Smart Contracts Market Forecasts to 2030 – Global Analysis By Type (Smart Legal Contracts, Application Logic Contracts (ALC), Decentralized Autonomous Organizations (DAO) and Distributed Applications (DApps)), Blockchain Type (Public, Hybrid and Private),

Smart Contracts Market Forecasts to 2030 – Global Analysis By Type (Smart Legal Contracts, Application Logic Contracts (ALC), Decentralized Autonomous Organizations (DAO) and Distributed Applications (DApps)), Blockchain Type (Public, Hybrid and Private), Platform, Enterprise Size, Application and By Geography

According to Stratistics MRC, the Global Smart Contracts Market is accounted for $1.97 billion in 2023 and is expected to reach $8.60 billion by 2030 growing at a CAGR of 23.4% during the forecast period. A smart contract is a computer programme that automatically performs contractual tasks without involving third parties. They are typically deployed on blockchain networks, ensuring transparency, immutability, and security by storing contract code and transaction data across a decentralised network of computers. They find application in various industries like finance (automating payments and loans), supply chain (tracking goods and verifying authenticity), real estate (automating property transfers), and more.

According to a new report from Alchemy, the number of smart contracts installed on ethereum jumped almost 300% in 2022 compared to 2021.

Market Dynamics:

Driver:

Blockchain technology advancements

Blockchain Technology Advancements serve as a pivotal driver in the Smart Contracts Market. Ongoing enhancements in blockchain technology, such as improved scalability, interoperability, and security features, bolster the functionality and feasibility of smart contracts. These advancements address previous limitations, enabling faster transaction processing, reducing costs, and enhancing the overall efficiency of smart contracts. As a result, there is an increasing demand for market growth.

Restraint:

Security vulnerabilities


Security vulnerabilities in smart contracts present a significant restraint by exposing potential loopholes in code that malicious actors can exploit. These vulnerabilities, including coding errors or flawed logic, allow unauthorised access, manipulation, or loss of assets stored within contracts. Given the immutable nature of deployed smart contracts, rectifying these flaws post-deployment becomes complex. Breaches compromise trust, financial assets, and user confidence in the technology, impeding widespread adoption.

Opportunity:

Advancements in smart contract development

Advancements in smart contract development offer a pivotal opportunity by revolutionising their capabilities and reliability. Evolving programming languages, robust security protocols, and innovative tools refine smart contract creation, enhancing their resilience against vulnerabilities. Moreover, these advancements foster broader adoption, inspire novel use cases, and expand smart contracts' potential across industries. The dynamic evolution of development practices encourages innovation, driving the smart contract market towards greater efficiency, reliability, and versatility.

Threat:

Interoperability issues

Interoperability issues pose a significant threat to the smart contract market by inhibiting seamless communication and interaction between disparate blockchain networks. The lack of standardised protocols and compatibility among various smart contract platforms restricts their integration and cross-platform functionality. This limitation obstructs the potential for widespread adoption and hampers the scalability of smart contracts, hindering their ability to leverage the benefits of multiple blockchain ecosystems.

Covid-19 Impact

The COVID-19 pandemic spurred the Smart Contracts Market's growth by accelerating digital transformation. Smart contracts, offering contactless and transparent transactions, gained traction across healthcare, supply chains, and finance sectors. The crisis highlighted the importance of resilient, remote-operating systems, fast-tracking adoption. As a result, the pandemic acted as a catalyst, driving wider acceptance and integration of smart contracts into various industries within an evolving digital landscape.

The ethereum segment is expected to be the largest during the forecast period

The ethereum segment is estimated to hold the largest share. Ethereum is a decentralized blockchain platform enabling the creation and execution of smart contracts. Its Turing-complete language, Solidity, empowers developers to code complex smart contracts, facilitating a wide array of functionalities, from tokenization and decentralized finance (DeFi) to gaming and supply chain solutions. Moreover, ethereum's prominence drives innovation and adoption within the broader Smart Contracts Market, influencing the evolution of decentralized applications and blockchain-based solutions.
The healthcare segment is expected to have the highest CAGR during the forecast period

The healthcare segment is anticipated to have lucrative growth during the forecast period. Smart contracts offer transformative solutions in healthcare by enhancing data security, interoperability, and patient care. These contracts facilitate secure and transparent management of patient records, ensuring privacy compliance and seamless sharing among authorized entities. Furthermore, automating insurance claims processing, facilitating transparent drug traceability in supply chains, and enabling patient-centric applications for appointments and prescriptions are among the varied applications.

Region with largest share:

Asia Pacific commanded the largest market share during the extrapolated period due to technological advancements, increasing digitalization, and embracing blockchain innovation. The region has rapidly evolving economies, favourable government initiatives, and a burgeoning tech-savvy population which further fuels the market's expansion. Industries such as finance, supply chain, and healthcare leverage smart contracts for automation and transparency. The region's dynamism, coupled with a burgeoning blockchain ecosystem and growing interest in decentralized applications, positions the Asia Pacific Smart Contracts Market as a pivotal hub for blockchain-driven innovations and market growth.

Region with highest CAGR:

North America is expected to witness profitable growth over the projection period due to robust blockchain ecosystems, strong investments in research, and a mature tech infrastructure. Regulatory support, increased awareness, and a thriving startup culture contribute to the market's evolution. Moreover, North America's tech leadership, coupled with a proactive approach towards blockchain adoption, positions the region as a key driver and innovator in the Smart Contracts Market.

Key players in the market

Some of the key players in the Smart Contracts Market include IBM, Oracle, Amazon, Infosys, Tata Consulting Services, Waves Technologies, Chainlink, Solana, Sharedeum Foundation, Algorand, GoCoin, Stratis, Avalanche, Monax Industries, Blockstream Corporation Inc., ScienceSoft USA Corporation, 4soft, Innowise Group, BitPay, Inc. and Chain, Inc.

Key Developments:

In October 2023, Infosys enters into a collaboration deal with automotive marquee Smart Europe GmbH. The collaboration is aimed towards making Direct to Customer of the automotive company seamless and more customers friendly.

In January 2021, IBM and Covalent, a fashion brand recently launched by Newlight Technologies, announced that Covalent is using IBM Blockchain technology on IBM LinuxONE so consumers can track the carbon footprint and supply chain of its sustainable, AirCarbon-based fashion accessories, from eyewear to handbags.

Types Covered:
• Smart Legal Contracts
• Application Logic Contracts (ALC)
• Decentralized Autonomous Organizations (DAO)
• Distributed Applications (DApps)

Blockchain Types Covered:
• Public
• Hybrid
• Private

Platforms Covered:
• Ethereum
• BNB Chain
• Cardano
• Polkadot
• Other Platforms

Enterprise Sizes Covered:
• Large Enterprises
• Small and Medium Enterprises(SMEs)

Applications Covered:
• BFSI
• Healthcare
• Government
• Supply Chain
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
JapanChinaIndiaAustralia
New Zealand
South Korea
Rest of Asia Pacific• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances