Global Cryptocurrency Market Size, Share, and Forecast, 2028

Industry Insights

[192+ Pages Research Report] According to Facts & Factors, The global cryptocurrency market was worth approximately USD 800 Million in 2020 and is expected to grow to approximately USD 5200 Million by 2028, with a compound annual growth rate (CAGR) of approximately 29.5% over the forecast period. The report explores the cryptocurrency market’s drivers & restraints and the impact they have on the demand during the projection period. In addition, the report analyses emerging opportunities in the cryptocurrency market.

Cryptocurrency Market: Overview

Cryptocurrencies are digital assets that are created using computer networking software and allow for secure exchange and ownership. The term "cryptocurrency" refers to the cryptographic techniques that developers have implemented to prevent fraud.

Individual cryptocurrency units are referred to as tokens or coins, depending on how they are utilized. Some are meant to be units of exchange for commodities and services, while others are for value storage, and yet others are primarily intended to aid in the operation of computer networks that conduct more complex financial operations. Bitcoin and the majority of other cryptocurrencies are underpinned by blockchain technology, which retains a tamper-resistant history of transactions and keeps a record of who owns what. Public blockchains are typically decentralized, which means they do not have a centralized authority like a bank or government.

Unlike the price of transferring funds from a mobile wallet to a bank account, there is little or no transaction cost for cryptocurrencies. Transactions can be completed day or night, and there are no restrictions on purchases or withdrawals. Moreover, unlike opening a bank account with verification and other procedures, anyone can use cryptocurrencies. Overseas, cryptocurrency transactions are also more efficient than wire transfers. Money is sent from one location to another by wire transfer in roughly half a day. Transactions with cryptocurrency are completed in seconds to minutes.

Cryptocurrency Market: Growth Drivers

The growing demand for clarity in the payment service is anticipated to propel the global cryptocurrency market forward. The cryptocurrency market will grow rapidly in the coming years as a result of enhanced information accessibility and payment independence in insurance, financial services, banks, and other economic sectors. Using cryptocurrencies in banking has many advantages, including the ability to transparently send and receive payments and secure storage of customer information for future use.

Additionally, new approaches to distributed blockchain technology are expected to reduce the need for organizational-specific solutions while allowing multiple stakeholders to share payments seamlessly across the enterprise. These practices increase supply chain transparency, contributing to environmental and other crime prevention efforts. This increases the likelihood of cryptocurrency adoption in the future.

The untapped potential of emerging markets is projected to drive further growth in the global cryptocurrency market. Developing countries provide a significant opportunity for cryptocurrencies to expand their activities and provide easier access to funds and financial services. As the most famous of these cryptocurrencies, Bitcoin has already helped many people and businesses grow and prosper as a source of income. The economy is gradually responding to these demands, and cryptocurrencies have great potential to meet them. Changing demographics, growing consumption, and a willingness to accept new technologies such as blockchain, IoT, and others create an appealing potential for cryptocurrencies in developing nations.

Cryptocurrencies are being adopted by a growing number of organizations in a variety of industries, from major tech companies to airlines, allowing people to use them as an official means of payment for their products and services. This, in turn, is projected to boost the global cryptocurrency market further.

Segmentation Analysis

The global cryptocurrency market is segregated into a category, element, method, end-user analysis, and region.

By category, the market is divided into bitcoin, ripple, ethereum, dashcoin, litecoin, and others. Among these, bitcoin has a significant market share and is likely to maintain this trend over the forecast period. By elements, the market is classified into software and hardware. Hardware is the most common component employed in the cryptography market. Furthermore, the hardware sector is anticipated to maintain its dominance in the next years.

By methods, the market is divided into mining and transactions. The mining industry accounts for a sizable portion of the whole cryptocurrency market. The mining sector is expected to grow profitably in the next years. By end-user analysis, the market is segregated into banking, stock market & virtual currency, real estate, and others. The stock market & virtual currency led the market with over USD 500 million, and it is expected to rise in the coming years.

Report Scope

Regional Landscape

Europe is predicted to have a considerable market share and continue to be dominant in the next few years. Germany is expected to provide a large part of the cryptocurrency market in Europe. The presence of a large number of mining pools, as well as the increasing use of digital currency by various dealers, are factors boosting the European cryptocurrency market. Canada and the United States are the countries in North America that are progressively adopting cryptocurrencies. The cryptocurrency market is growing in Asia Pacific countries such as China, Japan, and Singapore.

In 2020, the UK cryptocurrency trading software market generated USD 7 million in revenue. The increased need for trading software is being driven by the need for increased flexibility and security in cryptocurrency transactions. The software platform includes strong encryption mechanisms and sophisticated computing technologies such as artificial intelligence. This further enables businesses or individuals to manage the purchase and selling of a certain cryptocurrency. The platform's automated systems and math code are profitable business solutions.

In Canada, bitcoin accounted for 30.4% of the global cryptocurrency market share in 2020 and is expected to grow exponentially. The Bitcoin cryptocurrency uses peer-to-peer technology to manage emissions and transactions. Key factors, including fast P2P transactions, a global payment ecosystem and low processing costs, have contributed to Bitcoin's widespread adoption. Transactions made with this cryptocurrency are secured by cryptographic signatures and PoW power. The majority of consumers and some businesses in the market are investing in bitcoin, which helps generate more revenue in the market.

In Japan, the retail end-use segment is expected to grow during the forecast period. The widespread use of cryptocurrencies, favorable government structures, and trading software providers contribute to market value. Asia Pacific region accounted for more than 22% of the global cryptocurrency market in 2020 and is projected to grow exponentially over the forecast period. The high volume of cryptocurrency trading and its acceptance as a payment method is driving market demand. Additionally, the region’s advantageous digital infrastructure can help expand the market.

Recent Development

• January 2020 - Binance.com has acquired WazirX, a Bitcoin exchange based in Mumbai, India. With this acquisition, Binance.com is emphasizing its business portfolio in India. Binance.com is patented on the Fiat Gateway platform and integrates WazirX's peer-to-peer (P2P) engine to facilitate the trading of Binance.com digital currencies when buying tether or USDT.
• March 2021 - Visa Inc. aims to introduce a new payment service by processing cryptocurrency payments directly on the Ethereum blockchain. With this initiative, the company aims to embrace cryptocurrency as a payment method for the financial industry.

Competitive Landscape

Some of the important players in the global cryptocurrency market are -

• Advanced Micro Devices Inc.
• NVIDIA Corporation
• BitFury Group Limited
• Xilinx Inc.
• Intel Corporation
• Microsoft Corporation
• AlphaPoint Corporation
• Coinbase Ltd.
• BitGo
• BTL Group Ltd
• Ripple Labs Inc.

The global cryptocurrency market is segmented as follows:

By Category Segment Analysis

• Bitcoin
• Ripple
• Ethereum
• Dashcoin
• Litecoin
• Others

By Elements Segment Analysis

• Software
• Hardware

By Methods Segment Analysis

• Mining
• Transactions

By End-User Segment Analysis

• Banking
• Stock Market & Virtual Currency
• Real Estate
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
    • Rest of Europe

• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Southeast Asia
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America