by Cryptocurrency mining involves verifying cryptocurrency transactions and adding them to the blockchain digital ledger in exchange for a fee paid in cryptocurrency. Miners play a vital role in cryptocurrency as it is the mining function that maintains the integrity of the blockchain and confirms transactions are accurate. Some of the commonly mined cryptocurrencies include Bitcoin, Ethereum, Litecoin, Monero and Zcash. Cryptocurrency mining requires powerful specialized hardware such as graphic processing units (GPUs) and application-specific integrated circuits (ASICs). The global cryptocurrency market has grown exponentially in recent years with increasing adoption by financial institutions, retail investors and payments companies. This rapid growth of cryptocurrency usage and transactions has significantly increased demand for mining of major cryptos like Bitcoin and Ethereum.
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 Dynamics:
One of the major drivers for growth of cryptocurrency mining market is the increasing adoption of cryptocurrency. With growing acceptance of major cryptocurrencies as a means of payment by e-commerce platforms, retailers and other businesses, the total number of daily transactions has increased substantially. This has led to higher computational power requirement for verifying these transactions through mining activity. The growth of cryptocurrency market referred to in the heading is directly driving higher revenues for mining farms and individual miners. Another driver is the development of advanced mining hardware with better performance and efficiency. Key manufacturers are continuously innovating to develop ASICs and GPUs with faster hashing power and lower power consumption. This improves mining profits and attracts more participants to join the mining activity. However, factors such as high hardware costs and regulatory uncertainity around certain cryptocurrencies remain a challenge.
Segment Analysis
The Cryptocurrency Mining Market can be segmented on the basis of mining type into self-mining and cloud mining. Self-mining dominates the market in terms of revenue due to greater control and independence. Self-mining miners directly operate their own equipment and mine cryptocurrencies on their own which ensures higher profits.
PEST Analysis
Political: Various governments across the world have introduced cryptocurrency regulations. Some have legalized cryptocurrency mining while others have banned it. Uncertainty around regulations impacts market growth.
Economic: Cryptocurrency prices impact revenues and profits of miners. High currency prices lead to increased mining activities. The market is sensitive to global economic conditions and currency fluctuations.
Social: Growing interest and investments in cryptocurrencies from individuals and institutions is a key driver. Higher acceptability as a payment mode and store of value boosts adoption. However, security and privacy concerns limit social acceptance to some extent.
Technological: Advancements in mining hardware, energy sources and infrastructure improve operational efficiencies and lower costs. New mining techniques such as cloud mining are gaining traction. Blockchain technology developments expand cryptocurrency use cases.
Key Takeaways
The Global Cryptocurrency Mining Market Size is expected to witness high growth over the forecast period owing to growing institutional investments and currency acceptance. The industry is projected to reach a market size of US$ 4960.06 Bn by 2024.
Regional analysis: North America dominates the market currently due to presence of majority of key players such as CropX Inc., Enablon France SA, Tech Mahindra Limited. Miners are also attracted to regions with lower electricity costs such as China and Iran driving growth in Asia Pacific.
Key players: Key players operating in the Cryptocurrency Mining 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. CropX Inc. is a leading player providing advanced mining solutions and hardware.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
