Blockchain IoT Market Analysis

Blockchain IoT Market Overview

Blockchain IoT Market is projected to grow from USD 1.84 Billion in 2024 to USD 179.79 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 77.24% during the forecast period (2024 - 2032). Additionally, the market size for Blockchain IoT was valued at USD 0.96 billion in 2023.

The growing need for IoT security and the trend towards optimizing company processes to increase productivity are the key market drivers strengthening market growth. Along with these factors, smart contracts, increased government initiatives, and the rapid acceptance of blockchain services for digital identification make up the main growth prospects for the blockchain IoT industry.

Figure 1: Blockchain IoT Market Size, 2024-2032 (USD Billion)

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Blockchain IoT Market Trends

Growing concern for IoT security is driving the market growth

Market CAGR for blockchain IoT is driven by the rising concern regarding IoT security. Due to the expansion of internet services, the Internet of Things technology is now widely employed. According to "The Mobile Economy 2020" by the GSM Association, 25 billion internet-connected devices will be worldwide in 2025, up from 12 billion in 2019. Additionally, the risk of cyber threats has increased due to the growing use of online services. According to a report from 2020, around 67% of businesses have experienced cybersecurity risks, and employees carry out 34% of cybercrimes. However, because of its decentralization and emphasis on peer-to-peer networks, blockchain technology will increase the security of IoT applications.

Blockchain technology's ultra-transparent ledger system keeps track of the source of the digital asset. With regard to cryptocurrencies, digital IDs, copyright and royalty protection, real estate, tax regulation and compliance, administering the Internet of Things, and other areas, the technology's security and transparency have been used effectively and over time. Its decentralized characteristic makes it more difficult to tamper with, increasing user popularity.

It is a cost-effective and preferable choice due to the little human participation, the elimination of third-party verifications, better transparency, the peer-to-peer network, and simplicity of usage. Its widespread use across many industrial sectors, including BFSI, healthcare, and manufacturing, has increased its appeal. A significant sum of money—roughly USD 50 billion—is being invested by some of the largest banks in the world, including Banco Santander, UBS, State Street Corp, Credit Suisse Group AG, Bank of New York Mellon Corp, Barclays PLC, HSBC Holdings Plc, and Deutsche Bank AG, in the creation of a blockchain-based digital cash settlement system. Thus, driving the blockchain IoT market revenue.

Blockchain IoT Market Segment Insights

Blockchain IoT Offering Insights

The blockchain IoT market segmentation, based on offering, includes hardware, software, and services. The software segment dominated the market, accounting for 53.6% of market revenue (0.3 Billion). The main factor driving the greatest market share of the software sector is the increased emphasis on software development for implementing blockchain IoT. Software dominance is expected to be maintained in the near future by several causes, including implementation in new industries. With the widespread use of IoT devices and the rising popularity of peer-to-peer networking, the hardware market has a sizable portion. This is mostly because the hardware in IoT systems performs activities like delivering data to cloud systems where the necessary tasks are being carried out and retrieving data from the source site.

Figure 1: Blockchain IoT Market, by Offering, 2022 & 2032 (USD Billion)

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Blockchain IoT Application Insights

The blockchain IoT market segmentation, based on application, includes smart homes, data sharing, smart contracts, data security, asset tracking and management, and others. The smart contracts category commands the biggest market share since it provides many advantages, including the autonomous execution of some activities, corporate collaborations, and commercial agreements. The key elements for its largest share are the straightforward process, independence, faith in others, safety, speed, cost-savings, and accuracy.

January 2021: IBM and Thai Reinsurance Public Company Limited (Thai Re) cooperated in establishing the Insurer Network, a smart reinsurance contract platform built on IBM blockchain technology and hosted on IBM Cloud. Thai Re will increase efficiency and speed in executing reinsurance contracts with a secure single version of truth documentation thanks to IBM Blockchain technology built on the highly secure IBM Cloud.

Additionally, asset tracking and management was the fastest-growing application in the market. It is advantageous for creating algorithms that may be used to track and better organize assets.

Blockchain IoT End-User Insights

The blockchain IoT market segmentation, based on end-user, includes automotive, supply chain and logistics, manufacturing, healthcare, construction, retail, government, energy and utility and others. The construction segment dominated the market in 2022. Blockchain technology makes smart home appliances unchangeable and secure against cyberattacks. Construction owners can also use blockchain technology to securely provide third parties access to only certain rooms and gadgets rather than granting full access.

Increasing market effectiveness benefits facility management as well. During the forecast period, the fastest CAGR growth is expected in the healthcare sector. The healthcare industry is adopting blockchain technology at a faster rate thanks to the proliferation of laws protecting consumer data. In addition, the COVID-19 epidemic has heightened the need for digitalization in the healthcare industry, which has prompted the adoption of blockchain technology.

Blockchain IoT Regional Insights

By region, the report offers market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia-Pacific Blockchain IoT Market area will dominate this market due to its high rate of technology adoption, supportive governmental policies, and rising ICT investment. In terms of international payments and the financial and medical industries, Singapore has the highest use of blockchain technology. Moreover, China’s blockchain IoT market held the largest market share, and the Indian blockchain IoT market was the fastest-growing market in the region.

Further, the leading countries investigated in the market report are US, Canada, France, German, Italy, UK, Spain, Japan, China, Australia, India, South Korea, and Brazil.

Figure 2: BLOCKCHAIN IOT MARKET SHARE BY REGION 2022 (USD Billion)

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

The North American blockchain IoT market accounts for the second-largest market share. The broad adoption of advanced IoT is driving growth in the local market. According to the GSM Association's publication Mobile Economy 2020, there were 2.9 billion IoT connections in the region in 2019, which is predicted to increase to 5.4 billion by 2025. Additionally, the region's financial stability has enhanced the adoption of the newest IoT devices and opened several avenues for new investments. Further, the U.S.A. blockchain IoT market held the major market share, and the Canadian blockchain IoT market was the fastest-growing market in the region.

Europe’s Blockchain IoT Market is expected to expand at a rapid rate from 2023 to 2032 because important enterprises are there. Businesses in the region are embracing blockchain technology more frequently, driving regional market expansion. The surge in consumer cryptocurrency use is another important factor showing the expansion of the regional market. Further, the German blockchain IoT market held the largest market share, and the UK blockchain IoT market was the rapidly-growing market in the region.

Blockchain IoT Key Market Players & Competitive Insights

Leading market players are largely investing in research and development to expand their product lines, which will help the blockchain IoT market, grow even more. The launch of new products, larger-scale mergers and acquisitions, contractual agreements, and collaboration with other organizations are significant market developments in which market participants engage to increase their presence. The blockchain IoT industry must provide affordable products to expand and thrive in a more competitive and challenging market environment.

One of the major business strategies manufacturers use in the blockchain IoT industry to increase market sector and benefit customers is local manufacturing to lower operational costs. In recent years, the blockchain IoT industry has stipulated some of the most important medicinal benefits. Major players in the blockchain IoT market, including IBM Corporation (US), KrypC (India), Ethereum Foundation (Switzerland), Intel Corporation (US), and others, are funding operations for research and development to boost market demand.

Samsung Electronics is a multinational electronics corporation that makes and distributes a diverse range of products, such as smartphones, semiconductor chips, printers, household appliances, medical equipment, and telecom network equipment. The semiconductor industry generates roughly half of its profit, while the mobile handset business generates another 30%-35%, however, these percentages vary depending on the fortunes of each of these sectors. In October 2022, During its developer conference (SDC), Samsung revealed Knox Matrix, a new security solution that uses blockchain technology to protect an ecosystem of devices. Samsung Knox is a mobile security framework developed by Samsung that has achieved great development. Samsung Knox Matrix will act as a user's private blockchain system, enhancing security through multi-layered mutual monitoring of your linked devices.

Intel is the world's leading logic chip manufacturer. It develops and manufactures microprocessors worldwide for the personal computer and data center sectors. Intel invented the x86 microprocessor architecture. It was a major supporter of Moore's law for advancements in semiconductor production, albeit the company has recently experienced manufacturing delays.

In April 2022, Intel provided details about their new Intel Blockscale ASIC. The application-specific integrated circuit (ASIC), built on years of Intel R&D, would offer users computing for proof-of-work consensus networks that use little energy. It enables decentralized and distributed computing, which opens the door to new business models. To enable this new era of computing, Intel is developing technologies that can provide an optimal mix of compute throughput and energy efficiency regardless of a customer's operating environment.

Key Companies in the blockchain IoT market include

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  Intel Corporation (US)

  
  


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  Microsoft Corporation (US)

  
  


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  IBM Corporation (US)

  
  


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  Cisco Systems (US)

  
  


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  Amazon.com Inc. (US)

  
  


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  R3 (US)

  
  


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  Chronicled (US)

  
  


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  Ethereum Foundation (Switzerland)

  
  


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  Filament (Nevada)

  
  


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  KrypC (India)

  
  


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  The Linux Foundation (US)

  
  


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  ArcTouch (US)

  
  


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  Filament (Nevada).

  
  

Blockchain IoT Industry Developments

Jul-2023: With Access and Query, AWS is enhancing Amazon Managed Blockchain (AMB). AMB’s new features allow developers to easily interact with public blockchains in order to create highly scalable solutions. Also, AMB Access represents a fresh, non-mining serverless portfolio of full blockchain nodes, while AMB Query offers the same structured and standardized blockchain data from different chain networks.

Jun-2023: R3 developed Corda as an update to its blockchain platform. The introduction was aimed at expanding the availability of the platform as well as interoperability and scalability with other DLT networks. This launch also includes security enhancements, optimization for scalability, and simplification of development processes so that any developer can build Corda applications.

May 2023: Meta, a worldwide IT company, has partnered with The Linux Foundation. LF Connectivity is an open-source project which expands networking and connectivity technologies for emerging applications. In addition, it would be good for digital transformation if LF Connectivity will be able to move forward.

Jan-2023: Amazon partnered with Ava Labs, a next-generation blockchain platform. The objective of this partnership is to drive wider adoption of blockchains across businesses, governments, and institutions. Further, this partnership will not only enable simple launching and managing individual nodes on Avalanche but also bring better robustness and flexibility into the network for developers.

Apr-2022: Intel came up with an Intel Blockchain ASIC named Blockscale that hits 580 GH/s hash rate. It aims to provide energy-efficient hashing for proof-of-work consensus networks. What’s more, specializing in cryptography, hashing techniques, and ultra-low voltage circuits by Intel makes it possible for blockchain systems to improve their computational resources without sacrificing sustainability.

Jun-2021: IBM bought Envizi, which provides software solutions focused on environmental performance management through data analytics tools. Consequently, IBM can focus on developing AI-driven applications like IBM Maximo asset management solutions, IBM Environmental Intelligence Suite, or IBM Sterling supply chain solutions, hence assisting businesses in designing more sustainable supply chains and operations.

Blockchain IoT Market Segmentation

Blockchain IoT Offering Outlook

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  Hardware

  
  


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  Software

  
  


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  Services

  
  

Blockchain IoT Application Outlook

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  Data Sharing

  
  


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  Smart Homes

  
  


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  Data Security

  
  


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  Smart Contracts

  
  


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  Asset Tracking and Management

  
  


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  Others

  
  

Blockchain IoT End-User Outlook

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  Supply Chain and Logistics

  
  


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  Automotive

  
  


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  Healthcare

  
  


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  Manufacturing

  
  


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  Retail

  
  


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  Construction

  
  


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  Government

  
  


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  Energy and Utility

  
  


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  Others

  
  

Blockchain IoT Regional Outlook

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  North America

  
  

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  US

  
  


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  Canada

  
  

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  Europe

  
  

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  Germany

  
  


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  France

  
  


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  UK

  
  


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  Italy

  
  


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  Spain

  
  


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  Rest of Europe

  
  

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  Asia-Pacific

  
  
  
  
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    China

    
    
  
  
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    Japan

    
    
  
  
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    India

    
    
  
  
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    Australia

    
    
  
  
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    South Korea

    
    
  
  
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    Australia

    
    
  
  
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    Rest of Asia-Pacific

    
    
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America