The global blockchain IoT market is projected to garner growth at a CAGR of 73.5% during the estimate period 2021 to 2030 and to reach USD 31.2 billion by 2030
The global blockchain IoT market size was valued at US$ 78.5 million in 2020, according to new report study by Precedence Research.
Blockchain technology is an arrangement of distributed ledger technology that garners massive attention in domains outside its crypto currency origins since around the year 2014. Blockchain at its crux is a cryptographically protected, distributed register that permits for the safe transfer of information among parties.
Traditional IoT arrangements are reliant on a central architecture. Data is directed from the device to the cloud where the information is managed using analytics and then directed back to the IoT equipment. With thousands of millions of devices set to enter IoT networks in the approaching years, this category of centralized arrangement has very restricted scalability, exposing billions of vulnerable points that jeopardize network security and can become extremely costly and sluggish if third force have to continually check and validate all the micro-transactions. Smart contracts in the blockchain systems allow devices to operate securely and independently by creating contracts that are only implemented upon achievement of specific necessities. It not just allows for scalability, cheaper transfers, and better automation, but the smart contracts can also avert overrides by persons that want to exploit the data for their personal benefit. Data is shared over a distributed, cryptographically protected network, meaning it is very tough to jeopardize the network safety.
What are the Growth Factors
Factors such as growing adoption of Internet of Things (IoT), rising focus on operational efficiency, increasing requirement for IoT security, streamlining of business processes, better transparency offered by blockchain technology, increasing adoption of blockchain smart contracts are driving the growth of blockchain IoT market. Moreover, growing implementation of blockchain technology in the healthcare sector for reducing operational costs is driving the blockchain IoT market growth across the world. Additional features that are expected to fuel this business are integration of latest technologies and growing investment by governments.
As millions of systems, services, and devices get linked, the consumers are receiving benefit from the enhanced lifestyle and businesses are becoming more competent as they minimalize their operational expenses and raise their asset application. The blockchain IoT market is anticipated be primarily driven by more ubiquitous and inexpensive sensors that translate the physical data to digital matter. The usage, application, and development of IoT will probably continue to grow with the launch of 5G (fifth-generation) cellular technologies and systems. The 5G technology allows bigger number of equipment’s to be connected concurrently to a network and interconnect with minimal adjournments, supporting not just consumer but commercial use of IoT systems and devices.
- Among the component segment, software’s dominated the overall market in 2020. High activity in the area of software development for better implementation of blockchain IoT technologies is the foremost factors attributing to its large market share.
- The asset management and tracking segment accounted for the major share of revenue in the application segment with more than 31% share in 2020 due to high use of blockchain IoT for streamlining operational expenses. Data Security segment is anticipated to grow at the uppermost CAGR through the forecast duration.
- Transportation accounted for the largest revenue in the end-use industry segment. Early implementation of blockchain IoT technology in the transportation sector for better logistics is the key reason for high market share. Smart City segment is expected to grow at the highest growth rate through the estimate duration.
- Microsoft and Cisco Systems accounted for a significant share of the global blockchain IoT market.
The report includes information for Asia Pacific, North America, Latin America, Europe, Middle East, and Africa. In 2020, the North America region dominated the worldwide market with a market share of higher than 45%. The U.S. indicated the highest slice in North America principally due to early application of latest technologies. Moreover, availability of latest technology infrastructure also supported the high market portion of North America.
Europe was the subsequent significant market chiefly due to presence of skilled professionals. Presence of major companies in the European region is also expected to lift the demand for blockchain IoT in the anticipated time-span. The Asia Pacific region is projected to grow at the highest CAGR of around 86.2% in the estimate period due to increasing investment by governments on latest technologies. Latin America and Middle East and African region will display noticeable growth.
Key Market Players and Strategies
The key companies functioning in the worldwide blockchain IoT market are The Linux Foundation, KrypC, Microsoft, Amazon, Ethereum Foundation, Cisco Systems, IoTEX, IBM, Intel, and R3 among others.
Increased spending on research and development along with mergers, acquisition, and collaborations are the important strategies taken up by manufacturers operational in the global blockchain IoT market. Moreover, leading companies are investing heavily on research for the development for implementation of blockchain IoT in new sectors. In January 2020, International Trust Machines Corp. (ITM), a Taiwanese blockchain firm, advertised a novel blockchain SDK for Azure IoT chipsets which enhances the safety and practicability of edge-positioned blockchain utilization.
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