Europe Blockchain in BFSI Market Outlook to 2028

Market Overview:

A decentralized, distributed digital ledger called blockchain is used in the banking, financial services, and insurance industries (BFSI) to record transactions among a network of computers. It aids in boosting productivity, cutting expenses, enhancing security, and raising transparency. The Europe Blockchain market in BFSI is anticipated to grow at a CAGR of 65% owing to different factors. Some of the growth drivers of European blockchain in the BFSI market are the growing demand for comprehensive security procedures, higher compatibility with the financial services sector ecosystem, and faster and less expensive cross-border payment systems.

Countries like the United Kingdom, Germany, and Italy are dominating the European blockchain BFSI market. The market is projected to witness significant growth in terms of revenue as well as expansion. However, there are a few obstacles that are restraining the market such as Regulatory uncertainty, Data privacy and GDPR, Interoperability and standards, Scalability and performance, and Energy consumption. Despite these challenges, one of the key reasons boosting market expansion is the BFSI sector's rapid digitization and rising automation all over Europe.

The European blockchain in the BFSI market has a wide spectrum of competitors and is quite competitive. In the European Blockchain in the BFSI market, both domestic and foreign players are active. Various players are actively present in this particular some of them are Accenture, Amazon Web Services, Group Limited, Hewlett Packard Enterprise Development (HPE), IBM Corporation, Intel Corporation, Microsoft Corporation, Oracle Corporation, Ripple Labs Inc., SAP SE, Accubits technologies, Clearmatics, Fujitsu, JP Morgan, and Microsoft Corporation.

In order to keep their positions in the industry, all of these market participants are implementing a variety of strategic activities. A few notable market developments include product launches, major alliances, capacity expansion for production, and mergers and acquisitions. To have an advantage over rivals, every significant company in the market is making significant investments in technology development and innovation. Additionally, as the market expands in the future, many new competitors are anticipated.

Market Analysis:

European blockchain in the BFSI market is developing remarkably and it holds a major share of the global blockchain in the BFSI market. It is one of the biggest markets for blockchain in the BFSI due to its area size. European blockchain in the BFSI consists of a total of 50 countries but the market is dominated by a few countries like the United Kingdom, Germany, Italy, and Switzerland.

Accenture, Amazon Web Services, and Group Limited are the three leading market players in Europe blockchain in the BFSI market. These companies are ruling the region due to their huge customer base and resources available to expand businesses in Europe blockchain in the BFSI market. These players have a strong presence outside of Europe as well.

The market is impacted by different factors affecting the market. The primary growth drives of the market are the growing demand for comprehensive security procedures, higher compatibility with the financial services sector ecosystem, faster and less expensive cross-border payment systems, rapid digitalization and increasing automation, and, rising utilization of online banking services.

The digital currency segment of Europe blockchain in BFSI is dominating the market. The demand for this particular segment is consistently increasing in the industry due to the development and excessive utilization of digital currency in the market. One of the biggest advantages of Cryptocurrencies is that they allow customers to make payments directly to each other through an online platform without the involvement of any physical contact.

Key Trends by Market Segment:

By Type: The market is classified into four main categories based on the type that are Private, Public, Consortium, and Hybrid. The private type is leading the market by capturing a huge share of the market followed by Private, Public, Consortium, and Hybrid. The private type is leading the market because private blockchains are permissioned systems where access and interest are controlled by a single organization or a bunch of organizations. Only approved members are permitted to connect to the network and contribute to the consensus process. Private blockchains are commonly utilized by monetary institutions for internal purposes, such as upgrading the productivity of back-office operations, progressing supply chain management, and guaranteeing secure information sharing between branches or divisions. They can moreover encourage regulatory compliance and decrease the risk of unauthorized access.

By Type of Application: European blockchain in the BFSI market is divided into three types based on the type of application that are Digital Currency, Record Keeping, and Payments & Settlement. Among all the application types digital currency type is dominating the market. The reason behind its domination in the market is that Digital currencies regularly referred to as cryptocurrencies, are decentralized digital resources that utilize cryptography for secure exchanges and control of modern units. These monetary forms work on blockchain technology and can be utilized for different financial transactions and ventures. Cryptocurrencies like Bitcoin and Ethereum are commonly utilized for investment and speculation, cross-border settlements, and as a store of esteem. They give an alternative to traditional fiat currencies and can enable monetary exchanges without the required for mediators.

By type of Geography: European blockchain in the BFSI market consists total of 40 countries. However, the market is ruled by a few countries that are dominating the blockchain in the BFSI industry. Countries United Kingdom, Germany, France, Italy, and Switzerland are some of the biggest players with huge markets of blockchain in the BFSI market. Both the United Kingdom and Germany have well-established and globally recognized monetary sectors. London is a major financial hub, home to various financial institutions, investment firms, and fintech companies. Additionally, Germany contains a solid financial centre in Frankfurt, which has the European Central Bank and other major banks. Both nations have grasped development and innovation adoption. They are home to dynamic fintech ecosystems, including new companies, accelerators, and advancement labs.

Competitive Landscape:

Various domestic and international players are active in European blockchain in the BFSI market. The market is highly competitive and dynamic due to its huge size and variety of services. The heavy utilization of the digitalization process and cryptocurrencies are changing the dynamics of the market. Established banks and financial institutions all over Europe are exploring blockchain innovation to progress operational effectiveness, decrease costs, upgrade security, and offer inventive financial products.

Accenture, Amazon Web Services, Group Limited, Hewlett Packard Enterprise Development LP (HPE), IBM Corporation, Intel Corporation, Microsoft Corporation, Oracle Corporation, Ripple Labs Inc., SAP SE, Accubits technologies, Clearmatics, Fujitsu, JP Morgan, and Microsoft Corporation are some of the market leaders. Additionally, Fintech startups are driving advancement within the BFSI division by creating blockchain-based arrangements for payments, settlements, loaning, exchange funds, resource tokenization, and more.

Recent Developments:

The market is now being positively affected by the expanding use of online banking services due to a significant reliance on smartphones and the growing adoption of high-speed internet connectivity. Additionally, the rise in online financial crime, money laundering, and other cyberattacks is helping the market expand. In addition to this, government bodies from several nations across Europe are taking steps to support the security and privacy of user data.

Additionally, there is an increase in the use of blockchain and cryptocurrencies in BFSI to provide transactional security and smart contract capabilities. This is driving the market's expansion, together with the rise in the number of websites offering banking and trading services like cryptocurrency trading and individuals' rising income levels.

In July 2018, one of the market leaders in European blockchain in the BFSI market IBM announced its partnership with CLS a blockchain platform. Apart from IBM nine other budgetary administration businesses that incorporate banks Barclays and Citi have become a part of this platform.

In May 2019, Deloitte another major player in the market tested data management on the Ethereum blockchain with three banks (Institution of Banking, Bank of Ireland, AIB and Ulster Bank) based in Ireland for staff credential verification.

Future Outlook:

The European blockchain in the BFSI market is estimated to grow at a CAGR of 65% in the forecasted period of 2022-2028. The primary growth drivers of the market are the growing demand for comprehensive security procedures, higher compatibility with the financial services sector ecosystem, and faster and less expensive cross-border payment systems.

European nations will continue refining their regulatory systems for blockchain and cryptocurrencies within the BFSI segment. Clarity and steadiness in controls can empower more financial institutions to explore blockchain-based solutions.

As blockchain adoption grows, there might be an expanded emphasis on creating benchmarks and interoperability protocols to enable consistent communication and information trade between diverse blockchain systems and financial institutions.

Blockchain-based identity arrangements will become more predominant, permitting people to have control over their individual information and streamline the KYC process over different financial administrations.

DeFi (Decentralization Finance) stages and applications, which offer financial services without mediators, seem to continue to grow. Conventional financial institutions might collaborate with or join DeFi components into their offerings.