The market for cryptocurrency is expanding rapidly as corporate users in the banking, financial services, & insurance (BFSI) sector and government offices are increasingly adopting cryptocurrencies. Digital currency which is not regulated by any central authority is referred to as a cryptocurrency. No bank is involved in the transactions of these currencies and a decentralized system is in place for checking and validating every transaction. The concept of cryptocurrency became famous after the launch of Bitcoin, following which different companies started launching new cryptocurrencies.
Since many retailers started accepting cryptocurrency as a mode of payment, the adoption of blockchain devices has also increased. Blockchain devices are designed for handling the blockchain technology transactions and work in the same way as blockchain technology, i.e. decentralized system or decentralized ledger. The primary application of the blockchain technology is cryptocurrency. As per a report , in 2019, the global blockchain devices market generated a revenue of 0.3% billion and is projected to reach $23.5 billion by 2030, advancing at a 48.7% CAGR during the forecast period (2020–2030). Blockchain devices are used for both personal and corporate applications; however, the larger demand for blockchain devices is predicted to be created for corporate applications during the forecast period.
Different types of blockchain devices are point of sales terminals, blockchain smartphones, crypto automated teller machines (ATMs), and crypto hardware wallets. Some other types are blockchain gateways and pre-configured devices. Out of these, the largest demand during 2014–2019 was created for crypto hardware wallets, which are going to be the most in demand in the coming years as well, particularly because of the growing cryptocurrency market. As the number of transactions and cryptocurrency users are increasing, the requirement for securing cryptocurrency is rising as well. The users can use software-based and hardware-based wallets for keeping cryptocurrency safe. The fastest growth in demand is expected to be witnessed by crypto ATMs during the forecast period.
Several industries that make use of blockchain devices are retail, BFSI, transportation & logistics, government, travel & hospitality, and some other industries including IT & telecommunication and automotive. During 2014–2019, the BFSI sector created the largest demand for blockchain devices and the situation is projected to remain the same in the coming years as well. This is because, the blockchain technology is being utilized in the BFSI sector for different applications such as fundraising, loans and credits, payments, trade finance, and clearance and settlement systems. The fastest growth in demand for blockchain devices is predicted to be created by the retail sector during the forecast period.
The demand for blockchain solutions is increasing due to the rising adoption of the blockchain technology by companies for strengthening their day-to-day operations and increasing security.
This is contributing significantly to the growth of the blockchain devices market. These devices provide the highest safety and security when it comes to exchanging money, data, and information. The BFSI sector is prone to frauds and errors related to money management systems, which is why the sector is increasingly making use of blockchain devices.