As blockchain technology continues its surge to mainstream acceptance, a new report predicts a market capitalization spike for the Blockchain-as-a-Service market to new highs.
According to the report by Stellar Market Research, the sector is expected to reach a market capitalization of $71.3 billion before the end of 2030. Currently valued at around the $8 billion mark, the report projects a compound annual growth rate of 37% before the end of the decade.
Blockchain-as-a-Service (BaaS) are cloud-based solutions designed to smoothen the curve for enterprises keen on integrating blockchain into their existing operations. These tailor-made services allow users to manage and monitor blockchain applications without the downside of steep infrastructure costs and complex technical requirements.
The ambitious projections for the sector are driven by a slew of factors, with the supply chain industry predicted to drive up numbers. Swathes of supply chain service providers are turning to blockchain in droves, driven by the need to achieve operational efficiency and transparency for participants.
Outside of supply chain firms, e-commerce players are poised to trigger a spike in market capitalization for BaaS through tokenization use cases, although small and medium-scale enterprises (SMEs) are also expected to contribute their fair share to the growth of BaaS.
The report identifies the healthcare, logistics, energy, and finance sectors as potential needle movers for BaaS in the coming years.
A community reading of the five-year projection reveals the rise of several trends in the sector. For starters, integrating blockchain with artificial intelligence (AI) and the Internet of Things (IoT) technology is expected to dominate the BaaS narrative for years.
On the government side, automation and smart contracts will be central to BaaS, with the report predicting use cases on digital identity platforms.
While North America and Europe have dominated BaaS adoption metrics since 2020, the report projects that Southeast Asia will take the lead in the coming years. Already, the region is showing signs of incoming growth, with Vietnam and Thailand’s local ecosystems recording double-digit growth rates.
In the Far East, Japan is charging ahead with a 15% BaaS market expansion buoyed by streaks of innovation by Fujitsu (NASDAQ: FJTSY) and NTT Data (NASDAQ: NTDTY). Singapore and South Korea, keen on not playing catch up, are embracing BaaS, with the U.S. holding onto its 40% market share for the industry.
Vietnam Blockchain Association set to assist Da Nang’s transformation into a global financial hub
In other news, the Vietnam Blockchain Association (VBA) has confirmed the signing of a partnership agreement with Da Nang administrators to transform the coastal city into an international financial center (IFC).
The cooperation agreement seeks to leverage VBA’s expertise with blockchain to improve Da Nang’s Web3 adoption metrics. Representatives from both sides converged at a high-level financial conference dubbed “Developing International Financial Centers in Vietnam” to ink the deal.
The agreement reveals plans to establish forward-thinking policies for the city to boost its transformation as an international hub for finance. The VBA is expected to play an advisory role to regulators and administrators of the central Vietnamese city with an eye toward full-scale integration.
Besides using blockchain and digital currencies for speculation, the VBA and Da Nang have their sights set on mainstream integration in financial circles. Both parties will attempt to push for traditional financial and payment service providers to integrate blockchain-based solutions into their offerings for consumers.
VBA chairman Phan Duc Trung disclosed on the sidelines of the event that the push to attain IFC status rests on three pillars. The first hinges on an “integrated policy framework”, while the second and third pillars include innovative solutions and sustainable growth.
Trung opines that sustainable growth appears to be the hardest hill to climb from the three requirements. To circumnavigate the challenge, the VBA chairman lays out a blueprint for Da Nang’s executive arm to integrate into their long-term plans to attain global financial hub status.
Trung calls for a Made in Vietnam approach toward development, leaning on local solutions rather than a wholesale reliance on foreign offerings. There are whispers of a national blockchain network with Da Nang that is expected to launch a pilot program for digital asset use cases.
By leaning on a regulatory sandbox and Da Nang’s thriving tourist sectors, Trung argues that the city is well on its way to achieving regional dominance.
Zooming out from Da Nang, a clearer picture of Vietnam’s Web3 strategy begins to take form, accentuated by Resolution 259, a mad dash toward adoption. In its national blockchain strategy, the central government plans to establish 20 mainstream Web3 brands in a strong show of commitment.
Vietnam is splurging on deepening its talent pool for local and international firms to achieve this lofty ambition. Bilateral partnerships with the U.S. for emerging technologies have begun yielding impressive benefits for the Southeast Asian country, broadening use cases and adoption figures.
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