The Smart Contracts Market, which facilitate the exchange of digital assets and allow decentralized transactions on blockchain networks, is poised to witness significant growth driven by increasing adoption of blockchain technology across various industries.
Smart contracts enable self-executing deals or agreements to be codified, verified and enforced automatically without third-party intervention. They find applications in financial services, insurance, supply chain & logistics and retail industries owing to advantages like transaction transparency, enhanced security and removal of intermediaries. Considerable investments by key players are also fueling the development of innovative blockchain solutions and decentralized applications based on smart contracts.
The Global Smart Contracts Market is estimated to be valued at US$ 287.71 Bn in 2024 and is expected to exhibit a CAGR of 16% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the Smart Contracts market are DeviantArt, Nifty Gateway, SuperRare, Foundation, MakersPlace, KnownOrigin, Async Art, ArtBlocks, OpenSea, Rarible, NTWRK, ArtStation, Artsy, Saatchi Art, Singulart, DigitalArt4Climate, Hic et Nunc, Showtime, Verisart, Artmajeur.
Growing demand from major industries: Rapid adoption of blockchain technology across industries like financial services, healthcare, supply chain etc. to improve operational efficiency using decentralized applications is driving the demand for Smart Contracts Market Demand.
Global expansion: Leading players are expanding to other geographies and focusing on partnerships to tap newer markets for smart contracts. Initiatives to develop standards and common framework for smart legal contracts will further accelerate globalization.
Market key trends
Integration of IoT and AI: Smart contracts are increasingly being used with IoT devices and AI/ML algorithms to enable autonomous transactions based on real-time data and events. This is opening up avenues for innovative applications in sectors like automotive, industrial manufacturing etc. The combination with emerging technologies will be a major trend, furthering the growth of smart contracts market over the coming years.
Porter’s Analysis
Threat of new entrants: The smart contracts market is expected to grow at a rapid pace in future attracting many new entrants. However, the market already has some strong established players making entry difficult.
Bargaining power of buyers: Buyers have moderate bargaining power in the smart contracts market due to availability of substitute products. However, buyers still prefer popular brands and products lowering their power.
Bargaining power of suppliers: A few large suppliers exist in the smart contracts platform development space giving them some bargaining power against buyers. However, presence of many smaller suppliers balances out this power.
Threat of new substitutes: New blockchain-based products and agreement technologies can replace smart contracts. Startups are actively developing such alternatives posing threat of substitution.
Competitive rivalry: The smart contracts market sees intense competition amongst major players to gain market share and deploy innovative solutions.
Geographical regions
North America dominates the smart contracts market currently accounting for over 35% share in 2024. This is attributed to strong technological adoption, presence of major players and developers in the US and Canada driving regional market growth.
The Asia Pacific region is expected to grow the fastest in the smart contracts market during the forecast period. This is due to rapid digitization efforts across industries, growing blockchain technologies acceptance and strong focus of governments in countries like China, India to support such innovations. Increased foreign investments in blockchain startups will further aid regional market expansion.