China's Blockchain Market (III)

Source: Fazzaco 2020-07-09

2. Blockchain companies

Through several years of growth, China’s blockchain market began to take shape, and an increasing number of enterprises emerged. Recent statistics showed that by December 2018, China has 672 enterprises under normal operation that specialized in blockchain technology support, products, and solutions. The whole industry was worth 1 billion yuan, and its derivative industries including product transaction and education were worth about 4 billion yuan.

A relatively complete blockchain industry chain was created, which was growing at a fast pace. The upstream enterprises focus on hardware and infrastructure such as miners and chips, basic protocol, and bottom basic platform. Midstream enterprises focus on general blockchain application and technology extended platform, such as smart contracts, fast computation, information safety, data service, and distributive storage. Downstream enterprises focus on providing customized blockchain application of different forms for end users (individuals, companies, and governments) in fields like finance, supply chain management, medicare, and energy resources.

The period between 2016 and 2018 saw broad business expansion of large-scale IT companies and the boom of start-up to attract finance and raise funds. In 2018, China’s blockchain startups witnessed an overall good performance. Under the background of declining market value and price of encrypted currency worldwide, China’s enterprises made substantial development in Bitcoin technology and application by devoting to bottom technology R&D with unremitting efforts under the help of government departments and blockchain non-governmental societies.

From 2017 to 2018, investment and fund-raising in China’s blockchain industry surged both in value and frequency. Many blockchain enterprises and projects were heavily funded. China also made initial achievements in blockchain funds, with several funds issued in Beijing, Shanghai, Hangzhou, and Shenzhen.

China now has 68 blockchain research institutions, most of which are located in metropolitan cities such as Beijing and Shanghai. At the same time, China becomes a world leader in patent application. In 2018, 67% of blockchain patents application came from China.

IDC’s “Worldwide Blockchain Spending Guide, 2020V1″expects China to remain the second-largest blockchain market in 2020, with total spending set to hit USD$470 million or nearly 11% of a projected global spend of $4.28 billion. IDC also anticipated China’s blockchain market to see average per annum compound growth of 60% during the period from 2019 to 2023.

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China's Blockchain Market (III)

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