Blockchain Testing Services Market Size (2023 - 2030)

The Blockchain Testing Services Market was valued at USD 4.96 billion in 2022 and is projected to reach USD 52.18 billion by 2030. The market is anticipated to expand at a CAGR of 34.2% over the forecast period. The growing demand for supply chain transparency across verticals, the need to minimize risk and complexity, and the increased efficacy of blockchain solutions are the main drivers of the market for blockchain as a service. Additionally, Blockchain as service providers would have profitable potential due to the Internet of Things, Blockchain, and growing government efforts.

INDUSTRY OVERVIEW

Blockchain technology is becoming increasingly popular among businesses as a means of enhancing data management, security, and storage. As a result, it is crucial to make sure that any applications created for the blockchain network have undergone extensive testing. The systematic assessment of the blockchain's many functioning components is known as blockchain testing (e.g., smart contracts). In contrast to standard software testing, blockchain testing requires several elements, including blocks, mining, transactions, wallets, and so forth, all of which call for specialised testing tools. Testing for blockchain applications may help with everything from system performance to blockchain application security. The optimal strategy for blockchain testing includes the complete environment, according to Santu Maity, an enterprise architect at IBM. This includes web and mobile applications built on the blockchain that communicates with the functional elements of the system, such as an API, smart contracts, and nodes.

The expansion of the market is anticipated to be fuelled by the rising number of technological advances and advancements around the world, which have created a variety of commercial opportunities (2021-2030). The launch of 5G in conjunction with other technologies like digital reality, which includes augmented reality (AR), virtual reality (VR), mixed reality (MR), or the rapidly expanding Internet of Things (IoT), are establishing new trends for the constantly developing IT and telecom business. By 2023, there will likely be 3.4 billion cellular IoT connections worldwide. The global market for blockchain testing services is anticipated to expand significantly over the next 6-7 years as a result of the digital revolution occurring across several businesses, including R&D & Testing, Information Technology (IT), Telecom, and the Internet. Compared to 2016, the exports of goods related to information and communication technology (ICT) increased by 11.51 per cent in 2017. By 2023, it is predicted that 1 billion upgraded mobile broadband subscribers would be supported by 5G connections. Lack of testing tools, however, is among the biggest problems. Each blockchain framework has a limited number of testing tools accessible right now, thus choosing the incorrect one can lead to problems.

COVD-19 IMPACT ON THE BLOCKCHAIN TESTING SERVICES MARKET

Following the COVID-19 outbreak, blockchain is anticipated to offer several security benefits, including decentralisation, encryption, and cryptography. The COVID-19 epidemic has raised the demand for eCommerce. Blockchain as a service has seen an increase in acceptance among SMEs as emerging technologies like AI, ML, and blockchain are starting to drive company innovation initiatives. After the COVID-19 epidemic broke out, businesses are now able to update and streamline their processes thanks to the development of fintech and blockchain technology. This could result in a company's rise in contactless transactions and newly designed financial services. The pharmaceutical sector is anticipated to benefit greatly from the blockchain. The technology is a remedy for the logistical problems associated with administering a COVID-19 vaccination. For the correct distribution of the COVID-19 vaccine, blockchain is being used to maintain accurate records regarding vaccine storage and maintenance. The delivery of a COVID-19 vaccine has logistical difficulties, which the technology is thought to address. In order to maintain accurate records of vaccine maintenance and storage before distribution, blockchain technology is being employed for the correct distribution of the COVID-19 vaccine.

MARKET DRIVERS: 

Rising investment and innovation in blockchain technology is the key driver of the industry growth

With significant investments in blockchain technology from both public and private organisations like banks and financial institutions, blockchain services are becoming more and more important. With its decentralised uses, blockchain technology has the potential to revolutionise several industries, including cross-border payments, remittances, exchanges, internet banking, trade finance, Know Your Customers (KYC), risk, and compliance. Among the KRW 5 trillion budget for economic growth through innovation, the South Korean government allocated KRW 1 trillion for blockchain development in 2019. South Korea accounted for 30% of all bitcoin trade worldwide. The need for blockchain services will expand as blockchain technology is used in more companies and services are needed to manage

It offers businesses a reliable and secure infrastructure that is going to expand the market

Blockchain testing guarantees that every entity connected to a blockchain network has been suitably approved for use. Consequently, it gives businesses a safe and useful infrastructure. Blockchain testing supports the delivery of high-quality goods, enhancing customer experience. In a decentralised system when money is involved, it also eliminates defects to avoid financial harm.

MARKET RESTRAINTS:

The market will suffer from a lack of availability of more testing tools

The lack of testing tools is one of the biggest obstacles. Because there are now few testing tools available for each blockchain framework, utilising the incorrect tool can lead to issues.

The inability to conduct proper load testing and performance analysis results in little to no information about how well blockchain apps function in specific scenarios.

Lack of industry experience in the blockchain space will have a detrimental effect on the market

The blockchain ecosystem's lack of professional experience is another problem. Blockchain technology hasn't been widely adopted by software developers because it's still a young concept in the computer world. Testing a strategy presents even another difficulty. Blockchain testing requires in-depth knowledge of the technology's operation.

BLOCKCHAIN TESTING SERVICES MARKET REPORT COVERAGE:

BLOCKCHAIN TESTING SERVICES MARKET - BY ENTERPRISE SIZE

• Large Enterprises

• Small and Medium-sized Enterprises (SMEs)

Based on the enterprise size the blockchain testing services market is segmented into Large Enterprises and Small and Medium-sized Enterprises (SMEs). Among these, the SMEs category will expand at a faster CAGR throughout the forecast period. SMEs favour cloud-based networking solutions over on-premises networking investments because they are more adaptable and less expensive. The adoption of blockchain testing services is anticipated to be sped up by SMEs using the pay-as-you-go approach to flexibly manage their IT infrastructure. Additionally, the demand for effective customer data protection, cost savings, and competitive advantage enables quick responses and prompt decisions, which are anticipated to fuel the expansion of the blockchain testing service market in SMEs. The demand for blockchain testing services in SMEs is also anticipated to increase due to factors like the need for effective customer data protection, cost-cutting, gaining a competitive advantage, and quick responses and prompt choices.

In 2021, the market was dominated by big organisations, which accounted for more than 68.0 per cent of worldwide revenue. Blockchain testing service is becoming more and more in demand among large businesses operating in industries like insurance, financial services, healthcare, and supply chain as they work to digitalize their operations and are widely using blockchain technology. Blockchain technology is being used by big businesses like BBVA, Intesa Sanpaolo, Barclays, and HSBC to improve their KYC and finance operations. They have access to enough funds and resources to accept newly released technology from the market.

BLOCKCHAIN TESTING SERVICES MARKET – BY END-USE

• Financial Services

• Government

• Healthcare

• Media & Entertainment

• Retail

• Transportation & Logistics

• Travel

• Others

Based on the enterprise size the blockchain testing services market is segmented into Financial Services, Government, Healthcare, Media & Entertainment, Retail, Transportation & Logistics, Travel and Others. In 2021, the financial services industry led the market and generated more than 38.0 per cent of worldwide revenue. Blockchain technology is used by financial services to manage commercial financial transactions. The demand for blockchain technology in the financial services industry is being driven by its ability to conduct safe and timely transactions. Due to considerations including increasing cryptocurrencies, high compatibility with the industrial ecosystem, quick transactions, Initial Coin Offerings (ICOs), and lower total cost of ownership, the technology is predicted to be widely utilised in this sector.

BLOCKCHAIN TESTING SERVICES MARKET - BY REGION

• North America

• Europe

• The Asia Pacific

• Latin America

• The Middle East

• Africa

By region, the Enhanced water market is grouped into North America, Europe, Asia Pacific, Latin America, The Middle East and Africa. North America is anticipated to hold the largest market share during the anticipated time frame. The expansion in this area is primarily due to the increase in blockchain projects. The US had about 2000 active blockchain projects between 2014 and 2017, according to the China Academy of Information and Communications Technology (CAICT). Additionally, more than 500 businesses are presently providing blockchain services in the United States. Additionally, the US and Canadian governments are concentrating on investing in the adoption of blockchain services in their public utilities, including airports, banks, defence & military, and others. The U.S. government contributed about USD 2.51 billion to assist various blockchain technology firms. In this industry, the Asia-Pacific market is anticipated to experience the greatest CAGR growth. Due to the existence of significant key players such as BitSE, Huawei Service (Hong Kong) Co., Limited, and others, this region has experienced growth. Around 298 businesses in China are currently active and using blockchain technology and services, according to the China Academy of Information and Communications Technology (CAICT). Additionally, increasing government and big organisation funding of initiatives based on blockchain services are anticipated to fuel market expansion shortly.

Due to the existence of key competitors operating in this market, Europe maintained a commanding lead in 2021. Major market participants are funding the creation of blockchain-related technology. For instance, in January 2018, important players in the United Kingdom committed close to USD 19 million to the creation of cutting-edge goods and services based on emerging tech domains like blockchain. In addition, it is predicted that Latin America and the Middle East and Africa will have rapid growth. A growing number of government initiatives to invest in the creation of blockchain services for oil and non-oil industries, as well as recent technology breakthroughs in these regions, are responsible for this increase.

BLOCKCHAIN TESTING SERVICES MARKET - BY COMPANIES

Some of the major players operating in the Blockchain Testing Services Market include:

1. CIGNITI

2. AUGUSTA HITECH

3. TESTFORT

4. QUALITEST

5. TESTINGXPERTS

6. WHITEBLOCK

7. SOFTEQ

8. THINKSYS

NOTABLE HAPPENING IN THE BLOCKCHAIN TESTING SERVICES MARKET

• COLLABORATION- - MIMOS and Oracle joined together in June 2019 to use blockchain technology for improved trust and transparency.

• COLLABORATION- In October 2019, Quantoz, a startup firm based in the Netherlands, and Tech Mahindra worked together strategically. This partnership has successfully developed and delivered blockchain-as-a-service for use in applications including online payments, smart contracts, and others.