Blockchain IoT Market Share, Size, Trends, Industry Analysis Report, By Component (Hardware, Services), By Application (Data Security, Smart Contracts), By Organization Size, By Vertical, And Segment Forecasts, 2023 - 2032
- Published Date:Oct-2023
- Pages: 116
- Format: PDF
- Report ID: PM3782
- Base Year: 2022
- Historical Data: 2019-2021
The global blockchain IoT market was valued at USD 268.65 million in 2022 and is expected to grow at a CAGR of 42.3% during the forecast period.
Market is projected to witness growth due to the increasing adoption of blockchain & IoT device integration, which enhances security by providing decentralized and tamper-proof data storage and communication. Additionally, the growing trend of selectively managing, analyzing, customizing, and sharing data among authorized clients and partners empowers organizations with greater control and flexibility over their data, contributing to market growth. Furthermore, the continuous adoption of this technology by major players is expected to further drive the market's expansion during the forecast period.
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In line with this, in October 2022, Samsung Electronics introduced Knox Matrix, an advanced security solution that utilizes blockchain technology to protect a network of interconnected devices. This system is designed to work in tandem with the user's private blockchain, ensuring heightened security through multi-layered mutual monitoring among the connected devices. The adoption of such technologies by prominent players in the market is expected to be a significant driver for blockchain IoT market growth during the forecast period.
Furthermore, the industry is experiencing a rising trend in the adoption of smart contracts, which are self-executing contracts stored on a blockchain. These contracts enable the automation of various IoT transactions, such as asset tracking, payments, and supply chain management. The integration of smart contracts is anticipated to drive further growth in the industry as they enhance efficiency and streamline processes through automated and transparent execution of transactions.
Increasing adoption of smart contracts in IoT ecosystems streamlines processes, improves efficiency, and reduces reliance on intermediaries, which is expected to drive further market growth over the forecast period. However, the COVID-19 pandemic has significantly impacted various sectors, affecting individuals and corporations alike. During the pandemic, there was a notable surge in internet-based enterprises as industries such as BFSI, healthcare & life sciences, manufacturing, automotive, retail, transportation, and logistics relied more on the internet to provide essential services to their customers.
Despite the increased reliance on the internet, there were challenges in the supply chain, particularly for suppliers of specific hardware components required for implementing blockchain IoT systems. The global shutdown caused a decrease in demand for these hardware components, affecting their availability and creating hurdles in the smooth implementation of blockchain IoT systems.
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Increasing adoption of IOT sensors
In the future, the healthcare & government sectors are anticipated to adopt IoT sensors & blockchain technology to a moderate extent, aiming to enhance the protection of hospitals & individuals during potential future epidemics. Additionally, there is a growing trend of the collaboration between the state-backed initiatives & service providers, leveraging blockchain technology. This trend is anticipated to drive market growth.
For instance, in November 2022, China's state-backed initiative, Xinghuo Blockchain Infrastructure and Facility, partnered with MY EG, Services Berhad (MyEG), a Malaysian digital service provider, to establish and operate an "International Supernode." This collaboration exemplifies Beijing's efforts to extend its global influence in the blockchain domain. The adoption of IoT sensors & blockchain technology in healthcare and government sectors, along with increased collaboration between state-backed initiatives and digital service providers, are likely to propel the market forward in the coming years.
The market is primarily segmented based on component, by application, by vertical, and region.
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By Component Analysis
Hardware segment registered highest growth rate in 2022
Hardware segment grown at the fastest pace. This growth can be attributed to the increasing adoption of IoT devices across various industries, such as industrial automation, smart homes, smart cities, & healthcare. The rising implementation of IoT devices in these industries is driving the demand for hardware components, contributing to the significant growth of this segment. Additionally, the segment's growth is fueled by the increasing demand for specialized hardware capable of effectively supporting and optimizing various IoT applications' connectivity and data management needs.
Software segment held the largest share. This dominance can be attributed to the growing requirement for improved security and data integrity in IoT applications. Additionally, the increasing need for transparency and traceability in supply chains is expected to drive the demand for software and platform solutions further during the forecast period.
By Vertical Analysis
Transportation & logistics segment expected to hold substantial market share in 2022
Transportation & logistics segment is projected to hold significant market share. The segment's growth can be attributed to its ability to provide transparent and immutable records of transactions and events within the transportation and logistics ecosystem. By leveraging real-time and accurate information on inventory status, companies in the transportation & logistics industry can enhance their operational efficiency.
Healthcare segment witnessed steady growth. This growth is primarily driven by the solutions' capacity to efficiently track and trace pharmaceutical products throughout the supply chain. By ensuring the authenticity and origin of drugs, these solutions effectively address counterfeit drug concerns, reduce the risk of medication errors, and enhance patient safety. As a result, the healthcare segment is expected to experience significant growth due to the vital role of these solutions in enhancing patient care and safety.
By Application Analysis
Asset tracking segment expected to hold substantial market share in 2022
Asset tracking segment is projected to hold significant market share. This enhanced visibility enables organizations to optimize their supply chain operations, combat counterfeiting, reduce costs, and ensure compliance with regulations. These advantageous attributes are anticipated to drive the segment's growth significantly during the forecast period.
Smart contracts segment witnessed steady growth. The growth of this segment is driven by the self-execution and automation capabilities of smart contracts in the market. Smart contracts facilitate direct transactions between IoT devices, eliminating the need for intermediaries and manual intervention. This streamlined process leads to faster and more efficient transactions, enhancing overall operational efficiency and increasing transaction speed. These advantages are expected to be significant drivers for the growth of the smart contracts segment.
North America region dominated the global market in 2022
North America dominated the global market. Region's proactive approach to adopting emerging technologies like blockchain & IoT has accelerated digital transformation and fueled growth in various sectors. As these technologies continue to evolve and become more sophisticated, region is well-positioned to lead the way in leveraging their potential to create a smarter, more connected, and secure future. In smart homes and cities, IoT has enabled the creation of connected ecosystems, where devices and systems seamlessly communicate with each other, providing residents with enhanced convenience, energy efficiency, and security.
APAC is likely to emerge as fastest growing region. Governments of countries like China, Japan, & India have been actively adopting and promoting the use of cutting-edge technologies. For instance, in March 2023, the Society for Electronic Transactions and Security (SETS) and the Unique Identification Authority of India (UIDAI) joined forces to conduct research and development in deep tech areas, including IoT Security, blockchain technology, and quantum security. This collaboration is part of the 'Make in India' initiative, a strategic effort by the Indian government to enhance technological capabilities and achieve greater self-reliance in information security.
Key Market Players & Competitive Insights
The block chain IOT market is fragmented and is anticipated to witness competition due to several players' presence. Major service providers in the market are constantly upgrading their technologies to stay ahead of the competition and to ensure efficiency, integrity, and safety. These players focus on partnership, product upgrades, and collaboration to gain a competitive edge over their peers and capture a significant market share.
Key players in the market include Intel Corporation
- Cisco Systems
- IBM Corporation
- KrypC Technologies
- Linux Foundation
- Microsoft Corp.
- In February 2023, China Telecom, collaborated with Conflux Network, a blockchain protocol, to create blockchain-based SIM cards.
Blockchain IoT Market Report Scope
Market size value in 2023
USD 381.40 million
Revenue forecast in 2032
USD 9,107.55 million
42.3% from 2023 – 2032
2019 – 2021
2023 – 2032
Revenue in USD million/billion and CAGR from 2023 to 2032
By Component, By Application, By Organization Size, By Vertical, By Region
North America, Europe, Asia Pacific, Latin America; Middle East & Africa
Report customization as per your requirements with respect to countries, region and segmentation.
key companies in blockchain IoT market are Intel Corporation, IBM Corporation, Microsoft Corp., Cisco Systems.
The global blockchain IoT market is expected to grow at a CAGR of 42.3% during the forecast period.
The blockchain IoT market report covering key segments are component, by application, by vertical, and region.
key driving factors in industrial blockchain IoT market are growing requirement for improved security.
The global blockchain IoT market size is expected to reach USD 9,107.55 Million by 2032.