In a latest report, Technavio, a leading global technology research and advisory company, has predicted that the global digital coin market will grow at a CAGR of over 7% during the period 2016-2020.

“Technavio’s market research analyst predicts the global digital coin market to grow at a CAGR of more than 7% by 2020.  This market is primarily driven by Bitcoin, the leading vendor in the digital currency market”, Technavio said.

The report names Bitcoin, Ethereum, Ripple, Litecoin and Dogecoin as the top vendors in the global digital coin market, while listing Dash, Factom, MaidSafeCoin, Peercoin, Novacoin, Namecoin, and Novacoin as other prominent vendors.

Technavio’s research study segments the global digital coin market into the following three regions –EMEA, Americas, and APAC and takes into account the total supply of digital coins of the top companies that operate from these regions to calculate the market size.

According to the report, EMEA is the largest digital coin market with a market share of close to 50% it added that the investigations of blockchain technologies and digital currencies undertaken by the European Securities and Markets Authority (ESMA) is likely to boost the investment rate in the region.

“The digital coin companies and financial professionals have organized workshops and seminars to create awareness about digital coins in the European markets. Such workshops have spread awareness about the advantages of digital coins, thus leading to its evolution in this market”, said Bharath Kanniappan, a lead analyst at Technavio.

It further noted that initiatives taken by the US government to restructure the monetary system with the help of digital currencies to boost the digital coins’ market in the Americas.

With respect to APAC, Technavio said the region has high demand for payment technologies that process domestic and cross-border transactions. The adoption of faster payment technologies may drive banking and other financial institutions to leverage the digital coin platform, increasing the remittance flow and trading activities in APAC.

Kanniappan noted that Sydney based financial settlement infrastructure solution provider Ripple has generated demand for online money transfer services and has also helped to increase the adoption of digital coin platform by users and small financial institutions.

“The emergence of cryptocurrency technologies has brought changes in the financial economy. Therefore, digital currencies may be considered among the biggest innovations in financial technology firms”, Technavio said. “We expect various stakeholders (such as sovereign nations and corporations in APAC) to leverage the presence of financial technology firms, increasing the scope of cryptocurrency in the financial services sector”.