China’s BaaS Market Size Reached $188M in 2021

According to a report released by IDC on July 5, China’s blockchain-as-a-service (BaaS) market reached $188 million in 2021, improving further from a strong 2020, with a growth rate of 92.6%.

From the perspective of industry application of BaaS services, BaaS platforms serving the government industry account for more than 40% of the whole industry. Financial institutions can obtain clearer ROI by deploying blockchain, and BaaS revenue accounts for 20% of the whole industry. By contrast, the construction demand of manufacturing, retail and wholesale, transportation and energy industries in BaaS itself is slightly lacking.

In terms of market structure, internet tech firms and cloud vendors are still the main technology providers in the country’s BaaS market, but the overall market concentration has declined, and the market share of the top four companies has dropped from 67.3% in 2020 to 59.0%. More independent blockchain technology providers and industry companies have become more competitive with one another in grabbing market share.

According to the report, Ant Group ranks first with a market share of 24.4%, while Tencent Cloud and Huawei Cloud rank second and third with market shares of 16.2% and 11.5% respectively. This year is the second consecutive year that IDC has released a market share report on Chinese BaaS manufacturers, and Ant Group’s blockchain has ranked first both times.

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Hong Wanting, a senior analyst of IDC China Blockchain Market, said: “China’s BaaS market has maintained rapid growth driven by policy and deep layout of traditional application fields. In 2021, the popularity of Web3, NFT and other fields continued to rise. While paying attention to traditional fields, enterprises need to explore more new scenario needs.”