Cryptocurrency Market size is set to surpass USD 1.8 billion by 2027.

The cryptocurrency industry is expected to grow significantly over the forecast period due to growing investments across enterprises operating in blockchain and cryptocurrency. Government authorities across the globe are establishing a favorable regulatory framework including anti-money laundering, further boosting industry growth. The companies are considering cryptocurrencies and other similar digital assets as investments. The lowered processing fees and performance capabilities of cryptocurrencies enable market growth.

Cryptocurrency Market size crossed USD 900 million in 2020 and is projected to register gains at over 10% CAGR from 2021 to 2027. The cryptocurrency industry is witnessing substantial growth with increasing volumes of cryptocurrency transactions and their market capitalizations. For instance, the market cap for bitcoin was more than 609 billion in January 2021 as compared to 134 billion in January 2020. Advanced capabilities including reduced costs associated with the transactions along with peer-to-peer connection are contributing to the adoption of cryptocurrency. Several enterprises are adopting virtual currencies to limit the impact of currency fluctuations, enabling the market growth.

Amid the COVID-19 pandemic, the market observed significant growth across multiple geographies. The exchange platform witnessed a sharp increase in trading transactions and the market caps of these currencies also flourished. In response, companies operating in the market also predicted a rise in demand for mining hardware components.

The cryptocurrency industry growth is attributed to rising investments and development in financial technologies. The companies across geographies prefer advanced technological infrastructures for financial applications. In response, the investments for the development of digital financial infrastructure have also increased. According to a study by KPMG, in 2019, the total investments in financial technology across Asia Pacific reached USD 12.9 billion by the fourth quarter of 2019. These investments followed by favorable government initiatives are expected to support cryptocurrency developments, further fueling the market growth.

In the UK, the cryptocurrency market from trading software reported revenues of USD 6.66 million in 2020. The need for enhanced security and flexibility in cryptocurrency transactions is boosting the demand for trading software. The software platform features robust encryption measures and integration of advanced computing technologies such as AI. This further enables enterprises or individuals to automate the buying and selling process with respect to a particular cryptocurrency. Advanced algorithms and mathematical codes incorporated within this platform make it a lucrative option for enterprises.

In Canada, bitcoin held 30.4% of the cryptocurrency market share in 2020 and is estimated to grow exponentially through 2027. Bitcoin cryptocurrency leverages peer-to-peer technology to manage issuance and transactions. Major factors including rapid P2P transactions, global payment ecosystem, and low processing costs have contributed to the expansive adoption of bitcoins. Transactions performed using this cryptocurrency are secured through cryptographic signatures and PoW energy. The majority of the consumers and several enterprises in the market are investing in bitcoins, further enabling market revenue.

In Japan, the trading end-use segment is forecast to witness gains at more than 13% CAGR till 2027. The widespread adoption of cryptocurrency and favorable government framework along with trading software providers are contributing to the market value. According to the statistics from skalex GmbH, as of 2019, approximately 3.5 million of the population across the country was engaged in cryptocurrency trading. Considering these figures, the demand for crypto software and hardware components to support trading operations across the industry is anticipated to grow substantially.

Asia Pacific held around 20% of the global cryptocurrency market share in 2020 and is likely to observe exponential growth from 2021 to 2027. The expansive volumes of cryptocurrency transactions and acceptance as a payment option are contributing to the market demand. For instance, in February 2021, Rakuten Payment Inc., a Rakuten Group of companies, enabled support to crypto assets, such as Bitcoin, for recharging cash balance. This allowed the company's customers to use their crypto assets for payment-related transactions in the industry. Additionally, a favorable digital infrastructure across the region is poised to propel market growth.

The Application-Specific Integrated Circuit (ASIC) market is projected to hold above 20% share by 2027. The high transaction processing performance of ASICs compared to GPUs, CPUs, etc., has contributed to the segmental growth. ASIC hardware components specifically mining machines enable companies to mine specific cryptocurrencies at a high hash rate. Several companies operating in the market including Bitmain Technologies Ltd. offer a comprehensive suite of ASIC cryptocurrency mining equipment.

The XRP segment is projected to witness exponential growth over the forecast timeline. XRP is a cryptocurrency specifically developed as a payment application and is powered by XRP ledger, a decentralized blockchain technology. The lowered transaction settlement time compared to other cryptocurrencies is one of the major factors contributing to the adoption across the industry. The consistent governance and platform technology upgrades have fueled its adoption across institutions and enterprises, supporting market growth.

In the end-use segment, peer-to-peer payment is anticipated to grow significantly from 2021 to 2027. Peer-to-peer transactions are performed between individuals through an intermediary. The need for additional performance and scalability across users is driving enterprises to launch P2P trading & payment platforms that support cryptocurrencies. For instance, in August 2020, OKEx.com unveiled its peer-to-peer platform in India with the capability to transact approximately 15 cryptocurrencies with zero-service costs. This helped the company to enhance its market position and cater to a large-scale population.

Europe is expected to account for above USD 500 million in the global value market due to the extensive ownership of cryptocurrency and enhanced regulatory framework. With the rising demand for high-performance transactions, several companies across the region are strengthening their operations. For instance, in February 2021, Argo Blockchain PLC deployed approximately 4,500 mining machines including Bitmain Antminer S19 and S19 pro from Celsius Network. This deployment enabled the company to gain approximately 430 petahash of computing power. This further helped the company to improve its mining operations and address demand in the market.

Companies operating in the cryptocurrency market are focusing on collaborative initiatives for the development of advanced mining solutions. For instance, in March 2021, DMG Blockchain Solutions Inc. collaborated with Argo Blockchain Plc and unveiled Terra Pool, an integrated bitcoin mining pool powered by sustainable energy. The companies emphasized on reducing the impact of cryptocurrency mining on natural resources and developed a robust mining pool. This launch helped DMG to shift customer interest toward sustainable technology solutions and differentiate its offering in the market.

Some of the key players operating in the cryptocurrency market are Advanced Micro Devices Inc., Binance, com., Bitfury Group Limited, BitGo Inc., BitMain Technologies Ltd., Canaan Inc., Coinbase (CB Payments Ltd.), CudoMiner (Cudo Ventures Ltd.), EasyMiner, Ethereum Foundation, Intel Corporation, IntelliBreeze Software AB (Awesome Miner), Ledger SAS, NICEHASH Ltd., Nvidia Corporation, Ripple Labs Inc., Robinhood Financial LLC, SatoshiLabs s.r.o. (Trezor), and Squirrels Research Labs Inc.

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