June 25, 2024
Smart Contracts
Ict

Smart Contracts Market Poised to Grow at an Impressive Rate Owing to Growing Demand for Increased Security and Transparency in Business Transactions

Smart contracts are self-executing contracts that allow the performance of credible transactions without third parties. They are distributed ledgers that facilitate, verify, and enforce the negotiation or performance of a contract or an agreement between contracting parties. The growing demand for increased security and transparency in business transactions is driving the smart contracts market. Smart contracts help establish trust and traceability in transactions by eliminating the risks of manipulation. The adoption of smart contracts is also being fueled by the growth of blockchain technology.

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: 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.

Key opportunities: The growing demand for transparency and security in business transactions presents significant growth opportunities for players in the Smart Contracts Market Growth. Additionally, the rising popularity of Distributed Ledger Technologies (DLT) such as blockchain is also fueling opportunities.

Global expansion: Led by growing adoption across several sectors such as financial services, supply chain & logistics and government, major players are actively looking to tap international markets for further expansion of their smart contracts offerings. Increasing global partnership and acquisition deals indicate the focus on globalization.

Market drivers: The key driver for the growth of the smart contracts market is the increasing demand for security and transparency in business transactions. Smart contracts help establish trust and traceability in transactions by eliminating the risks of manipulation. The adoption of smart contracts is also being fueled by the growth of blockchain technology.

PEST Analysis

Political: Smart contracts facilitate frictionless transactions by removing the need for intermediaries. However, some regulatory uncertainties still exist around legal enforcement of smart contracts.

Economic: The growing decentralized finance (DeFi) industry has accelerated the adoption of smart contracts for conducting financial transactions in a transparent manner without centralized authorities.

Social: Younger demographics are more comfortable with digital and contactless transactions. Smart contracts allow for peer-to-peer transfers without physical interaction, aligned with new social preferences amid the ongoing pandemic.

Technological: Continuous innovations are enhancing the capabilities of blockchain networks to power more complex smart contracts across multiple industries like copyright protection, supply chain management and real estate titles. Interoperability between networks remains a challenge.

Geographical concentration

North America accounted for the largest share of the global smart contracts market in terms of value in 2024, driven by high technology adoption and the presence of several blockchain companies in the US. The growing FinTech sector has supported market growth through innovative applications of smart contracts.

Fastest growing region

Asia Pacific is expected to witness the fastest growth over the forecast period. This can be attributed to strong government commitments to blockchain technologies in countries like China, Japan and Korea. Increasing cryptocurrency investments and blockchain projects focused on digital identity also contribute to regional market expansion.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it