The Blockchain as a service market is evaluated at US$784.977 million for the year 2022 growing at a CAGR of 22.85% reaching the market size of US$3,315.572 million by the year 2029.
Blockchain as a service (BaaS) just like software as a service, is a technical service model that 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, 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.
Blockchain as a service provides security to sensible and crucial data, keeps track of multiple transactions through its distribution ledgers, through audit trails provides data traceability, and through high automation, 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, 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.
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 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 the 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 legitimate method for conducting financial transactions, owing to which they are taking undertaking steps to ban it.
The blockchain-as-a-service (BaaS) industry in North America has grown rapidly due to enterprises' increased interest in and comprehension of blockchain technology. Businesses are investigating blockchain technologies due to the combination of improved security and efficiency with the appeal of decentralized and transparent systems. This acceptance is further fueled by the scalability and cost-effectiveness of BaaS models, which allow enterprises to use the benefits of blockchain without requiring substantial in-house infrastructure or expertise.
The blockchain's revolutionary potential is being recognized by sectors, and North America's BaaS industry is well-positioned to grow further to meet the changing needs of companies looking for dependable and creative blockchain solutions.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Market Size Value in 2022 | US$784.977 million |
| Market Size Value in 2029 | US$3,315.572 million |
| Growth Rate | CAGR of 22.85% from 2022 to 2029 |
| Base Year | 2022 |
| Forecast Period | 2024 – 2029 |
| Forecast Unit (Value) | USD Million |
| Segments Covered |
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| Companies Covered |
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| Regions Covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Customization Scope | Free report customization with purchase |