PUBLISHER: Roots Analysis | PRODUCT CODE: 1803896
PUBLISHER: Roots Analysis | PRODUCT CODE: 1803896
As per Roots Analysis, the global cryptocurrency mining market size is estimated to grow from USD 4.66 billion in the current year to USD 14.09 billion by 2035, at a CAGR of 10.57% during the forecast period, till 2035.
The opportunity for cryptocurrency mining market has been distributed across the following segments:
Type of Revenue Source
Type of Mining
Type of Component
Type of Cryptocurrency
Type of End-Users
Company Size
Geographical Regions
Cryptocurrency Mining Market: Growth and Trends
Cryptocurrency mining is an essential operation for producing new coins and authenticating transactions for bitcoin and other cryptocurrencies. This process depends on vast, decentralized networks of computers located around the globe, which collaborate to validate and safeguard blockchains, digital records that track cryptocurrency transactions. Miners provide their computational resources to this network and are rewarded with newly generated coins, establishing a self-reinforcing loop: miners secure the blockchain, receive coins in return, and are motivated to keep supporting the network.
The expansion of the market is mainly driven by progress in distributed ledger technology and a rise in digital investments from venture capital. In numerous developing countries, digital currencies are becoming practical options for financial transactions. The increasing popularity of digital assets like bitcoin and litecoin is anticipated to further stimulate market growth in the upcoming years.
Moreover, digital currencies frequently work with blockchain technology to enable decentralized and efficient transactions. The advantages of blockchain, such as its decentralized structure, speed, transparency, security, and dependability, are encouraging businesses to invest in cryptocurrencies and work together to improve service quality for users. Considering the growing interest from various stakeholders and adoption patterns among diverse end users, the global cryptocurrency mining market is expected to experience significant growth during this forecast period.
Cryptocurrency Mining Market: Key Segments
Based on type of revenue source, the global cryptocurrency mining market is segmented into block rewards and transaction fees. According to our estimates, currently, the block rewards segment captures the majority share of the market. This can be attributed to their essential role in incentivizing the mining process within blockchain networks.
As cryptocurrency mining increasingly aligns with decentralized energy management systems, it benefits from the core blockchain technology that underpins these applications. Conversely, the transaction fees segment is projected to grow at a higher CAGR during the forecast period, due to the rising adoption of blockchain technology and mining, as well as developments in decentralized finance (DeFi) applications.
Based on type of mining, the cryptocurrency mining market is segmented into cloud mining services, remote hosting services and self-mining. According to our estimates, currently, the cloud mining segment captures the majority of the market. This can be attributed to the convenience and effectiveness of these services. Cloud mining enables users to engage in cryptocurrency mining without requiring significant hardware investments or extensive technical skills.
This model is particularly appealing to those who seek a straightforward mining experience, as it removes the challenges associated with handling physical mining equipment. On the other hand, remote hosting services sector is expected to grow at a relatively higher CAGR during the forecast period, owing to a rising demand for managed services that offer users exclusive resources for mining without the necessity of personal infrastructure.
Based on type of component, the cryptocurrency mining market is segmented into hardware and software. According to our estimates, currently, the hardware segment captures the majority share of the market. This can be attributed to the critical role of physical components, including ASIC, GPU, sensors, displays, and connectivity modules, play in facilitating cryptocurrency mining operations.
On the other hand, the software segment is expected to grow at a relatively higher CAGR during the forecast period, owing to the rising significance of software applications that allow users to control their heating and cooling systems remotely via smartphones and other devices.
Based on type of cryptocurrency, the cryptocurrency mining market is segmented into bitcoin, ether, ether classic, litecoin, ripple, and others. According to our estimates, currently, the bitcoin segment captures the majority share of the market, owing to widespread adoption of bitcoin, its significant market capitalization, and its recognition as a reliable store of value.
On the other hand, the ether segment is expected to grow at a relatively higher CAGR during the forecast period. This growth can be linked to ether's distinctive features, such as its ability to support smart contracts and decentralized applications, which have sparked heightened interest from both developers and businesses.
Based on type of end-users, the cryptocurrency mining market is segmented into e-commerce and retail, peer-to-peer payment, remittance and trading. According to our estimates, currently, the e-commerce and retail segment captures the majority share of the market. This can be attributed to the growing recognition of cryptocurrencies as a valid payment option among both online retailers and consumers.
E-commerce platforms are increasingly incorporating cryptocurrency payment methods to attract tech-savvy customers and improve transaction efficiency, contributing to substantial growth in this area. On the other hand, the peer-to-peer payment segment is expected to grow at a relatively higher CAGR during the forecast period, owing to the surging popularity of decentralized finance platforms that enable direct transactions between users without the need for intermediaries.
Based on company size, the cryptocurrency mining market is segmented into large and small and medium enterprise. According to our estimates, currently, large enterprise segment captures the majority of the market. On the other hand, the small and medium enterprise segments is expected to grow at a relatively higher CAGR during the forecast period. This can be attributed to their innovative approaches, emphasis on specialized markets, and capacity to adjust to evolving customer preferences and market dynamics.
Based on geographical regions, the cryptocurrency mining 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. This can be attributed to the fact that this region treats bitcoin as a medium of exchange for taxation rather than as a form of currency.
Although there is no formal regulation by the government regarding this classification, many developed nations continue to highlight the importance of digital currencies. The influence of regulations on cryptocurrency mining and the increasing acceptance of digital money by both consumers and retail establishments play a significant role in market growth.
Cryptocurrency mining Market: Research Coverage
The report on the cryptocurrency mining market features insights on various sections, including:
Key Questions Answered in this Report
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