Forecasting a $3.7B market for Bitcoin transactions worldwide by 2031: Research
October 25, 2022 3:51 AM
As demand from financial institutions and developing countries grows, the private key and hardware industries will lead the way in the expansion of Bitcoin payments.
In a report released on October 24, Allied Market Research predicted that the global Bitcoin (BTC) payments market would reach $3.7 billion by 2031, with a compound annual growth rate (CAGR) of 16.3 percent from 2022 to 2031. This growth would be driven by private keys and hardware.
Among the major factors supporting growth in the sector in the coming years is the operational demand for efficiency and transparency in payments systems, the growth of data security services, and the increase in demand for remittances in emerging economies. According to the report:
"Additionally, during the forecast period, lucrative opportunities for the expansion of the bitcoin payments market are anticipated, owing to the rise in demand for bitcoin among banks and financial institutions and the untapped potential in emerging economies."
The private keys segment accounted for 74% of the Bitcoin payments market in 2021, and the report predicts that this percentage will remain stable throughout the forecast period, growing at a CAGR of nearly 20.3% until 2031. The hardware sector is expected to grow at a CAGR of 19.8% during the same time period.
The report predicts that by 2031, online retail will have grown by nearly 20.2%, ensuring the sector's continued interest in e-commerce. By 2031, analysts anticipate that Asia-Pacific will still hold a sizable share of the market. However, growth forecasts indicate that the North American region will experience the highest rate of expansion, at 18.6% CAGR.
The report recognizes that the sector's progress can be hampered by high deployment costs and low global awareness of the use of Bitcoin, both of which are referred to in the report. A few things were mentioned:
"The use of distributed ledger technology (DLT) has expanded far beyond the realm of cryptocurrencies and into the realms of finance and government. But many people and financial and government sectors in developing nations like India, Africa, and Australia know less about transactions made using bitcoin payment, which slows the growth of the bitcoin payment market worldwide."
It has been reported that the cryptocurrency bear market has affected the way people pay with cryptocurrency, but despite this, Bitcoin is still a major payment tool, accounting for more than 50% of all sales on the platform of payment service provider BitPay. According to the numbers, BitPay's BTC sales volume peaked at 87% in 2021, before dropping during the bear market of 2022.