The blockchain IoT market is projected to grow from USD 113.1 million in 2019 to USD 3,021 million by 2024; it is expected to grow at a CAGR of 92.92%.
North America is among the major contributors to the blockchain IoT market, and the US accounted for the largest share of the market in North America in 2018. The global blockchain IoT market is dominated by North America as the region is an early adopter of the blockchain. North America is the most advanced region in terms of technology adoption and infrastructure. The presence of key market players here is the main factor driving the growth of the North American blockchain industry. Organizations in this region are gradually moving toward the adoption of blockchain IoT. Businesses have recognized the potential of blockchain IoT in delivering enhanced customer experience. Hence, they have started adopting technology to develop business applications.
Major factors driving the market growth include increasing adoption of IoT, growing need for IoT security, simplifying business processes and affording transparency and immutability, and increasing focus on operational efficiency. Further, underlying opportunities for the blockchain IoT market include higher adoption of blockchain solutions for smart contracts and digital identity and rising government initiatives. Major factors restraining the market growth are uncertain regulatory status and higher latency with an increase in the number of nodes. The lack of awareness about blockchain technology and lack of standards pose major challenges to the blockchain IoT market.
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The blockchain technology has great potential in various application areas (majorly in the Internet of Things (IoT)). The widespread use of IoT devices is observed in several applications, such as smart city projects, smart transportation, vehicular connectivity and autonomous vehicles, smart grids, and smart homes. IoT devices are increasing at a large scale, and various enterprises are innovating newer technology use cases using IoT devices. According to Ericsson’s Mobility Report and IoT Forecast, there would be 18 billion IoT devices by 2022. The increasing computational power of IoT devices aids in carrying out multiple functions in real-time at a faster rate. An IoT sensor may carry critical information, which, when subject to cyber-attacks, can compromise the security of enterprises or organizations.
The blockchain IoT market for the smart city segment is expected to grow at the highest CAGR during the forecast period. Smart city leaders are embracing the blockchain as a cross-cutting platform that connects different services to track data, eliminate security breaches, provide seamless transactions, and offer reassuring transparency for public services. The realization of the concept and empowerment by advances in the IoT domain seems to be closer than ever before.
In application, asset tracking and management is expected to witness the highest CAGR during the forecast period. Asset tracking and management of integrated software is instrumental in tracking and managing physical assets and the performance of equipment on the manufacturing floor. Protection of physical assets such as plants, machinery, and fleet are the backbone of manufacturing operations. These physical assets help in ensuring the integrity of assets, which is the top-most priority of any enterprise. Managing and monitoring the integrity of assets or transactions is easy, and if a change is necessary, a new digital fingerprint can be generated and validated.
APAC is expected to be the largest blockchain IoT market during the forecast period. This market is further divided into China, Japan, South Korea, India and the Rest of APAC. Rest of APAC primarily includes Singapore, Malaysia, Thailand, Australia, and New Zealand. China is the largest market among all APAC countries. China, Japan, South Korea, and India are witnessing growth in blockchain IoT and blockchain start-ups. Blockchain adoption in the developing countries of APAC help organizations transform their business processes. Blockchain applications with IoT help create transparent and decentralized business processes. The key financial and shipping and trading hubs such as Hong Kong and Singapore provide huge opportunities for the adoption of blockchain in various industries.
