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The global blockchain technology market in the banking, financial services and insurance (BFSI) sector will grow by approximately 63% by 2022, according to Technavio.

The market research firm notes that increasing government investments in blockchain technologies will be the main driver of the market.

Governments explore blockchain

Governments including the UK, Canada, Russia and China are examples of government trialling placing of national currencies on blockchain technologies.

Governments in Africa are expected to follow suite with Tunisia already replacing its eDinar digital currency with a blockchain-based version.

The replacement of national currencies with blockchain will increase the penetration of the technology in all sectors including energy, water, mining and agriculture.

Technavio forecasts an increase in use of integrated IoT and blockchain technologies. Integration will help improve blockchain management systems including transactional processes and tracking of real-time assets.

A popular choice

The research company divides the market into three segments namely public, consortium and private blockchain.

The growing popularity of cryptocurrency/bitcoin is expected to drive an increase in use of blockchain technology in the public blockchain segment, which dominated the market in 2017.

At regional level, the EMEA is expected to be the major contributor to the blockchain market by 2022.