Global bitcoin payments market expected to reach $3.7 billion by 2031: Research

Private Keys and Hardware Subsectors to Drive BTC Payments Expansion as Demand from Banks and Emerging Economies Continues to Grow grow.

The global bitcoin (BTC) payments market will reach $3.7 billion by 2031, growing at a compound annual growth rate (CAGR) of 16.3% from 2022 to 2031, private keys and hardware driving the expansion of the sector, predicted Allied Market Research in a report published on October 24.

According to the document, the operational demand for efficiency and transparency in payment systems, as well as the growth of data security services and a surge in demand for remittances in emerging economies, are among the main growth factors of the sector in the coming years. The report also stated:

"Furthermore, increasing demand for bitcoins among banks and financial institutions and untapped potential in emerging economies are expected to provide lucrative opportunities for the expansion of the bitcoin payments market during the period of forecast."

In 2021, the private key segment accounted for three quarters of the overall 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 to 2031, followed by the hardware sector which is expected to grow by 19.8% over the same period.

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E-commerce transactions are expected to remain prominent in the industry, growing nearly 20.2% by 2031, according to the report. Asia-Pacific is expected to continue to dominate the market by 2031, although the fastest growth is expected to come from North America with a CAGR of 18.6% over the period.

Referring to hurdles and challenges in the space, the report acknowledges that high deployment costs and low global awareness of the use of Bitcoin may hamper progress in the sector. He noted:

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