Blockchain Interoperability Market Size - By Protocol (POLKADOT, COSMOS, AION, WANCHAIN, ARK, ICON, CHAINLINK, REN, FUSION), By Solution (Cross-Chain Bridges, Cross-Chain APIs, Federated or Consortium Blockchain), Application, End Use & Forecast, 2023 – 2032

Blockchain Interoperability Market Size

Blockchain Interoperability Market size was valued at USD 275.5 million in 2022 and is projected to register a CAGR of 26.8% between 2023 and 2032, attributed to the increasing cross-chain asset transfer requirements across enterprises.
 

Users and businesses often require transferring assets and data across different blockchain networks. Interoperability solutions facilitate secure and efficient cross-chain asset transfers, enhancing the utility of various blockchain platforms. In January 2023, the decentralized exchange (DEX) Uniswap announced that it would be integrating with the layer-2 scaling solution Polygon to enable cross-chain trading between Ethereum and Polygon. This integration allows users to swap tokens between the two networks without having to pay Ethereum gas fees.
 

Similarly, in February 2023, the decentralized finance (DeFi) platform Aave announced that it would be integrating with Cosmos Hub to enable cross-chain lending and borrowing. This allows users to deposit and borrow assets from Aave on the Cosmos Hub, which offers lower gas fees than Ethereum. These optimistic scenarios will favor the adoption of blockchain interoperability solutions, leading to healthy blockchain interoperability market growth.
 

Different blockchains have unique features and capabilities. Interoperability enables applications to leverage the strengths of multiple platforms, combining functionalities to create more versatile and powerful decentralized applications. For instance, in February 2022, Polygon, a scaling solution for Ethereum, integrated with the Cosmos Hub for cross-chain communication between the two networks. This enabled developers to build dApps that could access the liquidity and security of Ethereum while also taking advantage of the scalability and interoperability of Cosmos. 
 

However, blockchain technology is subject to varying degrees of regulatory oversight in different jurisdictions. Interoperability can complicate matters related to cross-border data sharing, legal compliance, and data privacy. Navigating these regulatory challenges can be a significant barrier to the development and adoption of interoperability solutions.
 

COVID-19 Impact

The COVID-19 pandemic had a positive impact on the blockchain interoperability market. The crisis highlighted the importance of secure and transparent data sharing, driving interest in blockchain solutions. Instances like supply chain disruptions increased the need for interoperability to enhance transparency and traceability. However, the pandemic also slowed down collaborative efforts due to remote work challenges and diverted resources away from blockchain development. Overall, while the pandemic underscored the potential of blockchain interoperability, it also presented hurdles that impacted its growth trajectory.
 

Blockchain Interoperability Market Trends

Rising adoption of blockchain technology will carve a healthy growth trajectory for the blockchain interoperability industry. As enterprises explore the use of blockchain technology, they may need to connect their private or consortium blockchains with public blockchains or other industry-specific networks. Interoperability is crucial for creating comprehensive and efficient business solutions.
 

Citing an instance, in January 2023, Maersk announced that it would be using blockchain technology to track its shipping containers. The company is partnering with IBM to create a blockchain-based system that will track the containers from the time they are loaded onto a ship to the time they are delivered to their destination. This will help Maersk improve the efficiency of its shipping operations and reduce the risk of fraud.
 

Blockchain Interoperability Market Analysis

The dApps segment held over 36% of the blockchain interoperability market share in 2022. Blockchain interoperability solutions are gaining popularity in decentralized applications due to their ability to transcend the limitations of single-chain ecosystems. These solutions enable seamless communication between diverse blockchain networks, fostering cross-chain asset transfers, enhanced functionality, and scalability. As decentralized applications expand, interoperability ensures access to a broader user base, harnessing the strengths of various blockchains. This fosters innovation, enabling developers to create more versatile and powerful applications that offer a holistic and interconnected user experience.
 

The BFIS segment accounted for 25% of the blockchain interoperability market share in 2022. However, the healthcare segment is set to grow at its highest CAGR during the forecast period, led by the need for secure, transparent, and efficient data sharing. These solutions enhance the integrity of medical records, streamline interoperability between disparate systems, and improve patient data management. With the potential to ensure accurate medical histories, facilitate research collaboration, and maintain patient privacy, interoperability solutions address key industry challenges. Additionally, they enable seamless integration of IoT devices and smart contracts, paving the way for improved patient care, research advancements, and administrative efficiency.
 

North America blockchain interoperability market was over 36% of revenue share in 2022, due to their potential to address complex business challenges. As the region embraces diverse blockchain networks, the need for seamless communication and data exchange becomes paramount. Interoperability enables industries to optimize supply chains, enhance financial systems, and improve regulatory compliance. With a focus on innovation and technology adoption, North American businesses are drawn to interoperability's ability to unlock the full potential of blockchain networks, fostering collaboration and creating competitive advantages.
 

Blockchain Interoperability IMarket Share

Major companies operating in the blockchain interoperability market are :

• Biconomy
• Chainport
• Datachain
• Fusion Foundation
• GAVS Technologies
• INERY
• LEEWAYHERTZ
• LI.F
• Liquid Apps
• ONTOLOGY
• Oracle Corporation
• ORB Labs
• Polyhedra Network
• Quant Network
• R3
• Riodefi.

These companies focus on collaborating with other blockchain projects, technology providers, and industry players to help expand the reach and capabilities of interoperability solutions.   
 

Blockchain interoperability Industry News

• In July 2023, Quant announced a partnership with Hedera Hashgraph. This partnership will allow Quant's Overledger technology to be used on Hedera Hashgraph, enabling developers to build interoperable applications.
   

This blockchain interoperability market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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Market, By Protocol

• POLKADOT
• COSMOS
• AION
• WANCHAIN
• ARK
• ICON
• CHAINLINK
• REN
• FUSION
• Others

Market, By Solution

• Cross-Chain Bridges
• Cross-Chain APIs
• Federated or Consortium Blockchain
• Others

Market, By Application

• Digital Asset/NFTs
• Decentralized applications (dApps)
• Cross-Chain Trading & Exchange
• Cross-Chain Messaging & Data Sharing

Market, By Vertical

• BFSI
• Healthcare
• Gaming & Entertainment
• IT & ITES
• Telecommunication
• Food & agriculture
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ 
• Latin America
  • Brazil
  • Mexico
• MEA
  • South Africa
  • UAE
  • Saudi Arabia