Blockchain IOT Market Will Grow at CAGR of 54% By 2032

Published Date : 13 Dec 2023

The global blockchain IOT market size surpassed USD 280 million in 2022 and is anticipated to reach around USD 20,938.59 million by 2032, growing at a CAGR of 54% from 2023 to 2032.

Blockchain IOT Market Size and Growth Rate From 2023 To 2032

Market Overview

The blockchain IoT (Internet of Things) market refers to the integration of blockchain technology with the Internet of Things ecosystem. This integration aims to address various challenges associated with the security, transparency, and efficiency of IoT networks. Technologies nowadays are developing at a high speed and fast pace, making human life more accessible and easier to survive than before. Among these, blockchain technology has recently emerged and is widely used in business sectors.

It is specifically used in the finance and banking domains as it provides the highest possible security, unlike other traditional transactions processes. Utilizing blockchain technology, data can be stored and encrypted so that it's nearly impossible to tamper with unknown sites or hackers. The data is further stored in an extensive network of computers, and each device has an exact duplicate copy of the data to eliminate centralization.

Blockchain provides a platform for tracking and securely recording the data of assets that spread across businesses. The integration of IoT power and blockchain technology aims to provide a highly reliable and secure platform to share data within the enterprise and with other networks with fewer hindrances.

For instance, it is estimated that enterprises will depend more on blockchain-generated contracts in the upcoming years. For instance, the NFT marketplace is reviving and may become widely used. Central bank digital currencies are also gaining momentum as these banks explore more digitalized currency. Another trend that may be seen in the near future is merging blockchain with newer technologies like AI, metaverse and web3. These estimated factors are observed to act as growth factors for the blockchain IOT market.

Regional Insights

North America dominated the global blockchain IOT market in 2022, as it has a proactive approach towards emerging technology like IoT and blockchain. The region has witnessed accelerated growth in various sectors. Furthermore, the region has an immense potential to transform into a technologically advanced system like from an ecosystem of connected communication devices into more seamlessly connected systems, as it offers convenience, efficiency and top-level security. Along with this, Asia Pacific is observed to witness the fastest rate of growth in the blockchain IoT market in the upcoming period.

The region is witnessing a robust pace of development in many verticals like manufacturing, logistics, transportation, healthcare and retail. Whereas the expansion of the e-commerce sector is also observed to supplement the market’s growth. These verticals have the most mobility in the market. Nations such as India, China and Japan are observed to be the largest contributors for the market.

For instance, to conduct profound research in the tech area, SETS and UIDAI have joined arms that include research and development in technical areas like quantum security, IoT and blockchain security. The purpose is to enhance technological capabilities and self-sufficiency. As it is necessary to keep in check with other competitive enterprises, market providers continue to grow and upgrade to revive their technology.

Blockchain IOT Market Report Scope

Report Coverage Details
Market Revenue in 2023 USD 429.80 Million
Projected Forecast Revenue by 2032 USD 20,938.59 Million
Growth Rate from 2023 to 2032 CAGR of 54%
Largest Market North America
Base Year 2022
Forecast Period 2023 to 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa


Market Dynamics

Driver

Emergence of automated vehicles

Blockchain IoT plays a significant role in the automotive industry and has impacted multiple industries all over the world. The implementation of blockchain technology in the automotive industry is observed to act as a driver for the market. Automated vehicles with decentralized networks are more convenient for many users, enabling them to exchange data processing quicker and more accurately to take proper actions.

Blockchain technology provides a decentralized and tamper-resistant ledger, ensuring that the data generated by automated vehicles is secure and has not been manipulated. This is essential for maintaining trust in the accuracy of data for decision-making. The convergence of blockchain and IoT technologies with the rise of automated vehicles introduces innovative solutions to enhance security, transparency, and efficiency in the transportation ecosystem.

Restraint

Scalability concerns

Scalability and processing time\power size of the blockchain record might lead to centralization over the period, which requires some records management to reduce any hindrances. IoT ecosystems comprise many devices with different capabilities and work in various manners. Not all of them will run the algorithms for similar encryption with the desired speed and efficiency. Storage will also be a concern as the ledger has to be stored in the nodes, which takes up more space eventually.

Opportunity

Rising implementation of IoT by government sector

The collaboration of IoT and blockchain can open up unparalleled opportunities in the government sector by enhancing the IoT ecosystem in various manners. The implementation of the same by the government sector across various countries is observed to offer an opportunity for the growth of the blockchain IoT market.

Governments deploy IoT devices for various purposes, including smart cities, public safety, and infrastructure management. The integration of blockchain with IoT enhances the security and trustworthiness of data generated by these devices. Blockchain's decentralized and tamper-resistant nature ensures that the data collected from IoT devices is secure, transparent, and immune to unauthorized alterations, addressing concerns related to data integrity and trust.

Government agencies often need to share data across departments and with external entities. Blockchain enables secure and transparent data sharing among authorized parties. In the context of IoT, where data is generated by a multitude of devices, blockchain ensures that the data is shared in a tamper-proof and auditable manner, promoting collaboration while maintaining data integrity.

Recent Developments

  • IBM has started its collaboration with Thai Reinsurance Public Ltd. IBM has blockchain technology built on a secured cloud. The collaboration, in turn, enable Thai Reinsurance to acquire a high speed and efficiency in processing reinsurance contracts with high security.
  • In March 2022, IOTEX gathered information from tremendous potential IoT devices from various regions and fed it into the blockchain to generate a reliable and independent state of data that can be easily understandable and verifiable. It collaborates with Google Cloud to accelerate the global expansion of this technology.
  • In October 2022, Samsung launched the Knox matrix. It's a newer, more trustworthy version adapted for security concerns and its solutions. It involves blockchain technology that acts as a safeguard for data exchange to any device. Samsung announced it during its developers' conference. Knox is a type of framework that provides more security, and it has made significant changes in mobile devices, followed by the excellent performance of the device.
  • In March 2023, OBERTECH integrated IoT and blockchain technology to provide a complete digital ecosystem connecting supply chain participants and reducing data redundancy.

Key Market Players

  • The Linux Foundation
  • KrypC
  • Microsoft
  • Amazon
  • Ethereum Foundation
  • Cisco Systems
  • IoTEX
  • IBM
  • Intel

Market Segmentation

By Component

  • Services
  • Hardware
  • Software

By Application

  • Data Security
  • Asset Management and Tracking
  • Smart Contracts
  • Data Sharing
  • Others

By End-Use Industry

  • Retail
  • Transportation
  • Smart City
  • Manufacturing
  • Construction
  • Consumer Electronics
  • Healthcare
  • Others

By Organization Size

  • Large Enterprises
  • SMEs

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