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The COVID-19 pandemic has exerted a detrimental impact on the global economy, significantly affecting sectors like BFSI and IT & telecom. Lockdown restrictions, travel limitations, and disruptions in the supply chain have led to a decline in market demand and economic activities. The pandemic-induced challenges, such as trade limitations, manufacturing site closures, reduced production rates, cash flow constraints, and workforce unavailability, have negatively affected stakeholders, leading to a decrease in cash flow margins.
The lockdown measures and workforce restrictions have also hindered the deployment of combined systems remotely, particularly in countries facing limitations in the availability of skilled experts. The closure of manufacturing industries during the lockdown further complicated matters, as essential components of IoT systems, such as various sensors, were unable to be produced and imported due to the stringent measures in place. The widespread global impact on sensor manufacturing locations and the complexities of raw material procurement resulted in a significant hurdle for the blockchain IoT market.
The inability to access complete sets of raw materials impeded the deployment and integration of systems, causing a temporary stagnation in the growth of the blockchain IoT market. In the blockchain IoT market, various stakeholders contribute to the value chain, each playing a crucial role in ensuring the development and functionality of smart connected systems. Hardware manufacturers are integral to the value chain as they supply essential components for home automation solutions. This includes peripherals, sensors, hubs design, security systems, lights, luminaires, and appliances. These devices form the physical infrastructure that is interconnected to enable the functioning of a smart, connected network. Software developers play a pivotal role by creating programs that empower smart devices to operate efficiently.
With the rapid proliferation of connected devices, software developers continually enhance and implement advanced techniques and systems. Platform developers ensure the seamless operation of IoT-based smart homes, enhancing residents' comfort and security. Technology providers contribute artificial intelligence, speech recognition, natural language processing (NLP), and access solutions for smart devices. They establish connections between these devices and an IoT system. Some of these providers also offer digital assistants, enabling users to access various services through smart speakers, enhancing the overall functionality of connected systems. System integrators are responsible for bringing together hardware, software, and network components to create a cohesive and viable product.
These integrators may include device manufacturers and technology providers of smart devices. Their role is to customize smart devices according to their applicability and user requirements. Rigorous quality checks and performance assessments are conducted before the products are forwarded to distributors and resellers for market availability and sale.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Offering, Application, and End-User |
Blockchain IoT Market Highlights:
Blockchain IoT Market Overview
Blockchain IoT Market Size was prized at USD 0.5 Billion in 2022. The blockchain IoT market industry is projected to grow from USD 0.96 Billion in 2023 to USD 179.79 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 92.30% during the forecast period (2023 - 2032). 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.
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
May 2022: IBM cooperated with Web3 to provide a digital native experience, accelerating and enhancing corporate blockchain's future. A hybrid corporate blockchain system could help businesses achieve new business outcomes, including fine-grained security, privacy, auditable regulatory compliance, and competitive advantage protection.
September 2020: Huawei has released Blockchain Service 2.0 (BCS 2.0), an update to its blockchain-based cloud service. The updated platform satisfies the 50,000 Transactions Per Second (TPS) performance requirements, significantly higher than Bitcoin and Ethereum. Furthermore, the BCS 2.0 extension capacity will exceed 1,000 nodes, addressing the needs of commercial and large-scale blockchain networks.
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
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