Growth in the cryptocurrency market will be realized at a compound annual growth rate (CAGR) of 6.18 percent as it reaches a valuation of $1.40 billion by 2024. A new report by MarketsandMarkets shows that the cryptocurrency market will be driven by stronger distributed ledger technology, which improves the transparency of its systems, along with growing international remittances in the developing world. Uncertain regulatory pressures could keep the growth slower.
Growing Crypto Hardware Market
In its new report titled “Cryptocurrency Market by Offering (Hardware: GPU, FPGA, ASIC, & Wallet, and Software), Process (Mining and Transaction), Type, Application (Trading, Remittance, Payment: Peer-to-Peer Payment, Ecommerce, and Retail), and Geography – Global Forecast to 2024,” MarketsandMarkets suggests that the hardware market for digital currencies will have the largest market till 2024.
As cryptocurrencies start becoming more mainstream, the need to run and validate a larger volume of transactions will push the demand for crypto mining hardware. Mining hardware is now being offered by several mainstream hardware vendors like Intel, AMD, and NVIDIA, which signals growth in the sector. Some mining-specific start-ups like GateHub, Bitfury, and Bitmine are also emerging on the scene.
Apart from hardware, peer-to-peer payments in cryptocurrencies will also grow significantly during the study period. As the value of cryptocurrencies surges over time, peer-to-peer payments will grow at the highest CAGR till 2024, especially when considering payments for smaller contracts, donations, and salaries.
APAC Will Lead the Way for the World
As pointed out in previous MarketsandMarkets reports, the APAC region will be key to the cryptocurrency sector’s growth. It will be holding the largest share of the cryptocurrency market between 2019 and 2024. China’s low electricity costs and Japan’s early adoption boost will help in strengthening the region’s position in the market.
China will be the largest market shareholder among the APAC countries, growing into one of the most significant markets for digital currencies. The presence of the world’s top crypto mining companies like Bitmain, Canaan, and Ebang Communications, apart from low power costs, good weather, and easier availability of venture capital will help it retain its status in the region.
However, APAC will not grow at the highest CAGR during the forecast period. The rest of the world (RoW) will grow at the highest growth rate. RoW will grow at highest CAGR, but it will grow without proper regulations, which means that the government’s actions could take a huge toll on the businesses. The major factors that would restrain the growth of the market are uncertain regulatory status, lack of awareness, and technical understanding regarding cryptocurrency.