Global Bitcoin Payments Market Estimated to Reach $3.7 Billion by 2031: Research
The global Bitcoin (BTC) payments market will reach $3.7 billion by 2031, registering a compound annual growth rate (CAGR) of 16.3% from 2022 to 2031, with private keys and hardware driving the sector’s expansion, Allied Market predicted Research in a report published on 24 Oct.
According to the document, operational demand for efficiency and transparency in payment systems, along with growth in data security services and an increase in demand for remittances in emerging economies, are among the most important factors supporting the growth of the sector in the coming years. The report also said:
“Unfortunately, increasing demand for bitcoin among banks and financial institutions and untapped potential in emerging economies are expected to provide lucrative opportunities for the expansion of the bitcoin payment market during the forecast period.”
In 2021, the private keys segment accounted for three-quarters of the total Bitcoin payments market share, according to the report, and the segment is expected to maintain its dominant position throughout the forecast period, with nearly 20.3% CAGR through 2031, followed by the hardware sector which is set to grow 19.8% in the same period.
Related: Tap-to-pay Bitcoin Lightning Bolt Cards Hit El Salvador
E-commerce transactions are likely to retain their relevance in the sector, growing nearly 20.2% by 2031, according to the report. The Asia Pacific region is predicted to continue its market dominance through 2031, although the fastest growth is expected to come from North America, with a CAGR of 18.6% during the period.
Citing the barriers and challenges in the space, the report acknowledges that high distribution costs and low global awareness of the use of Bitcoin may hamper the sector’s progress. It noted:
“Distributed ledger technology has spread from cryptocurrency to a large number of applications in the financial and government industries. However, many people and financial and government industries across developing countries such as India, Africa and Australia are less aware of transactions made using bitcoin payment. , which inhibits the growth of the bitcoin payment market worldwide.”
As reported by Cointelegraph, the cryptocurrency bear market has affected how people pay with crypto, but Bitcoin remains an important payment tool despite high volatility, accounting for more than 50% of all sales on payment service provider BitPay’s platform. The data revealed that the sales volume of BTC payments on BitPay peaked at 87% in 2021 before falling during the bear market in 2022.
