Redding, California - August 20, 2024
Smart Contracts Market to be Worth $8.7 Billion by 2031
Smart Contracts Market Size, Share, Forecast, & Trends Analysis by Type (Smart Legal Contracts, DAO, ALC), Platform (Ethereum, Hyperledger, Polkadot), Model, Organization Size, Application (Trade, Mortgages), End User (BFSI, Government, Healthcare), and Geography - Global Forecast to 2031
Meticulous Research®—a leading global market research company, published a research report titled, ‘Smart Contracts Market by Type (Smart Legal Contracts, DAO, ALC), Platform (Ethereum, Hyperledger, Polkadot), Model, Organization Size, Application (Trade, Mortgages), End User (BFSI, Government, Healthcare), and Geography—Global Forecast to 2031.’
According to this latest publication from Meticulous Research®, the smart contracts market is expected to reach $8.7 billion by 2031, at a CAGR of 26.4% from 2024–2031.The growth of the smart contracts market is driven by the increasing use of smart contracts on a blockchain in the BFSI sector, growing cross-border transactions and international trade, and the rise in digital transformation initiatives. However, the lack of international regulations and security concerns restrain the growth of this market.
Furthermore, the integration with emerging technologies such as AI & ML and the development of user-friendly interfaces are expected to generate growth opportunities for the stakeholders in this market. However, shortage of skilled it professionals and scalability limitations are major challenges impacting the growth of the smart contracts market.
The smart contracts market is segmented by type (smart legal contracts, decentralized autonomous organizations (DAO), application logic contracts (ALC)), platform (ethereum, hyperledger, counterparty, polkadot, other smart contract platforms), model (external models, internal models), organization size (large enterprises, small and medium-sized enterprises), application (record storage, commercial activities, supply chain, trade, mortgages, property purposes, employment contract, copyright protection, health services, electoral processes, insurance claims, other applications), end user (government, BFSI, healthcare, agriculture, transportation/logistics, automotive, real state, legal affairs, education, other end users). This study also evaluates industry competitors and analyzes the market at the regional and country levels.
By type, in 2024, the smart legal contracts segment is expected to account for the largest share of over 43.0% of the smart contracts market. The large market share of this segment is attributed to the increasing use of smart legal contracts for managing supply chains, increasing adoption of blockchain technology, and growing demand to automate routine tasks for organizations to lower legal and operational costs.
Smart legal contracts bring transparency to traditional documents, as these contracts are stored on a blockchain and cannot be altered. Contracts are executed by the parties using digital signatures. They ensure serious legal implications if stakeholders or contracting entities do not meet certain conditions.
By platform, in 2024, the ethereum segment is expected to account for the largest share of over 65.0% of the smart contracts market. The large market share of this segment is attributed to the increasing use of ethereum for decentralized applications (dApps), the rapid expansion of the NFT market, and the increasing demand for ethereum for finance, gaming, and supply chain management. Ethereum is a decentralized software platform powered by blockchain technology that features its cryptocurrency, Ether (ETH). The platform uses blockchain and decentralized finance application development to enable secure digital ledgers to be publicly created and maintained.
By model, in 2024, the external models segment is expected to account for the larger share of over 68.0% of the smart contracts market. This segment’s large market share is due to the increasing security risks such as data tampering and manipulation and the rising utilization of external models for managing complex agreement terms.
By organization size, in 2024, the large enterprises segment is expected to account for the larger share of over 70.0% of the smart contracts market. This segment’s substantial market share is attributed to the increasing use of blockchain technology by large enterprises and the increasing need to reduce data tampering, fraud, and disputes in business operations. Large enterprises are early adopters of smart contracts that help enterprises gain a competitive edge with the development of innovative business models and improve operational efficiency.
By application, in 2024, the trade segment is expected to account for the largest share of over 33.0% of the smart contracts market. The substantial market share of this segment is due to the growing adoption of ethereum for trading, the expanding development of finance-focused blockchain solutions by major industry players, and the rising demand for streamlining complex trade processes across various sectors.
By end user, in 2024, the BFSI segment is expected to account for the largest share of over 34.0% of the smart contracts market. The large market share of this segment is attributed to the increasing use of smart contracts for loan origination and insurance claims, the increasing need to automate the acceleration of transaction times, and the increasing demand for smart contracts to provide a high level of security for the protection of sensitive financial data from cyberattacks. Smart contracts enable the tokenization of various financial assets, creating growth opportunities in the BFSI sector.
By geography, in 2024, North America is expected to account for the largest share of over 42.0% of the smart contracts market. The North American market is propelled by several factors, including government regulations on electronic contracts and signatures, the growing adoption of digital assets and blockchain technologies by organizations, and the rising utilization of smart contracts in supply chain management. North America benefits from robust technological infrastructure, which has expedited the development and implementation of blockchain technologies. Notably, the U.S. has been a pioneer in the adoption of smart contracts.
Key Players
The key players operating in the smart contracts market are IBM Corporation (U.S.), Oracle Corporation (U.S.), Chainlink (U.S.), Infosys Limited (India), Stratis Group Ltd. (U.K.), Amazon Web Services, Inc. (U.S.), TATA Consultancy Services Limited (India), Solana Foundation (Switzerland), Shardeum (Switzerland), Ethereum Foundation (Switzerland), Avalanche (BVI), Inc. (U.K.), Algorand Foundation Ltd. (Singapore), Stellar Development Foundation (U.S.), Blockstream Corporation Inc. (Canada), and Waves Technologies (U.K.).
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Key Questions Answered in the Report:
- What are the high-growth market segments in terms of the type, platform, model, organization size, application, and end-user?
- What is the historical market size for the smart contracts market?
- What are the market forecasts and estimates for 2024–2031?
- What are the major drivers, restraints, opportunities, challenges, and trends in the smart contracts market?
- Who are the major players in the smart contracts market, and what are their market shares?
- What is the competitive landscape like?
- What are the recent developments in the smart contracts market?
- What do major market players adopt the different strategies?
- What are the trends and high-growth countries?
- Who are the local emerging players in the smart contracts market, and how do they compete with other players?
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