Cryptocurrency Market Share, Size, Trends, Industry Analysis Report, By Component (Hardware and Software); By Type; By End-Use; By Region; Segment Forecast, 2023 - 2032
- Published Date:May-2023
- Pages: 117
- Format: PDF
- Report ID: PM2234
- Base Year: 2022
- Historical Data: 2019-2021
Report Summary
The global cryptocurrency market was valued at USD 2,191.25 million in 2022 and is expected to grow at a CAGR of 11.6% during the forecast period. Cryptocurrency is a type of digital asset that uses blockchain or distributed ledger technology to enable a secure transaction. There are various cryptocurrencies exist, each with its own set of rules. Cryptocurrencies are decentralized as they are not controlled by any government or financial institution. They are used for buying, selling, swapping, and storing cryptos. The prices of cryptocurrencies can fluctuate significantly due to the factors, such as economic conditions, government regulations, media coverage, and more.
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According to Congressional Research Service estimates, there were more than 5,100 different cryptocurrencies worth about $231 billion in March 2020. Cryptocurrencies have attracted the attention of policymakers and the general public because of their rapid growth and volatility.
Technological innovations play important role in the success of cryptocurrency. It improves the efficiency of the financial system or strengthens competition. Recent innovations in Artificial Intelligence (AI) are expected to have a huge impact on the market. For instance, an artificial intelligence program was developed by Los Alamos National Laboratory researchers in August 2021 to identify illegal cryptocurrency miners who use research computers for cryptocurrency mining.
The COVID-19 pandemic has badly impacted global economies, leading to increased market instability and economic instability. However, the cryptocurrency market has shown resilience during the pandemic, with increased demand from investors seeking safer and more dependable investments.
Banks have also started investing in cryptocurrency platforms and launching their own blockchain-based systems. The implementation of expansionary monetary policies by major countries to combat the economic effects of the pandemic has contributed to the rise in Bitcoin prices. Bitcoin, Litecoin, Ethereum, Cardano, Ripple, and Stellar have emerged as major players in the market during and after the pandemic, with their performance influenced by various driving factors.
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Industry Dynamics
Growth Drivers
The demand for cryptocurrency exchange platforms is expected to increase in the coming years as digital assets like cryptocurrencies and NFTs continue to gain popularity. Cryptocurrencies offer adaptability and ease of use in transactions, making them an attractive option for people in industrialized nations like the U.S. and Canada. The growing use of mobile-based trading systems is also expected to drive the growth of the cryptocurrency industry
Blockchain technology is a key component of cryptocurrencies, enabling efficient and decentralized transactions. The rise in popularity of NFTs, which are connected to the Ethereum network, has contributed to the significant increase in the price of ether this year. As a result, many major players in the industry are introducing cutting-edge products such as Exchange Traded Funds (ETFs) and NFTs, which are anticipated to boost industry growth.
KuCoin, is a global cryptocurrency exchange with over 20 million members, in August 2022 launched an NFT ETF trading area. The product aims to boost the liquidity of NFT assets and lower the investment threshold for blue-chip NFTs. The growing use of cryptocurrencies as a means of value storage and medium of exchange in countries like Iran, Venezuela, and El Salvador is also contributing to the growth of the cryptocurrency market.
Report Segmentation
The market is primarily segmented based on component, type, end-use, and region.
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By Component |
By Type |
By End-Use |
By Region |
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Hardware segment accounted for the highest market share in 2022
The hardware segment accounted highest market share in 2022 and is likely to retain its position over the anticipated period. As for the number of companies that provide hardware for cryptocurrency mining, there are several. Some of the most well-known companies include Bitmain, Canaan Creative, Ebang, and MicroBT, which are all Chinese-based companies that manufacture ASICs for Bitcoin mining. These companies are responsible for a significant portion of the world's Bitcoin mining power. Other companies that provide mining hardware include NVIDIA and AMD, which manufacture GPUs that can be used for mining cryptocurrencies.
Ethereum segment is projected to grow at the fastest rate during the forecast period
The Ethereum segment is projected to grow at the fastest rate. Ethereum is a decentralized blockchain platform that allows for the creation of decentralized applications (dApps) and smart contracts. It was launched and has since become one of the most popular blockchain platforms. Ethereum uses a programmable blockchain, meaning that developers can use its programming language, Solidity, to write smart contracts.
In 2022, Ethereum has undergone a major upgrade called Ethereum 2.0, which aims to improve scalability, security, and energy efficiency. This upgrade involves a shift from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) mechanism. The upgrade will reduce the amount of energy needed to validate transactions on the network and improve the speed of transactions.
Trading segment accounted for the highest market share in 2022
Trading segment accounted for the highest market share in 2022. Cryptocurrency trading is known as taking a financial position on the price direction of individual cryptocurrencies against the dollar (in crypto/dollar pairs) or against another cryptocurrency (through crypto-to-crypto pairs). Cryptocurrency trading enables users to speculate on cryptocurrency price movements without taking ownership of the underlying coins.
The cryptocurrency trading process involves buyers and sellers agreeing on a price and executing trades on exchanges, which determine the market valuation. Web browsers are partnering with blockchain technology firms to enable easy cryptocurrency trading. CFDs are a popular way to trade cryptocurrencies for their flexibility. Risk management is important, including setting limits on potential losses. Trading strategies vary based on personal preferences, trading capital, risk tolerance, and other factors.
North America dominated the global market in 2022
North America dominated the global industry in 2022 and is likely to maintain its dominance over the anticipated period. The regional market is growing due to increased usage of cryptocurrencies in NFTs and acceptance of cryptocurrencies as a wealth storage option. Investments are being made in blockchain technology and advanced cryptocurrency mining equipment.
Despite some countries considering cryptocurrencies as taxable assets rather than legal tender, wealthy nations are still prioritizing their use. The North American market is influenced by widespread bitcoin mining and renowned organizations. Intel Corporation announced plans to provide energy-efficient accelerators for blockchain technology, with Argo Blockchain as one of their first clients.
The Asia Pacific cryptocurrency market is driven by the desire for safer transactions and increased acceptance of cryptocurrencies and blockchain in the region. However, regulatory environment is diverse, with varying crypto laws and policies across Asian nations. Some countries have imposed restrictions on cryptocurrency mining and trading due to concerns about energy usage and financial risks.
Singapore and Thailand have relatively more liberal cryptocurrency laws, but there is an increasing crackdown on licensing, AML, and CFT regulations. Cryptocurrencies have emerged as a cost-effective means of remittances in countries like the Philippines. While Asian countries recognize the advantages of cryptocurrencies, they are also concerned about money laundering and terrorist financing, and are calling for more regulations to protect consumers and companies from speculative trading and risky investments.
Competitive Insight
Some of the major players operating in the global cryptocurrency market include BITMAIN Technologies Holding Company, NVIDIA Corporation, Bitfury Group Limited, Kraken, BitGo, BlockFi, Xilinx (AMD), Gemini Trust Company, LLC, Ledger SAS, Intel Corporation, AirSwap, Binance Holdings Ltd., Ripple, and Coinbase Global Inc.
Recent Developments
- In January 2023, BITMAIN Technologies Holding Company has launched its new generation ANTMINER, the S19j Pro+, designed to provide voltage compatibility for data center operations and save additional costs of purchasing different voltages.
- In February 2023, Binance launched Binance Tax tool that enables users to easily access details of the tax associated with their crypto trading activity.
Cryptocurrency Market Report Scope
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Report Attributes |
Details |
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Market size value in 2023 |
USD 2,444.77 million |
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Revenue forecast in 2032 |
USD 6,574.73 million |
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CAGR |
11.6% from 2023 – 2032 |
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Base year |
2022 |
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Historical data |
2019 – 2021 |
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Forecast period |
2023 – 2032 |
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Quantitative units |
Revenue in USD million and CAGR from 2023 to 2032 |
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Segments Covered |
By Component, By Type, By End-Use, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Key Companies |
BITMAIN Technologies Holding Company, NVIDIA Corporation, Bitfury Group Limited, Kraken, BitGo, BlockFi, Xilinx (AMD), Gemini Trust Company, LLC, Ledger SAS, Intel Corporation, AirSwap, Binance Holdings Ltd., Ripple, and Coinbase Global Inc. |
FAQ's
The global cryptocurrency market size is expected to reach USD 6,574.73 million by 2032.
Key players in the cryptocurrency market are BITMAIN Technologies Holding Company, NVIDIA Corporation, Bitfury Group Limited, Kraken, BitGo, BlockFi, Xilinx (AMD), Gemini Trust Company, LLC.
North America contribute notably towards the global cryptocurrency market.
The global cryptocurrency market expected to grow at a CAGR of 11.6% during the forecast period.
The cryptocurrency market report covering key segments are component, type, end-use, and region.
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- Regional analysis
- Segmentation analysis
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