Decentralized Application Development (DApps) Market Size (2022-2027)
The Decentralized Application Development (DApps) Market was valued at $25.63 billion in 2021 and is estimated to grow at a CAGR of 56.1 percent to $ 70.82 billion by 2027. 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.
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.
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.
In terms of revenue, EOS blockchain topped the market in 2021, 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.
In 2021, the gambling category has the biggest market share of 59.9% of the Dapps Development market. In 2021, 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.
In terms of revenue, the E-Commerce Industry led the market in 2021 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.
In 2021, 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 2021, 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
Notable Development in DApps Market
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.
Chapter 1. Global Decentralized Application Development (DApps) Market – Scope & Methodology
1.1. Market Segmentation
1.3. Research Methodology
1.4. Primary Sources
1.5. Secondary Sources
Chapter 2. Global Decentralized Application Development (DApps) Market – Executive Summary
2.1. Market Size & Forecast – (2022 – 2027) ($M/$Bn)
2.2. Key Trends & Insights
2.3. COVID-19 Impact Analysis
2.3.1. Impact during 2022 - 2027
2.3.2. Impact on Supply – Demand
Chapter 3. Global Decentralized Application Development (DApps) Market – Competition Scenario
3.1. Market Share Analysis
3.2. Product Benchmarking
3.3. Competitive Strategy & Development Scenario
3.4. Competitive Pricing Analysis
3.5. Supplier - Distributor Analysis
Chapter 4. Global Decentralized Application Development (DApps) Market Entry Scenario
4.1. Case Studies – Start-up/Thriving Companies
4.2. Regulatory Scenario - By Region
4.3 Customer Analysis
4.4. Porter's Five Force Model
4.4.1. Bargaining Power of Suppliers
4.4.2. Bargaining Powers of Customers
4.4.3. Threat of New Entrants
4.4.4. Rivalry among Existing Players
4.4.5. Threat of Substitutes
Chapter 5. Global Decentralized Application Development (DApps) Market - Landscape
5.1. Value Chain Analysis – Key Stakeholders Impact Analysis
5.2. Market Drivers
5.3. Market Restraints/Challenges
5.4. Market Opportunities
Chapter 6. Global Decentralized Application Development (DApps) Market – By Type
Chapter 7. Global Decentralized Application Development (DApps) Market – By Category
Chapter 8. Global Decentralized Application Development (DApps) Market – By End User Industry
Chapter 9. Global Decentralized Application Development (DApps) Market- By Region
8.1. North America
8.4. Rest of the World(Middle East, Africa, and South America)
Chapter 9. Global Decentralized Application Development (DApps) Market – Company Profiles – (Overview, Product Portfolio, Financials, Developments)
9.1. Company 1
9.2. Company 2
9.3. Company 3
9.4. Company 4
9.5 Company 5
9.6. Company 6
9.7. Company 7
9.8. Company 8
9.9. Company 9
9.10. Company 10
Primary & Secondary Sources to Collect & Validate Data
Utilization of Both Top Down & Bottom Up Approach
Holistic Research Methodology
Scope & Introductory Research
In the initial stage of research, the scope for market is defined. In order to better understanding of the market, secondary focus is on different segmentations of the market. Preliminary research involves identifying key data points related to the market under consideration to estimate the market sizes to the best extent.
Based on the scope of the market and the key data points, a number of secondary sources are considered. This data collection stage consists of a team of analysts who gather data from various secondary resources, accessing proprietary databases and primary research by reaching out to key market participants and opinion leaders.
At this stage, collected data using several sources is arranged in structured format. The sources include industry participants, in-house models, key opinion leaders in the market ecosystem and databases. Historical data trends are established at this point, and compared to the current scenario. Based on the macro- and micro-factor prevailing in various geographies, proprietary data models are used to analyze key market countries. Key players in this market are listed based on their capabilities in revenue, sales, and development. The study also involves the identification of companies in the category of 'new entrants' and their potential effects on the market.
At this stage, the analyst team moves on to understand how the market has changed over the years. The total size of the market is gathered after an study of different business segments and end-users is done. An impact research is also done to see what factors will/may influence the market in the years ahead. The effect of various variables on the industry is often taken into account when forecasting market sizes.
Data verification is conducted at all research levels, however this stage is dedicated to more rigorous checking of the data points. At this stage, the estimated data is triangulated with company revenues and checked with industry experts including several senior executives and key opinion leaders in the market. The data is then summarized, and the findings are derived from the same for the report.
Quality Assurance & Report Preparation
Holistic research methodology is followed with combination of Top Down and Bottom Up approach to undertake the estimation and forecasting task in order to ensure quality of data. At this stage of the research process, a dedicated QA team checks the data and approves after several predefined checks. Each section is checked and questioned to make the report accurate and reliable. In case of discrepancy, a team of analysts reviews the issue, and the whole process is repeated again. That significantly improves the report's quality. After approval, all the parts of the report are brought together and is formatted by highly trained team thus making it ready to dispatch.