PUBLISHER: Roots Analysis | PRODUCT CODE: 1787840
PUBLISHER: Roots Analysis | PRODUCT CODE: 1787840
As per Roots Analysis, the global decentralized finance market size is estimated to grow from USD 23.92 million in the current year to USD 960 million by 2035, at a CAGR of 39.88% during the forecast period, till 2035.
The opportunity for decentralized finance market has been distributed across the following segments:
Type of Component
Type of Application
Type of Industry Served
Type of Enterprise
Geographical Regions
At present, approximately 1.7 billion individuals around the globe lack access to financial services, with 1.1 billion of these individuals having mobile phone access. This highlights the transformative combination of finance and blockchain technology. It's important to note that decentralized finance is set to revolutionize the financial sector by enhancing accessibility. Some key benefits of decentralized finance include reduced transaction costs by removing intermediaries, giving users complete control over their assets, and providing 24/7 access to financial services. Moreover, decentralized finance has improved operations by offering deeper insights and more effective solutions to critical challenges in various sectors such as investment banking, insurance, real estate, and supply chain management.
The decentralized finance market is becoming an essential element in the global movement toward innovation and digital transformation aimed at democratizing access to financial services. Natural language processing and blockchain technology are crucial in realizing the full potential of decentralized finance. DeFi facilitates peer-to-peer payments within its systems, enabling users to lend, borrow, trade, and earn interest without relying on conventional financial entities like banks. Furthermore, innovations such as decentralized autonomous organizations (DAOs) are transforming governance models within various DeFi platforms, encouraging decisions driven by the community. As a result, with ongoing technological progress and an increase in investors, the decentralized finance market is expected to experience significant growth during the forecast period.
Based on type of component, the global decentralized finance market is segmented into blockchain technology, decentralized applications and smart contracts in decentralized finance. According to our estimates, currently, the decentralized applications segment captures the majority share of the market.
Additionally, this segment is anticipated to grow at a comparatively higher CAGR during the forecast period. Key factors contributing to this leading position include their practical applications and user engagement across different sectors, especially in finance, gaming, and social media.
Based on type of application, the decentralized finance market is segmented into asset management, compliance and identity, data analytics, gaming and payments. According to our estimates, currently, the gaming segment captures the majority of the market. Additionally, this segment is anticipated to grow at a comparatively higher CAGR during the forecast period.
This can be attributed to various factors including the emergence of play-to-earn models, which enable players to generate real-world value through in-game activities and assets like NFTs.
Based on type of industry served, the decentralized finance market is segmented into BFSI, automotive, media & entertainment, retail & E-commerce and others. According to our estimates, currently, BFSI market segment captures the majority share of the market. Additionally, this segment is anticipated to grow at a comparatively higher CAGR during the forecast period.
This can be attributed to the essential demand for transparency, efficiency, and accessibility within the sector. DeFi technologies remove intermediaries, which greatly lowers transaction costs and processing times, making it particularly attractive in financial services.
Based on type of enterprise, the decentralized finance market is segmented into large and small and medium enterprise. According to our estimates, currently, large enterprise segment captures the majority share of the market. Additionally, this segment is anticipated to grow at a comparatively higher CAGR during the forecast period.
This growth can be attributed to their ability to invest in cutting-edge decentralized finance technologies, leverage considerable resources, enhance economies of scale, and stimulate business expansion.
Based on geographical regions, the decentralized finance market is segmented into North America, Europe, Asia, Latin America, Middle East and North Africa, and the rest of the world. According to our estimates, currently, North America captures the majority share of the market. However, the market in Asia is expected to grow at a higher CAGR during the forecast period.
This growth can be linked to swift technological developments, governmental initiatives aimed at enhancing financial inclusion, and a significant unbanked population in search of accessible financial services. Moreover, countries such as Singapore, Japan, and South Korea are emerging as prominent centers for blockchain innovation, creating a favorable environment for the adoption of cryptocurrencies in the DeFi space.
The report on the decentralized finance market features insights on various sections, including: