The Global Smart Contracts Market is estimated to be valued at US$ 287.71 Bn in 2024
Smart contracts are self-executing contracts with terms of agreement between buyer and seller being directly written into lines of code. They not only define the rules and penalties around an agreement in the same way that a traditional contract does, but also automatically enforce those obligations. Smart contracts eliminate the risks and costs associated with third-party involvement and provide transparency to all involved parties. Smart contracts are being widely used in various applications such as payments, escrow, titles, copyrights, patents, medical records management, identity management and much more.
The Global Smart Contracts Market is estimated to be valued at US$ 287.71 Bn in 2024 and is expected to exhibit a CAGR of 16% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the smart contracts market are DeviantArt, Nifty Gateway, SuperRare, Foundation, MakersPlace, KnownOrigin, Async Art, ArtBlocks, OpenSea, Rarible, NTWRK, ArtStation, Artsy, Saatchi Art, Singulart, DigitalArt4Climate, Hic et Nunc, Showtime, Verisart, Artmajeur. Rapid adoption of blockchain technology and growing cryptocurrencies market are the key factors fuelling the demand for smart contracts. Technological advancements such as integration of IoT, AI and cloud computing are further enhancing the capabilities of smart contracts.
Market Trends
Decentralized Finance (DeFi) has become one of the biggest trends in the Smart Contracts Market Size. DeFi allows for financial services without centralized intermediaries and provides an open financial system built on Ethereum. NFTs for digital assets are also gaining steady traction in the market. The ability to tokenize real-world assets using smart contracts is another emerging trend.
Market Opportunities
Growing application of smart contracts in payments and supply chain management presents significant opportunities. Banking and financial institutions are exploring ways to integrate smart contracts for developing novel products and services. Governments and public services can leverage blockchain-enabled smart contracts to improve transparency and eliminate intermediaries.
Impact of COVID-19 on Smart Contracts Market
The COVID-19 pandemic has significantly impacted the growth of the smart contracts market. During the pre-COVID times, the market was growing steadily at around 16% CAGR driven by increasing blockchain adoption across various industries. However, the outbreak of the pandemic in early 2020 disrupted business activities globally.
The lockdowns imposed by various governments worldwide adversely affected many industries relying on physical operations and supply chains. This reduced the demand for incorporating smart contracts to automate and optimize processes in areas like insurance, supply chain management, healthcare records etc.
However, with the rapid digital transformation during COVID-19, many industries recognized the opportunities of remote working, virtual collaboration and automation. This boosted the use of blockchain and smart contracts to facilitate distributed ledger solutions, paperless agreements and identity management without physical interaction.
As the pandemic accelerated the pace of digitalization, it augmented the demand for smart contract capabilities to develop decentralized applications across finance, commerce, education and more. Post pandemic, as businesses restart operations with new hybrid models, smart contracts are expected to play a major role in supporting transparent, auditable and automated transactions in a distributed ecosystem. Overall, while COVID-19 initially slowed down the market growth, it enhanced focus on technologies like blockchain that can facilitate resilience and flexibility in the long run.
North America leads in Smart Contracts Market in terms of value
In terms of value, North America accounted for the largest share in the global smart contracts market in 2024. The region is an early adopter of emerging technologies like blockchain due to strong infrastructure, skilled workforce and growing venture capital funding. The US and Canada have seen increasing investments and projects using smart contracts for payment processing, digital identity, intellectual property management and healthcare applications. With supportive government policies, established tech giants and growing startups, North America remains at the forefront of implementing innovative blockchain solutions powered by programmable contracts.
Asia Pacific is the fastest growing region for Smart Contracts Market
The Asia Pacific region is expected to witness the fastest growth in the smart contracts market during the forecast period of 2024 to 2030. Factors such as rapidly developing digital economies, young tech-savvy population and government initiatives are driving the growth of blockchain adoption in countries like China, India, Japan, South Korea and others. Several major companies have announced investments and partnerships in the region focused on implementing smart contracts in supply chain, financial services, digital identity and trade finance. With increasing awareness, affordable developers and strong economic growth post pandemic, Asia Pacific offers immense opportunities for the smart contract technology to scale across industries.
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