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2021

Cryptocurrency Market

Cryptocurrency Market Size, Share, Competitive Landscape and Trend Analysis Report by Offering, Process, Type and End User : Global Opportunity Analysis and Industry Forecast, 2021-2030

BI : IT in BFSI

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Author's: Aarti Goswami| Pramod Borasi | Onkar Sumant
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Cryptocurrency Market Outlook – 2030 

The global cryptocurrency market size was valued at $1.49 billion in 2020, and is projected to reach $4.94 billion by 2030, growing at a CAGR of 12.8% from 2021 to 2030. Cryptocurrency is known as virtual currency.

It is a form of currency that exists digitally only and has no central issuing or regulating authority above. It uses blockchain technology to authenticate the transactions. Blockchain is a decentralized technology spread across many computers that manages and records transactions. Furthermore, it does not rely on banks to verify the transactions but is used as peer-to-peer system that enable users to send and receive payments from anywhere in the world.

Cryptocurrency Market Insights

Increase in need for operational efficiency and transparency in financial payment systems, rise in demand for remittances in developing countries, increase in data security, and improved market cap are the major factors that drive the growth of the global cryptocurrency market. Moreover, high implementation cost and lack of awareness of cryptocurrency among the people in developing nations hamper the cryptocurrency market growth. Furthermore, increase in demand for cryptocurrency among banks, and financial institutions and untapped potential on emerging economies are expected to provide lucrative opportunity for the market expansion during the forecast period.

The hardware segment acquired major cryptocurrency market share owing to rise in need for upgrading the performance of the software and to enhance the efficiency of financial payment tools. However, the software segment is expected to grow at the highest rate during the cryptocurrency market forecast period, as it facilitates to manage the massive volume of data being generated for meaningful insights and better-informed decisions.

By region, the cryptocurrency market was dominated by Asia-Pacific in 2020, and is expected to retain its position during the forecast period. Owing to increase in number of Bitcoin exchange across Asia, which bring a certain healthy competition and maturity to the cryptocurrency industry. Chinese banks are hiring blockchain experts as the government pushes the use of the technology behind bitcoin to increase transparency and combat fraud in its financial sector. These factors drive growth of the cryptocurrency market in the region.

The report focuses on the growth prospects, restraints, and trends of the global crtyptocurrency market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the global cryptocurrency market.

Cryptocurrency Market
By Offering
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Hardware segment accounted for the highest market share throughout the forecast period

Segment Overview 

The cryptocurrency market is segmented on the basis of offering, process, type, end user and region. By offering, it is fragmented into hardware, and software. The hardware segment is further segmented into ASIC, GPU, FPGA, and others. The ASIC is further segregated into full custom ASIC, semi-custom ASIC, and programmable ASIC. Based on process, it is bifurcated into mining and transaction. By type, it is segmented into bitcoin (BTC), ethereum (ETH), tether (USDT), binance coin (BNB), cardano (ADA), ripple (XRP), and others. By end user, it is classified into trading, retail and e-commerce, banking, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Cryptocurrency Market
By Process
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Transaction segment will grow at a highest CAGR of 14.6% during 2021 - 2030

Competitive Analysis

The key players profiled in the market report are Advanced Micro Devices Inc., Antier Solutions, BitFury Group Limited, BTL Group Ltd., Coincheck Inc., Intel Corporation, Ledger SAS, NVIDIA Corporation, Ripple, Xilinx Inc., and Xapo Holdings Limited. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the cryptocurrency industry.

Cryptocurrency Market
By Type
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Bitcoin (BTC) segment will maintain the lead throughout the forecast period

COVID-19 Impact Analysis

The COVID-19 pandemic has a negative impact on the cryptocurrency market, owing to the level of stability in cryptocurrency has significantly diminished while the irregularity level significantly augmented and cryptocurrencies became more volatile, which is set to decline the demand for cryptocurrency during global health crisis. Moreover, cryptocurrency exhibits a low level of regularity compared to international equity markets, which further declines the demand for cryptocurrency tremendously during the pandemic situation.

Cryptocurrency Market
By End User
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Retail & E-commerce segment will dominate the market by the end of 2030

Market Landscape and Trends

The cryptocurrency market has witnessed significant developments and shifts in its landscape, along with emerging trends that are shaping the industry. One major trend is the growing institutional adoption of cryptocurrencies. Traditional financial institutions, including banks and asset management firms, have recognized the potential of cryptocurrencies as an investment asset class. This trend has been driven by factors such as increase in legitimacy of cryptocurrencies, the potential for high returns through investing in cryptocurrencies, and the desire to diversify investment portfolios. Institutional investors pour significant capital into cryptocurrencies, contributing to the market's overall growth and stability. Another notable trend includes, rise of decentralized finance (DeFi) platforms. DeFi refers to a set of financial applications built on blockchain networks that enable peer-to-peer lending, borrowing, and other financial activities without the need for intermediaries. DeFi has gained substantial traction due to its potential to disrupt traditional financial systems by providing greater financial inclusivity, transparency, and efficiency. The decentralized finance has seen the emergence of various decentralized exchanges, lending platforms, and yield farming protocols, creating new avenues for investors to participate in decentralized finance.

Furthermore, non-fungible tokens (NFTs) have captured significant attention and market activity. NFTs are unique digital assets that can represent ownership or proof of authenticity for items such as artwork, collectibles, and virtual real estate. The NFT market experienced a surge in popularity in the recent years, with high-profile sales and increase in interest from artists, creators, and collectors. NFTs have opened up new possibilities for monetizing digital creations and have the potential to reshape the art, gaming, and entertainment industries. In addition, regulatory developments have played a crucial role to shape the cryptocurrency market. Governments and regulatory bodies globally are actively working to establish frameworks to govern cryptocurrencies, exchanges, and initial coin offerings (ICOs). The regulatory landscape continues to evolve, with some countries adopting supportive stances to encourage innovation and others imposing stricter regulations to mitigate risks such as money laundering and fraud. Regulatory clarity is increasingly sought after by market participants to foster mainstream adoption and ensure investor protection.

Therefore, the cryptocurrency market witnesses the growing institutional adoption of cryptocurrencies, rise of decentralized finance platforms, emergence of non-fungible tokens, and ongoing regulatory developments. These trends collectively reflect the maturation and expanding reach of the cryptocurrency market, with implications for both, investors and industry participants.

Top Impacting Factors

Rise in Need For Transparency in the Payment System

The cryptocurrency market is expected to witness promising growth in the coming years, owing to improved data transparency and independency across payments in banks, financial services, insurance, and various other business sectors. The use of crypto currency across banking industries provides various benefits such as sending and receiving payment transparently and storing customers detail information securely for next purpose. 

Cryptocurrency Market
By Region
2030
Asia-pacific 
North America
Europe
LAMEA

Asia-Pacific region would exhibit the highest CAGR of 14.5% during 2021 - 2030

For instance, PayPal is an American-based company, operating in an online payment systems. It entered into the cryptocurrency market on October 21, 2020 and announced that customers will be able to buy and sell Bitcoin and other virtual currencies using their PayPal accounts. In addition, Mastercard with the partnership of Island Pay launched the world’s first CBDC-linked Card on February 10, 2021. Thus, number of such developments across the major players drives the growth of the market. 

Furthermore, innovative blockchain distributed technology protocols are expected to replace the need for certain organizational solutions and allow diverse players to share payment transparently across the company. Such systems bring transparency to supply chains, helping in elimination of environmental crimes and others. This boosts the adoption of cryptocurrency in the future.

Untapped Potential on Emerging Economies

Developing economies offer significant opportunities for cryptocurrency to expand their business by offering easier access to capital and financial services. Bitcoin, the most famous of these cryptocurrencies, has already permitted many people and companies to develop and flourish, as their source of income. The economy is slowly shifting to adapt to these needs and cryptocurrencies have a great potential in satisfying them. 

Evolving demographics, rise in consumerism and openness toward new technologies such as IoT, Blockchain, and others provide lucrative opportunities for cryptocurrency across developing nations. According to Oxford Business Group, Nigeria is the leading country for Bitcoin and cryptocurrency adoption due to use it as a means of sending remittances. 

In addition, the central bank of Philippines approved 16 cryptocurrency exchanges. This leads to the fact that the country is becoming one of the world’s largest adopter of cryptocurrency Furthermore, rise in smartphone penetration in Latin America and Africa enables mobile payment service providers to offer sophisticated services on mobile phones. This is considered as an important opportunity for the growth of the market.

Key Benefits For Stakeholders 

  • This study includes cryptocurrency market analysis, and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and cryptocurrency opportunity.
  • The cryptocurrency market size is quantitatively analysed from 2020 to 2030 to highlight the financial competency of the industry.
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the cryptocurrency market trends.

Cryptocurrency Market Report Highlights

Aspects Details
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By OFFERING
  • Hardware
    • Cryptocurrency for hardware, by type
      • ASIC
        • Programmable ASIC
        • .Full Custom ASIC
      • GPU
      • FPGA
      • Others
  • Software
    • Software solution, by type
      • Mining platform
      • Exchange
      • Coin Wallet
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By PROCESS
  • Mining
  • Transaction
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By TYPE
  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Tether (USDT)
  • Binance Coin (BNB)
  • Cardano (ADA)
  • Cardano (ADA)
  • Others
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By END USE INDUSTRY
  • Trading
  • Retail and E-commerce
  • Banking
  • Others
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (France, Germany, Italy, Spain, UK, Russia, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, South Africa, Saudi Arabia, UAE, Argentina, Rest of LAMEA)
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Key Market Players

ADVANCED MICRO DEVICES, INC., ANTIER SOLUTIONS., XAPO HOLDINGS LIMITED, BITFURY GROUP LIMITED, LEDGER SAS, INTEL CORPORATION, XILINX, BITMAIN TECHNOLOGIES HOLDING COMPANY, COINCHECK, INC., RIPPLE, NVIDIA CORPORATION

Analyst Review

The current business scenario is witnessing a decrease in the demand for cryptocurrency, particularly in the developing regions such as China, India, and others, due to stringent government regulations related to investor & organization safety and security. Moreover, companies in this industry are adopting various innovative techniques such as mergers and acquisition activities, to strengthen their business position in the competitive matrix.

Increase in economic strength of the developing nations such as China and India are expected to provide lucrative opportunities for the market growth. Asia-Pacific is expected to hold a dominant position in the cryptocurrency market globally, with the availability of advanced technology in the region along with presence of major players operating in the market. In addition, some of the leading market players are offering innovative blockchain distributed ledger technology to enhance the business efficiency of the various organizations by improving their safety and security features.

Furthermore, rise in digitalization in the BFSI industry, surge in awareness of cryptocurrency, and increase in adoption of blockchain distributed ledger among supply chain industries in the Asia-Pacific region propels the growth of the market. Moreover, emerging countries in Asia-Pacific and Latin America are projected to offer significant growth opportunities during the forecast period. The global players focus on product development to increase their geographical presence, owing to increase in competition among local vendors, in terms of features, quality, and price

Author Name(s) : Aarti Goswami| Pramod Borasi | Onkar Sumant
Frequently Asked Questions?

The Cryptocurrency Market is estimated to grow at a CAGR of 12.8% from 2021 to 2030.

The Cryptocurrency Market is projected to reach $4.94 billion by 2030.

To get the latest version of sample report

Increase in need for operational efficiency and transparency in financial payment systems etc. boost the Cryptocurrency market growth.

The key players profiled in the report include Advanced Micro Devices Inc., BitFury Group Limited, BTL Group Ltd., Coincheck Inc., and many more.

On the basis of top growing big corporations, we select top 10 players.

The Cryptocurrency Market is segmented on the basis of offering, process, type, end user and region.

The key growth strategies of Cryptocurrency market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.

Asia-Pacific region would grow at a highest CAGR of 14.5% during the forecast period.

Bitcoin (BTC) segment will dominate the market by the end of 2030.

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Cryptocurrency Market

Global Opportunity Analysis and Industry Forecast, 2021-2030