In spite of the present doom and gloom enveloping the cryptocurrency market, there is still a measure of much-needed good news for the future of the industry as a whole. A report by Meticulous Research about the future growth of the present blockchain market has revealed that the industry has a bright future.

According to the report published by the research firm today, November 28, the global blockchain industry is expected to reach a value of $28 billion by 2025. To see how impressive this figure is, juxtapose it with the fact that the current size of the market is $385.5 million.

The researchers believe that heightened interests from formal financial institutions, rising acceptance among merchants, and increasing rates of adoption of Blockchain as a Service (BaaS) are among the variety of factors that will drive the growth of blockchain.

The publication further notes that the largest share of the total market is gobbled up by the banking and financial sector. It also cites payments “as the largest form of application of the technology.” The sector of blockchain solely focused on finance is projected to grow at a compound annual growth rate (CAGR) of 70%. As to why this sector is poised to become the largest user of blockchain technology, Meticulous Research has this to say: “The rising need to transfer funds directly and securely to anyone and growing demand to reduce [the] cost of transactions propels the adoption of blockchain in this application area.”

The research also believes that BaaS will be a means of bridging “the current gap between technical expertise in building and programming blockchain and actually using the technology in business applications.” For those not familiar with the service, BaaS aids customers in developing their personalized distributed ledger technology (DLT) applications through the use of a cloud-based service provider.

The report goes on to state that the “home of [the] majority of the blockchain market’s tech companies is in North America.” But, the area that is expected to grow massively by 2025 is Asia-Pacific. The reasons for this include “how quickly nations such as Korea and Japan are embracing cryptocurrency and the technology in industries such as finance and supply chain.”

In conclusion

A report by Meticulous Research has given a flicker of hope to the blockchain industry. In its published report, the current blockchain market, which is valued at $385.5 million, is expected to grow massively into a $28 billion industry by 2025; a compound annual growth rate (CAGR) of 74.1%. Increasing interest from traditional financial institutions, rising merchant acceptance, and increasing rates of adoption of BaaS are some of the reasons responsible for the expected growth.

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