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Market Analysis

by David Mayer

published on Sep 27, 2018

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Report Overview:

NelsonHall's market analysis of the blockchain industry and trends consists of 79 pages. 

Who is this Report for:

NelsonHall’s “Blockchain Services” report is a comprehensive market assessment report designed for:

  • Sourcing managers investigating sourcing developments within blockchain and distributed ledger technology
  • IT and business decision makers exploring the benefits and inhibitors of blockchain as evidenced from the clients and vendor capability
  • Vendor marketing, sales and business managers developing strategies to target opportunities within blockchain
  • Financial analysts and investors specializing in the IT services and BPS sector

Scope of this Report:

  • This report analyzes the global market for blockchain and its constituent services. The report addresses the following questions:
  • What is the current and future market for blockchain technology and services?
  • What are the customer requirements and how are they changing?
  • What are the benefits/results that vendors have been able to achieve for their clients?
  • What services are customers buying from blockchain vendors?
  • What technologies and platforms are being utilized and what are the latest developments and trends emerging?
  • What is the size and growth of the blockchain market by geography?

What is the size of the blockchain I market by industry and which is seeing increased demand?

What are the vendor selection criteria, challenges and critical success factors for vendors targeting blockchain?

Additional topics include: industry-specific developments, trend identification, platform technology trends, and best practices in vendor selection and implementation 

Key Findings & Highlights:

NelsonHall's market analysis of the blockchain industry and trends consists of 79 pages.

The global blockchain market is worth $610m (estimated in 2018), with average CAGR of 94% through 2022. The United States, UK and Continental Europe, Japan, and South Korea are the largest and fastest-growing geos.

The market is quite young with providers still seeking leadership positions. Vendors are of three types in blockchain platform architecture: agnostic, monolithic, and bespoke. Agnostic vendors utilize a variety of platforms for blockchain, and allow the client needs to dictate which platform is chosen; they often have 4-6 preferred architectures with clearly defined use case guidelines for deploying each. Examples include Wipro, Infosys, TCS, and Tech Mahindra.

Monolithic vendors have focused their efforts on a single blockchain platform architecture and deploy it exclusively. They build their market vision around a strategy that fits the capability set of that architecture and have a significant degree of influence in steering the development of the platform to suit their needs. Examples include IBM and Digital Asset (both on Hyperledger Fabric)

Bespoke vendors have developed their own proprietary platform for blockchain/DLT; are not dependent on public platforms. They usually serve not just a single market, but a single use case within that market, as a specialty provider, and have complete autonomy over the platform and can change anything about it to better suit client needs. Examples include Symbiont. 

Table of contents:

Table of contents:

  • 1. Introduction
  • Blockchain Is No Longer a Speculative Technology
  • The Blockchain Technology Picture: Competing Standards, and a Long Tail of Specialized Platforms
  • Platforms in the Blockchain services space can be categorized along axes of open to permissioned, and flexible to purpose-built
  • Blockchain technology can be classified into quadrants
  • Quadrant I platforms are for secure, high-performance use cases
  • Quadrant II platforms are generally cryptocurrency applications
  • Quadrant III platforms are generally consumer noncoin applications
  • Quadrant IV platforms are enterprise blockchain breadth plays
  • 2. Changing Shape of the Blockchain Market
  • The current blockchain market is driven by cost and cycle time reduction, transparency and trust, and transaction audit security
  • Blockchain architecture and deployment process will change from a point solution to an ecosystem by 2022
  • The next jump (from point solution blockchain to ecosystem blockchain) will demand interoperability and business partnership
  • 3. Customer Requirements
  • Operating transparency, audit quality control, and cost reduction are among the top drivers for blockchain adoption
  • Blockchain is emerging as a component of digital transformation
  • Interoperability is a top topic of conversation for vendors and clients
  • The most common use cases for blockchain today are cross-border remittances, SCM/provenance, and invoice settlement
  • 3.1 Blockchain In-Use Case Studies
  • EY Implemented Blockchain to Achieve Daily Settlement in Microsoft’s Digital Content Royalty Payments
  • Objectives
  • Results
  • Atos Designs, Deploys Food Traceability Solution for Bureau Veritas
  • Objectives
  • Results
  • Wipro Constructs Blockchain for Waterborne Commodity Trading
  • Objectives
  • Results
  • Infosys Provides Airline With Blockchain Airworthiness Solution
  • Objectives
  • Results
  • IBM Assisted Maersk in Implementing Blockchain in Support of Shipping
  • Objectives
  • Results
  • Tech Mahindra Designs CBR Blockchain Platform for State Bank of India
  • Objectives
  • Results
  • 3.2 Blockchain Pilots and PoCs
  • ATOS Provides BFSI Client with Corporate Bond Issuance Blockchain
  • Objectives
  • Results
  • EY Deploys Tesseract Asset Management for German Auto Sharing
  • Objectives
  • Results
  • Infosys Addresses International Mobile Carrier’s International Roaming Challenges
  • Objectives
  • Results
  • Tech Mahindra Pilots Loan Origination Solution for Indian Bank
  • Objectives
  • Results
  • Wipro Readies GDPR Solution for EU Consumer Goods Firm
  • Objectives
  • Results
  • Virtusa Streamlines Commercial Loan Covenant Management
  • Objectives
  • Results
  • TCS Designs Blockchain Securities Settlement Platform for ABN AMRO
  • Objectives
  • Results
  • Capgemini Builds Policy Bidding Blockchain for Italian Insurance Brokerage
  • Objectives
  • Results
  • Mphasis Re-Imagines Mortgage Origination on Blockchain for Bank Client
  • Objectives
  • Results
  • IBM Manages Own Vendor Invoices on Blockchain Settlement Solution
  • Objectives
  • Results
  • NTT DATA Provides Interbank Reconciliation Solution for ABI
  • Objectives
  • Results
  • 4. Market Size and Growth
  • Global blockchain implementation & management market will grow at 94% CAGR to $8.6bn by 2022
  • ...with significant growth in U.S., U.K. & Continental Europe, Middle-East, Japan , South Korea
  • Banking and insurance lead the global blockchain market, followed by healthcare, manufacturing, energy & utilities, & logistics
  • Banking and insurance is the primary demand industry for blockchain deployment, and will remain so – along with healthcare and manufacturing – over our forecast period
  • Forecast assumptions: platforms become interoperable and consolidate; quantum computing nets out to a neutral impact
  • 5. Vendor Market Shares
  • IBM, Infosys, and Wipro lead SI blockchain market in revenues to date
  • 6. Vendor Offerings and Targeting
  • Blockchain solution delivery in 2018 is typically set up around a CoE with liaisons to the organization’s vertical and horizontal business units.
  • Use case definition is changing as vendors identify commonality of applications, with best practices usually ‘stored’ between the CoE and horizontal SBUs.
  • Vendors are of three types in blockchain platform architecture: agnostic, monolithic, and bespoke
  • AGNOSTIC VENDORS
  • MONOLITHIC VENDORS
  • BESPOKE VENDORS
  • Blockchain will increasingly Transition from PoCs to Production Deployments during 2018
  • Ethereum/Quorum Dominate Use Case Infrastructure, But Hyperledger and Corda are Gaining Ground
  • Ethereum and Hyperledger Fabric are the market share leaders for platforms in a long-tail market with many competitors.
  • By 2022, we forecast a more clearly-defined set of use-specific platforms with the combined Hyperledger family of project architectures leading the way; Hashgraph becomes commercially viable.
  • Market Sentiment increasingly favors Fabric, Corda, & Quorum Blockchain Platforms
  • The U.S. and EMEA dominate target geographies for service providers
  • BFSI, healthcare, manufacturing are most targeted verticals
  • IBM, Infosys, Tech Mahindra lead in Banking & Insurance use cases
  • IBM, Wipro, EY, Tech Mahindra lead in manufacturing use case diversity
  • Wipro, Infosys, TCS, NTT DATA lead in life sciences use case diversity
  • IBM, Wipro take lead in Energy & Utilities sector use case diversity
  • Tech Mahindra, NTT DATA, Infosys, EY lead in telecom & media use case diversity
  • Wipro, Tech Mahindra lead in public sector use case diversity
  • The Fortune 1000 is the primary target for blockchain vendors
  • Current blockchain-related M&A activity is dominated by technology companies, but we expect service provider M&A to pick up in 2019…
  • …with acquiring firms seeking to add specialized capabilities such as throughput acceleration, quantum computing-proofing, and AI
  • Vendor roadmaps focus on accelerator development, solution preconfiguration, interoperability, and partner ecosystem expansion
  • Moves to accelerate deployment, ease client concerns dominate roadmap initiatives
  • 7. Selection Criteria, Challenges, and Success Factors
  • Primary drivers of blockchain vendor selection are demonstrable improvements in security, transparency, and transaction processing speed
  • Vendor selection is strongly influenced by similarity of proven commercial deployments to new engagements and the provider’s vision for blockchain within digital transformation.
  • Principal challenges for vendors today are breadth and depth of solution experience by vertical market, horizontal process, and blockchain platform.
  • Downstream success for blockchain services vendors depends on their ability to connect multiple areas of the organization
  • Appendix I – Vendors Researched
  • Blockchain services vendors researched

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