Smart Contract Market

Smart Contract Market Overview

The Smart Contract Market size was valued at USD 1.83 billion in 2023 and is predicted to reach USD 7.78 billion by 2030 with a CAGR of 23.0% from 2024-2030. The smart contract market encompasses the development, deployment, and utilization of self-executing contracts where the terms are encoded directly into blockchain technology. These smart contracts automatically enforce and execute agreements when predefined conditions are met, minimizing the need for intermediaries and reducing transaction costs. The market includes technology providers, such as blockchain platforms and software developers, and spans various applications such as finance, supply chain management, real estate, and legal services. Their immutability ensures that the contract's code and execution history are recorded transparently and cannot be altered. By streamlining and automating contractual processes, decentralized contracts offer a more efficient, secure, and cost-effective alternative to traditional agreements.

Market Dynamics and Trends

The smart contract market demand is driven by the widespread implementation of blockchain technology in BFSI sector to leverage the transparency and security of blockchain. For instance, numerous banking and financial institutions are increasingly adopting blockchain technologies through collaborations with various blockchain providers.

Notable examples include HSBC Holdings plc partnering with Corda blockchain, Goldman Sachs using USDC, J.P. Morgan integrating with Liink, and the Swedish Central Bank leveraging E-Krona. These strategic partnerships between financial institutions and blockchain firms are significantly driving the growth of the market, highlighting the expanding role of decentralized contracts in enhancing financial operations and transaction efficiencies.

Moreover, the increasing cybersecurity threat worldwide is boosting the adoption of web 3.0 blockchain technology. Blockchain offers a compelling solution by providing greater transparency, reducing vulnerability to cyber-attacks, and ensuring secure data transactions. For example, in 2023, approximately 5.5 billion malware attacks and 6.3 trillion online intrusion attempts took place globally. As organizations seek more robust and secure solutions to protect their data and digital assets from cyber threats, the adoption of blockchain technology to safeguard sensitive data is poised to rise, driving the growth of the market.

However, the lack of flexibility and the high costs associated with the development and auditing of smart contracts are the major factors restraining the growth of the market. On the contrary, the integration of scalability technologies such as sharding, sidechains, or layer 2 solutions, along with the incorporation of artificial intelligence, is expected to create ample growth opportunities in the market. These advancements promise to enhance the functionality and throughput capacity of cryptographic contracts, offering more robust, efficient, and scalable solutions.

Market Segmentations and Scope of the Study

The smart contract market report is segmented on the basis of blockchain platform, blockchain type, enterprise type, end-user, and region. On the basis of blockchain platform, the market is divided into Ethereum, Cardano, Solana, BNB Smart Chain, and others. On the basis of blockchain type, the market is segmented into public, private, and hybrid. On the basis of enterprise type, the market is classified into Large Enterprises and Small & Medium Enterprises (SMEs). On the basis of end-user, the market is divided into BFSI, transportation and logistics, healthcare, government & public, real estate, and others. Regional breakdown and analysis of each of the aforesaid segments include regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America dominates the smart contract market share and is expected to continue its dominance during the forecast period. This is due to the presence of a developed healthcare sector adopting immutable contracts to improve efficiency, patient privacy, and streamlined processes for medical records & supply chain management. For instance, in 2022, U.S. based company Hedera Hashgraph LLC is collaborated with numerous healthcare companies in North America to utilize its smart contracts 2.0. Through these collaborations, the company aims to automate and enhance health data storage, patient privacy, supply chain management, and insurance settlements, resulting in improved patient outcomes and streamlined healthcare processes.

Moreover, the presence of key market players such as Coinbase and Coinbase Asset Management plays an important role in the growth of the market with their continuous advancements and innovations. For instance, in December 2023, Coinbase and Coinbase Asset Management announced to launch "Project Diamond," a new initiative aimed at enhancing the management of digital assets. This project focuses on developing a smart contract-based framework to improve asset management processes and provide users with more control over their digital assets. The goal is to streamline operations and enhance security for both individual and institutional investors.

On the other hand, the Asia-Pacific region is anticipated to demonstrate steady growth in the market, driven by the increasing adoption of blockchain technology within the Banking, Financial Services, and Insurance (BFSI) sector to enhance banking operations. For instance, in January 2022, the Asian Development Bank (ADB) launched a blockchain technology-based securities settlement, exploring its potential to improve efficiency and transparency in the financial sector. The ADB's trial of blockchain for securities settlement underscores the rising interest among financial institutions in adopting blockchain technology, highlighting its potential to revolutionize traditional settlement processes and significantly impact the market in the region.

Moreover, the growing adoption of decentralized contracts in the supply chain by e-commerce companies in the Asia-Pacific region is further driving the growth of the smart contract market expansion, enabling streamlined processes and enhanced safety & security in transactions in the e-commerce sector. For instance, in January 2023, Chinese e-commerce company Meituan launched cryptographic contract functionality on its platform. Through this launch, the company aims to allow users to leverage the digital currency for secure and automated transactions, driving the adoption of smart contracts in this region.

Competitive Landscape

Various key players operating in the smart contract industry include Monax Industries Limited, Monetas, Blockstream Corporation, Coinbase Inc., Bitfinex, BlockCypher Inc., Chain Inc., Coinify ApS, BitPay Inc., GoCoin Pte. Ltd., IBM Corporation, Oracle Corporation, Equinor ASA, iQIYI, Inc., and Grayscale Investments LLCamong others. These companies are adopting strategies such as product launches to remain dominant in the market.

For instance, in October 2023, Circle Technology Services, LLC announced to launch two new decentralized application (d-app), the Circle Gas Station and the Circle Smart Contract Platform, enabling developers to write and deploy contracts using familiar programming languages including JavaScript, Python, or Ruby. These applications will allow users to access USDC balances and transactions across multiple blockchain networks, including Ethereum, Solana, Algorand, and Stellar, facilitating cross-chain interoperability.

in October 2022, Equinor announced the implementation of smart contracts to automate its commercial agreements, streamlining the contract management process and improving operational efficiency. By leveraging blockchain technology, Equinor aims to enhance transparency, reduce manual errors, and optimize its business processes in the energy sector.

Moreover, in October 2022, iQIYI integrated smart contracts into its operations to address copyright issues more effectively. By leveraging blockchain technology, iQIYI aims to ensure secure and transparent transactions, protect intellectual property rights, and streamline the management of copyright-related agreements.

Furthermore, in March 2022, Grayscale Investments announced the launch of a new fund focused on smart contract platforms. The fund aims to provide investors with exposure to a diversified portfolio of smart contract-focused projects, allowing them to participate in the growing adoption and potential value appreciation of blockchain-based platforms.

Key Benefits

• The report provides quantitative analysis and estimations of the smart contract market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the current and future smart contract market trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report.

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Smart Contract Market Key Segments

By Blockchain Platform 

• Ethereum

• Cardano

• Solana

• BNB Smart Chain

• Others

By Blockchain Type 

• Public

• Private

• Hybrid

By Enterprise Type

• Large Enterprises 

• Small & Medium Enterprises (SMEs)

By End-Users 

• BFSI

• Transportation & Logistics

• Healthcare

• Government & Public

• Real Estate

• Others

By Region 

• North America

  • The U.S

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France    

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  •  India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  •  Taiwan

  •  Thailand 

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East 

  • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 1.83 Billion
Revenue Forecast in 2030	USD 7.78 Billion
Growth Rate	CAGR of 23.0% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	Rising adoption in BFSI drives the market growth Increasing risk of cybersecurity boosts the market adoption
Countries Covered	28
Companies Profiled	15
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

• Monax Industries Limited

• Monetas

• Blockstream Corporation

• Coinbase Inc.

• Bitfinex

• BlockCypher Inc.

• Chain Inc.

• Coinify ApS

• BitPay Inc.

• GoCoin Pte. Ltd.

• IBM Corporation

• Oracle Corporation

• Equinor ASA

• iQIYI, Inc.

• Grayscale Investments LLC