The Global Cryptocurrency Market Was Valued At USD 4.25 Billion In 2022 And Is Expected To Expand At A CAGR Of 12.2% From 2023 To 2030.

Cryptocurrency Market Overview

Cryptocurrency, which is also called "virtual currency," exists only in digital form and is not regulated by any government. For transactions to be valid, cryptocurrencies use distributed ledger technology like blockchain. During the forecast period, the growth of the cryptocurrency market is expected to be driven by the growing use of distributed ledger technology. Due to lower fees and exchange rates, more people are likely to use cryptocurrencies to send money across borders, which will help the market grow.

New developments in AI are likely to have a big effect on the cryptocurrency market. AI-based cryptocurrency platforms are becoming more and more popular, which has led a number of businesses to focus on making AI technology. For example, in August 2021, scientists at Los Alamos National Laboratory made a programme that uses artificial intelligence to find illegal cryptocurrency miners who use computers in the lab to mine cryptocurrency.

Also, private venture companies are investing in the market because of the rise of cryptocurrency as a decentralised asset class. For example, USD 6.1 billion was invested in 106 different deals on the U.S. cryptocurrency market in 2021. The growth is also helped by the fact that more people in emerging economies with devalued currencies, like Iran, Argentina, and Zimbabwe, want to use cryptocurrency as an alternative way to pay.

One of the most important factors in the growth of digital currency is the fact that more and more businesses now accept it as a way to pay. Also, big companies like Tesla Inc. and MasterCard Inc. are likely to help the industry grow if they start using digital currency. For example, in November 2021, MasterCard Inc., a company that provides financial services, let its network partners let their customers buy, sell, and hold digital currency using a digital wallet. Also, the business gave customers who took part in loyalty programmes digital currency as a reward.

Market Dynamics

Driver:

Transparency of distributed ledger technology

There are problems with lack of transparency when transactions happen without the people involved knowing about them. This happens a lot in Asian countries, where fraudulent or unwanted transactions, like the automatic deduction of scheduled fees, are often seen.

This could happen because of a mistake made by a person, a mistake made by a machine, or a change made to the data during the transaction. If this happens, customers could lose a lot of money. Also, most financial institutions do not accept that they were wrong. People are unhappy with the current monetary system because it is not clear how it works.

Restraint:

Uncertain regulatory status

There are no rules about the cryptocurrency market yet. At the moment, one of the biggest things stopping people from using cryptocurrencies is the lack of rules and uncertainty about them.

Financial regulators all over the world are trying to come up with common rules for cryptocurrencies, but acceptance by regulators is still one of the biggest problems. As distributed ledger technology is still in its early stages, it raises a number of questions for regulators and policymakers at the national and international levels.

Opportunity:

Significant growth opportunities in emerging and developed markets

Emerging economies (like India, China, and Brazil) and developed countries (like the US, Germany, and Japan) are likely to give companies in the cryptocurrency market a lot of chances to grow.

For example, in 2020, Brazilian crypto companies signed a self-regulatory code that aims to make crypto assets more accepted and popular in the country. The document was signed with the help of Abcripto, which is the group of cryptocurrency companies in the country.

The goal of the agreement is to make sure that all members follow the same operational practises and compliance standards. Foxbit, Ripio, Bitcoin Market, and Novadax are some of the most well-known cryptocurrency companies in the country that signed the code.

Challenge:

Concerns regarding security, privacy, and control

Cryptocurrency has the potential to change and revolutionise peer-to-peer and remittance transactions that don't have to follow any rules. However, for end users to benefit from cryptocurrency, they have to overcome some problems with security, privacy, and control.

Since cryptocurrency transactions are recorded in blockchain, a distributed public ledger, hackers have a lot of ways to get to important and sensitive information. If this public ledger is used to store private information about contracts or payments, making copies of the file could make it easier for hackers to get to that information. If a key falls into the wrong hands, it can be used to get into the database in both hub-and-spoke and distributed models.

Segment Overview

Component Insights

In 2021, hardware was the most important part of the market and made up more than 82.0% of the global revenue. The hardware segment is expected to grow because of things like faster processing speeds and less power use by cryptocurrency miners. Many businesses have made bitcoin mining hardware because customer expectations have changed. To make mining devices, you need hardware like graphics processing units, which are fast, effective, and stable. During the period of the forecast, the industry is expected to grow a lot because of these factors.

During the forecast period, the software segment is expected to grow at the highest CAGR. The growth can be explained by the fact that more and more people want software that lets them exchange and mine cryptocurrencies. The growth of the segment is likely to be helped by the creation of software to handle the huge amount of data that cryptocurrencies generate. Also, the demand for cryptocurrencies is growing around the world, which is driving up the demand for crypto wallets and crypto exchange software, which is expected to help the segment grow.

Hardware Insights

In 2021, the market was led by application-specific integrated circuits, which made up more than 43.0% of global revenue. Application-Specific Integrated Circuits (ASICs) are electronic circuits that are made to mine virtual currencies like Bitcoin, Litecoin, and Ethereum. As the need for cryptocurrency mining devices that use less energy grows, more and more companies are turning to ASIC miners. ASIC also needs less maintenance and uses energy more efficiently, which is expected to help the segment grow.

During the forecast period, the Graphics Processing Unit (GPU) segment is expected to grow at a good CAGR. This growth is because more and more people are using GPUs to mine cryptocurrency because they are fast and use less power. Several crypto miners are told to think about using GPUs to mine crypto. Jon Peddie Research Inc., a company that keeps track of trends in the computer industry, says that 25.0% of GPUs sold in the first quarter of 2021 were to people who mined cryptocurrencies.

Software Insights

In 2021, exchange software was the most important part of the market and made up more than 32.0% of the global revenue. For cryptocurrency transactions to go through, you must use exchange software, which makes it easy to change cryptocurrency coins into fiat currencies and vice versa. The growth of the segment is likely to be helped by the fact that more and more software is being made to make trading cryptocurrency easier.

For example, Open ware Inc., a Fintech software company, released OpenDAX3, a crypto-exchange software platform with Exchange Liquidity Network (ELN) in March 2021. It is meant to help people trade cryptocurrencies, assets, and security tokens by providing better exchange services.

During the forecast period, the wallet segment is expected to grow at a faster rate. The growth of the segment can be attributed to more people using cryptocurrency wallets, which give people online tools for safely managing and storing blockchain assets and cryptocurrencies. Various multi-asset cryptocurrency wallets make it possible to store and trade different cryptocurrencies like Bitcoin, Litecoin, and Ethereum.

Also, a number of companies that offer services for cryptocurrency wallets are focusing on making crypto wallets that let users send and receive cryptocurrencies through mobile apps. For example, in January 2022, Robin Hood, a service provider for cryptocurrency wallets, launched the beta version of its upcoming cryptocurrency wallets. The wallet is made so that customers can use the Robin Hood app to trade, send, and receive cryptocurrencies.

Process Insights

In 2021, the mining segment led the market and made up more than 74.0% of the world's revenue. As part of the mining process, blockchain transactions are checked and made sure to be true. Through mining, new coins are added to the current supply chain. Many businesses around the world are putting in place and building crypto miner farms so that cryptocurrency miners can have a better mining experience.

Since they get their electricity from the public grid, these crypto mines are in a great place to run their mining operations. For example, Enegix, which runs a mining facility, said that its 180-megawatt Bitcoin mining facility in Kazakhstan, which can hold up to 50,000 mining rigs, will open in August 2020.

During the time frame of the forecast, the transaction segment is expected to grow at the fastest CAGR. As technologies like digitization and automation move quickly forward, organisations are needing more and more high-performance transaction services. As a result, many companies around the world are focusing on making Wallet as a Service (WaaS) so that businesses can use safe digital wallets to make their transactions go smoothly and meet the demand for high-performance transactions.

In November 2021, Crypto APIs, a blockchain development company, and Sepior, a Fintech company, worked together to launch Wallet as a Service (WaaS). The WaaS was made to give small and medium-sized businesses, institutions, and enterprises a safe and reliable multicurrency digital wallet to use for cryptographic transactions.

Type Insights

In 2021, the bitcoin segment led the market and made up more than 35.0% of the world's revenue. During the time frame of the forecast, this segment is expected to grow at the fastest rate. Bitcoin is a virtual currency that can be used as an alternative way to pay that doesn't involve a central bank. During the forecast period, the number of Bitcoin Exchange Traded Funds (ETFs) is expected to drive up the number of Bitcoin trades around the world. For example, in May 2022, USD 207 million came into the Purse Bitcoin ETF in Canada. This was the most money that came in.

During the period of the projection, the Ethereum segment is expected to grow a lot. Ethereum is a piece of open software that lets users build a wide range of decentralised apps. Because there are so many new projects that use the Ethereum network, there has been a big increase in network traffic. This is directly related to the growth of the Ethereum market.

With Ethereum, smart contracts were first used for algorithm-based financial transactions. Smart contracts are written instructions for how to handle transactions on the blockchain network. As Ethereum moves to Ethereum 2.0, which uses less energy and costs less to mine, the first-mover advantage should help the cryptocurrency grow over the next few years.

End-use Insights

In 2021, the trading segment was the most important part of the market and made up more than 27.0% of the global revenue. When people trade in cryptocurrencies, they can buy, sell, check their asset balances, and get deposit addresses. Several companies that make browser technology are focusing on making partnerships with companies that make blockchain technology so that their clients can trade cryptocurrency more easily.

For example, in March 2020, Brave Software, Inc., a company that makes browser technology, teamed up with Binance, a company that makes blockchain technology, to make it easy for its users to trade cryptocurrency assets through Binance. All of these things are good signs for the growth of the segment.

During the forecast period, the retail and e-commerce segment is expected to grow at a good CAGR. One of the main things driving the growth of the segment is the growing number of brick-and-mortar and online stores that accept cryptocurrencies as a valid form of payment. Several companies that handle cryptocurrency payments are forming strategic partnerships with e-commerce companies to make it easier for people to pay with digital currencies.

For example, in May 2020, Coin Payments, a company that processes cryptocurrency payments, teamed up with Shopify, an e-commerce company, to offer all Shopify merchants a platform for accepting cryptocurrency payments.

Regional Analysis

In 2020, North America had the biggest share of the global market. This was because most countries in North America treated bitcoins as a medium of exchange for tax purposes, not as money. Even though the government doesn't have any laws about digital money, many developed countries still use it. The growth of the market is driven by both consumers and retailers who are willing to accept digital cash. Also, the market in North America is dominated by a few key players and the fact that bitcoin mining is popular.

A number of technological changes and the fact that some platforms in Japan and Taiwan will accept virtual currency are also expected to give the Asia-Pacific market a big boost. The market in Asia and the Pacific is also helped by strategic partnerships and collaborations between key players. For example, in January 2020, Z Corporation, Inc. and TaoTao, Inc. announced that they would work with the financial service agency to expand the crypto market by making sure that regulations are followed in the Japanese market. During the COVID-19 outbreak, Japan recently agreed to use a new way to exchange digital money. In the same way, Malaysia's Securities Commission has legally given digital currency exchange operators permission to work in the country, even though the whole country is on lockdown because of the coronavirus pandemic. The COVID-19 outbreak could help this market grow in some economies.

A lot of countries in Europe, the Middle East, and Africa (MEA) are also showing how they might use cryptocurrencies. During the time frame of the forecast, Europe and the Middle East and Africa are also expected to grow quickly.

Scope Analysis:

Recent Developments

• In March 2018, NVIDIA announced a series of new technologies and partnerships that expand its potential inference market to 30 million hyperscale servers worldwide while dramatically reducing the cost of delivering deep learning-based services.
• In February 2018, AMD released the EPYC Embedded 3000 series processor and the AMD Ryzen Embedded V1000 processor, which offer high performance, exceptional integration and on-chip security.
• In June 2021 – NYDIG, a digital asset management firm, partnered with NCR Corporation to make crypto purchases available to credit unions and 650 banks. The effort is in response to consumer demand from NCR Bank customers who have purchased digital money through third-party exchanges.

Market Segmentation

This portion of the study on the Cryptocurrency Market gives detailed data on the segments at the country and regional level, thereby aiding the strategist in determining the target demographics for the relevant product or service and the impending opportunities.

By Component

• Hardware
• Software

By Hardware

• Central Processing Unit
• Graphics Processing Unit
• Application-Specific Integrated Circuit
• Field Programmable Gate Array

By Software

• Mining Software
• Exchange Software
• Wallet
• Payment
• Others

By Process

• Mining
• Transaction

By Type

• Bitcoin
• Bitcoin Cash
• Ethereum
• Litecoin
• Ripple
• Others

By End-use

• Banking
• Gaming
• Government
• Healthcare
• Retail & E-commerce
• Trading
• Others

By Companies

• Bitmain Technologies Ltd. (Beijing, China)
• Xilinx, Inc. (California, U.S.)
• Intel Corporation (California, U.S.)
• Advanced Micro Devices, Inc. (California, U.S.)
• Ripple Labs, Inc. (California, U.S.)
• Bitfury Group Limited. (Amsterdam, U.K.)
• Ledger SAS (Paris, France)
• Nvidia Corporation (California, U.S.)
• BitGo (California, U.S.)
• Xapo (Zürich, Switzerland

Overview of the regional outlook of the Cryptocurrency Market:

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Reasons to Purchase this Report:

• Qualitative and quantitative analysis of the market based on segmentation involving both economic and non-economic factors;
• Provision of market value (USD Billion) data for each segment and sub-segment;
• Indicates the region and segment that is expected to witness the fastest growth and to dominate the market;
• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the market's dominance by region;
• Analysis by product/service type
• Competitive landscape that includes the market ranking of the top competitors, as well as new service/product launches, collaborations, business expansions, and acquisitions of companies featured during the previous five years
• Extensive company profiles with business overview, company insights, product benchmarking, and SWOT analysis for the leading market players
• The current and future market outlook of the industry in light of recent developments (which include growth opportunities and drivers as well as challenges and restraints of both emerging and developed regions)
• Includes an in-depth analysis of the market from multiple perspectives using Porter's five forces analysis Provides market insight across the Value Chain
• Market dynamics situation, as well as development potential for the market in the coming years
• 6-month post-sale analyst assistance

Frequently Asked Questions-

What is the CAGR of Cryptocurrency Market?

The Cryptocurrency Market is growing at a CAGR of 12.2% During Forecast Period.

What are the key Type of Cryptocurrency Market?

Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Ripple, Others

What are the key End-use of Cryptocurrency Market?

Banking, Gaming, Government, Healthcare, Retail & E-commerce, Trading, Others

Who are the key players in Cryptocurrency Market?

Bitmain Technologies Ltd. (Beijing, China), Xilinx, Inc. (California, U.S.), Intel Corporation (California, U.S.), Advanced Micro Devices, Inc. (California, U.S.), Ripple Labs, Inc. (California, U.S.), Bitfury Group Limited. (Amsterdam, U.K.), Ledger SAS (Paris, France), Nvidia Corporation (California, U.S.), BitGo (California, U.S.), Xapo (Zürich, Switzerland)