Decentralized Application Development (DApps) Market Size (2023 - 2030)

The Decentralized Application Development (DApps) Market was valued at $25.63 billion in 2022 and is estimated to grow at a CAGR of 56.1 percent to $ 70.82 billion by 2030. The worldwide DApps development Market is being boosted by the increased need for rapid transaction processes and the benefits of DApps such as transparency, dependability, flexibility, and scalability.

In today's digital world, users hope for greater security and privacy while making online purchases. Due to their own data storage capacity at each node, DApps using blockchain technology lessen fraud threats. DApps' cheap development costs are also likely to drive industry expansion.Existing centralised apps rely on user authentication, which is very straightforward given that it is regulated and authenticated by a certain authority. However, because DApps lack a defined organisation responsible for KYC verification, developing DApps is difficult. This disadvantage is expected to impede the expansion of the DApps industry.Dapps, or distributed applications, are programmes that employ blockchain as their underlying technology. Although the banking industry and cryptocurrencies took centre stage in the early days of blockchain's potential use, sentiments have since changed dramatically, and the momentum is now well-positioned to draw many non-financial industries along for the ride. eCommerce is one outstanding example of how Dapps have already begun to influence the industry due to its enormous potential. By 2023, blockchain in the retail industry is poised to increase at an annual rate of 81 percent.

MARKET DRIVERS

Simplified logistics and supply chain management helps boost DApps development market

Owing to DApps are decentralised, they help to simplify operations and improve logistics and supply chain efficiency. eCommerce business owners can quickly and effectively manage their inventory, without having to pay for additional inventory management and monitoring services. Dapps also eliminate clerical mistakes, product duplication, and fraud threats by preventing transaction data from being altered once it has been put into the ledger. RFID tags and IoT combine with Dapps to assist maintain track of things in real time from their conception to their current location.Smart contracts eliminate the need for middlemen such as attorneys or other third parties to execute tasks. Smart Contracts allow e-tailers and logistics businesses to engage into legally enforceable agreements that will dissolve if all of the agreed-upon requirements are not satisfied. The next big thing in eCommerce is a distributed ledger, which will allow for transparent documentation, lower prices, and more efficient route information. Without a question, the Internet of Things is a game-changer in logistics and supply chain, but it necessitates a high degree of security, which Dapps provide.

Need for Reliable Data Securityin E-commerce businesses steer way for dApps development market growth

Any centralised storage, such as the cloud, puts an e-commerce store's customer data exposed to hackers. Even the most well-encrypted systems might fall subject to hack assaults when considering the tips and methods utilised by today's current hackers. It's almost impossible to hack from a single point of entry with Dapps promoting a decentralised environment. Hackers must alter transactional data to cause a double expenditure. However, even the tiniest alterations to a block will change its cryptographic hash, requiring hackers to make changes to the following block to integrate the new hash. However, as soon as they do so, they must modify the next block, and so on until the last block is changed.

Reduced operational cost with use of DApps helps its market growth

Every year, eCommerce firms spend large sums of money to third parties for payment and transaction confirmation. As Dapps do not include any payment procedures, retailers do not have to pay a processing charge. This increases the cost-effectiveness of eCommerce enterprises and allows them to pass on the savings to customers in the form of better discounts. Forboth vendors and buyers, this is a win-win situation. According to a Santander FinTech research, distributed ledger technology may save $15 billion to $20 billion in yearly financial services infrastructure expenses due to cross-border payments, securities trading, and regulatory compliance by 2022.

MARKET RESTRAINTS:

Lack of trust in DApps stifle the market growth

The use of dApps is still in its early phases, it is experimental and subject to a variety of issues and unknowns. There are concerns about the apps' ability to scale properly, particularly if an app demands a lot of calculations and overloads a network, producing network congestion.

Lack of User-Friendly Interface hampers the growth of DApps Development Market

Another challenge is the capacity to create a user-friendly interface. Most users of conventional centralised institution-developed applications have an expectation of ease-of-use that motivates them to utilise and interact with the app. To persuade consumers to switch to dApps, developers will need to deliver an end-user experience and degree of performance that rivals that of well-known and established apps.

DECENTRALIZED APPLICATION DEVELOPMENT MARKET REPORT COVERAGE:

Global DApps Development Market- By Type:

• EOS

• TRON

• Ethereum

• IOST

• Steem

• Neo

• Others

In terms of revenue, EOS blockchain topped the market in 2022, with a CAGR of 56.2 percent. The EOS market is being driven by rising demand for various gaming models and unique features of EOS such as the POS (Proof-of-Stake) mechanism and the removal of virtual transaction costs. Furthermore, the platform is incredibly scalable, and EOS can handle the most important credit cards, such as Visa, in terms of transactions per second. As a result, it provides the appropriate foundation for Dapp developers. Furthermore, EOS hosts the most popular DApps, and TRON is classified as high-risk and gambling. EOS is dominating the market during the projectd term due to these benefits and qualities.

Global DApps Development Market- By Category:

• Exchange

• Gambling

• High-risk

• Game

• Others

In 2022, the gambling category has the biggest market share of 59.9% of the Dapps Development market. In 2022, the DApps gambling sector is poised to develop significantly, with a market share of 49.7%. The DApps gambling business is being driven by the advantages of DApps gambling over traditional online gambling in terms of flexible bets, fund protection, and flexible terms and conditions. Furthermore, blockchain technology allows DApps to gamble directly between two people without the need for a gambling website, which is predicted to boost industry growth.

Global DApps Market- By End User Industry:

• Ecommerce

• Healthcare

• Transportation

• Others

In terms of revenue, the E-Commerce Industry led the market in 2022 with a 46.5% share. Consumers now dislike shipping and payment procedure delays. Third-party APIs, such as banks or other third parties, are used in the traditional e-commerce payment process. Organizations are looking into apps that can eliminate third parties and centralised banks from the payment process, making it more efficient and speedier for customers. DApps' peer-to-peer payment procedure, which reduces payment failures and improves security, is also likely to drive market development. Growth due to DApps' features such as safety analysis and clinical trials, the healthcare industry will see considerable growth, with a market share of 23.6 percent in the anticipated term. Patients can also utilise Internet of Things-enabled health gadgets to collect and exchange data with medical professionals in real time. Rather of collecting patient data, Dapps can contain access limits such as who is permitted to see health data, even if the data is saved in an electronic health record.

Global dApps Development Market- By Region:

• North America

• Europe

• Asia-Pacific

• Rest of the World(Middle East, Africa and South America)

In 2022, North America had the greatest market share of 36.8% in the DApps Development market. The United States, Canada, and Mexico accounted for the biggest market share in 2022, owing to the fast adoption of blockchain technology and rising demand for online payment, digital identity detection, and smart contracts. Due to the increased activities by research institutes and the government on blockchain technology in the BFSI sector, the Asia Pacific DApps market is estimated to develop significantly.

Key Market Players

1. Solulabs

2. Consensys

3. Blockchain Intelligence Group Inc

4. Arctouch Inc

5. Open ledger

6. Ionixx Technologies Private Ltd

7. Hyperlink Infosys

8. Perfectial Group

9. Fueled Technologies

Notable Development in DApps Market

• ConsenSys announced the acquisition of Quorum, an Ethereum blockchain technology company founded by JP Morgan, in August 2022. This purchase will enable ConsenSys to provide Quorum with a comprehensive range of support and facilities, as well as speed up the adoption of features and services such as digital document management and asset management.

• The number of users using decentralized applications, or DApps, increased by 396 percent to 2.4 million. This is only 5.8% lower than the same level of user activity saw in Q4 2022.

• On April 2022, Leap, a cryptocurrency platform, has secured $3.2 million in a round led by CoinFund, a blockchain-focused investment firm, and Pantera Capital. Leap is a non-custodial Terra wallet that combines dApps, staking, DeFi, NFTs, and other features into a single platform.

Impact of Covid-19 on Dapps Development Market

Owing to the recent Covid-19 epidemic, which has left people at home like never before, more online gaming will surely take place on a massive scale throughout the world. It will result in an increase in the use of in-game digital currencies and blockchain technology with DApps.