Cryptocurrency mining involves validating transactions and adding them to the blockchain digital ledger using high-powered computers. The mining process requires specialized hardware like Application-Specific Integrated Circuits (ASICs) and Graphics Processing Units (GPUs) that perform complex cryptographic calculations. ASICs offer powerful and efficient mining compared to CPUs and GPUs making them ideal for high-volume cryptocurrency mining operations. Advancements in ASIC design has significantly increased the overall hash rate and processing power enabling mining of more cryptocurrencies.
The global Cryptocurrency Mining Market is estimated to be valued at US$ 4960.06 Bn in 2024 and is expected to exhibit a CAGR of 12.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The cryptocurrency mining market is witnessing an increasing demand for renewable energy sources like solar power as they provide cost-effective electricity for mining operations. Many large-scale mining farms are setting up shop in regions with abundant renewable energy resources and cheaper power prices. For instance, China’s remote regions offer very low electricity costs, cool climate and hydroelectric power fulfilling the basic requirements for mining. Several companies are also exploring the potential of immersion cooling technology that uses specially engineered coolants instead of fans to dissipate heat from mining machines improving their performance and lifetime.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the cryptocurrency mining market is moderate due to the high capital requirement needed for hardware and electricity.
Bargaining power of buyers: The bargaining power of buyers is low as cryptocurrency mining hardware is highly specialized and there are few major manufacturers.
Bargaining power of suppliers: The bargaining power of suppliers like ASIC chip manufacturers is high due to the specialized nature of chips used for cryptocurrency mining.
Threat of new substitutes: The threat of new substitutes is moderate as blockchain technology is still evolving and new consensus mechanisms may reduce the need for mining.
Competitive rivalry: The competitive rivalry in the market is high due to the rising number of cryptocurrencies and miners competing to validate blocks and earn rewards.
Key Takeaways
The Global Cryptocurrency Mining Market Size is expected to witness high growth over the forecast period. The North America region currently dominates the market due to favorable government regulations and the presence of major mining pool operators and mining hardware manufacturers in the US and Canada.
Regional analysis: North America continues to dominate the global cryptocurrency mining market owing to the presence of major mining pools in the US and Canada. Several states in the US like Texas offer inexpensive electricity which benefits large-scale miners. China and Russia also have a sizeable market share due to low-cost electricity.
Key players: Key players operating in the cryptocurrency mining market are CropX Inc., Enablon France SA, Enviance Inc., General Electric, Hortau Inc., IBM Corporation, LO3 Energy, Inc., Oracle Corporation, Tech Mahindra Limited, and Trace Genomics, Inc. Crypto mining pools operated by these companies have a strong grip on the global hash rate. The market is witnessing increasing consolidation as large operators acquire smaller mining firms.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
