As per the report published by Fior Markets, the global Blockchain IoT market is expected to grow from USD 258 million in 2020 and reach USD 5041.55 million by 2028, growing at a CAGR of 45% forecast period 2021-2028.
Blockchain is a distributed ledger technology that is used with the Internet of Things to enable machine-to-machine communication. It uses a set of transactions saved in a database, double-checked by many sources, and recorded in a shared ledger covering all nodes. Users’ network-based requests for obtaining backend data are connected to the network using blockchain IoT software. The blockchain program includes the node application, consensus process, virtual machines, and shared ledger. Blockchain is a relatively new technology that is used for a variety of applications, including network security. All major IoT platform suppliers have already launched research and development on blockchain technology for further examination. For all parties concerned, the marriage of IoT with blockchain opens up new possibilities, decreasing inefficiencies, boosting security, and increasing transparency while enabling secure machine-to-machine transactions.
The marriage of IoT and blockchain offers several potential benefits, including the ability of an intelligent device to operate independently of a centralized authority. It can also monitor how gadgets interact with one another. Building a decentralized IoT platform would help ensure compatibility with a blockchain network, but because IoT sensors rely on central computation and storage resources, configuring them to manage their own compute and data storage might be complex. Further, blockchain technology allows businesses to collect data on edge devices in an IoT system, lowering device maintenance and data transit costs.
Growing acceptance of blockchain-based IoT solutions, broad usage of IoT devices, enabling secure transactions, robust encryption, simpler processes supported by transparency, and optimizing daily operations are the reasons driving the market. Lack of awareness, processing power, IoT network security, storage challenges, scalability, and technological concerns are all obstacles limiting industry growth. Higher usage of blockchain-based IoT solutions and forthcoming 5G rollout and adoption is likely to drive market expansion.
Key players operating in the global Blockchain IoT market include IBM, Microsoft, Intel, Ethereum Foundation, Amazon Web Services, Factom, Huawei, Cisco, SAP, The Linux Foundation, Waltonchain, Chronicled, IoTeX, Discovery, and NetObjex. The key players are now focusing on adopting strategies such as product innovations, mergers & acquisitions, recent developments, joint ventures, collaborations, and partnerships to gain a significant market share in the global Blockchain IoT market.
The software & Platform segment dominated the market and held the largest market share of 39% in the year 2020
Based on components, the global Blockchain IoT market is segmented into Hardware, Software & Platform, and Services. The software & Platform segment dominated the market and held the largest market share of 39% in 2020. This growth is attributed to the fraud detection results, user behavior data with the rest of the enterprise architecture via real-time demand tools, quick and simple data gathering and enhanced predictive capabilities, secure transactions, optimizing their daily operations, and reduced operational costs.
Asset Tracking & Management segment dominated the market and held the largest market share of 43% in the year 2020
Based on application, the global Blockchain IoT market is segmented into Smart contracts, Security, and Asset Tracking and Management. The Asset Tracking and Management segment dominated the market and held the largest market share of 43% in 2020. This growth is attributed to adopting blockchain IoT solutions, increasing operational efficiency & a secure environment, and driving transparency. In addition, the combined capability of IoT and blockchain aids in the discovery of patterns, malfunctions, and anomalies, allowing for faster transaction processing, increased supply chain traceability, and cost savings.
