Fortune Business Insights: Blockchain-as-a-Service Market to Skyrocket to $24 Billion by 2027
Fortune Business Insights has revealed that the blockchain-as-a-service (BaaS) sector will escalate to $24.94 billion by 2027 from $1.9 billion recorded in 2019, representing a compound annual growth rate (CAGR) of 39.5%. According to the press release shared with Blockchain.News, this uptrend will be fueled by small and medium enterprises (SMEs) as they are viewing blockchain technology as an optimal solution for the numerous challenges they face, like access to bank loans, trade financing, and cash flow difficulties.
BaaS cuts out middlemen
SMEs are continuously looking forward to stamping their authority across the globe, but this necessitates considerable financial resources. BaaS is playing an instrumental role in simplifying access to different trade financing sources. Additionally, its decentralized nature is eradicating middlemen, making it favored by SMEs.
The World Economic Forum (WEF) believes that blockchain technology can be pivotal in bridging the trade financing gap globally. Recently, the WEF asserted that blockchain should be viewed as the vaccine for future disruptions like the one triggered by the coronavirus pandemic in the seafood industry, hence showing its confidence in this technological innovation.
SMEs are reaping the benefits in BaaS in supply chain processes as transparency, immutability, and traceability become inevitable.
The report also noted that the North American BaaS market stood at $1.01 billion in 2019 based on the significant number of blockchain development projects taking place in the United States. A market rise is expected in this region because BaaS solutions are continuously being integrated with public utilities services.
On the other hand, the BaaS sector in Asia-Pacific will be boosted by incredible blockchain investment by China, Japan, and South Korea governments.
Adoption of BaaS solutions by Huawei and Microsoft
Microsoft and Huawei have been setting the ball rolling in implementing BaaS alternatives. For instance, Huawei executed a blockchain service powered by Linux Foundation’s Hyperledge Fabric 1.0 to assist companies in incorporating smart contracts in supply chains in April 2018.
Conversely, Microsoft’s Azure blockchain service was adopted in May 2019 to assist customers design cloud-based blockchain networks.
BaaS is being viewed as the icing on the cake in many industries across the globe. For instance, leading fast-food chain, KFC recently opted for blockchain-enabled media buying and digital advertisements for its Middle Eastern customers.
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