules and regulations are being implemented by the governing authorities in the countries. For instance, in November 2021, the Biden Administration signed and introduced the Infrastructure Investment and Jobs Act, which requires brokers to report to Internal Revenue Service (IRS) for their digital asset transactions that are valued at more than US$10,000. Certain governments, consider cryptocurrency as not a legit method for conducting financial transactions, owing to which they are taking undertaking steps of banning. For instance, in September 2021, the People’s Republic of China recognizing the negative effects of cryptocurrencies on its financial system announced to ban on all cryptocurrency transactions. Such regulations can hamper the blockchain as a service market growth during the forecast period.

Recent development and expansion

• Seracle, in July 2022, announced the launch of Web 3.0 Non-Fungible Token whose infrastructure provides entertainment, gaming, eCommerce, sports, and social media brands to use payment solutions such as crypto and fiat as per their need, irrespective of the geographical boundaries
• Microsoft Corporation, in May 2021, announced the launch of Azure Confidential Ledger which is a new blockchain-powered ledger service. It provides an additional layer of security on the blockchain, uses Azure's confidential computing platform, and is built on the confidential consortium framework of Microsoft.
• IB, in October 2019, launched “Sterling Supply Chain Suite” which is a blockchain-based new supply chain service, that allows manufacturers, retailers, and distributors to integrate their as well as their supplier's data on a Hyperledger based blockchain for keeping a close track on the products and parts.

Covid-19 Impact on the Blockchain as a Service Market

The recent COVID-19 pandemic resulted in a slowing of development. Various regulations imposed by the governing authorities resulted in a slowdown of trading activities among various sectors, as a result of which the financial and supply system also took a massive hit. The COVID-19 pandemic boosted the adoption of digital platforms for financial payments and transactions, and since provenance and security in data storage are essential in a supply chain, the applicability of such a technological service model started to gain traction. Furthermore, the eCommerce sector also saw significant growth during the COVID period owing to the rapid increase in online shopping by people, hence, such rapid growth has provided wider growth prospects to the blockchain as a service platform since it can be used in the sector for providing transparency in customer data reviewing.

Blockchain as a Service Market Scope:

Segmentation

• By Offering
  • Tool
  • Service
• By Enterprise Size
  • Small
  • Medium
  • Large
• By Application
  • Transfer Payments
  • Personal Data Reviewing
  • Smart Contract
  • Cryptocurrencies
  • Others
• By End-User
  • BFSI
  • Communication and Technology
  • Healthcare
  • Manufacturing
  • Transportation and Logistics
  • Government
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • United Arab Emirates
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Taiwan
    • Indonesia
    • Thailand
    • Others