Blockchain IoT Market Size, Share & Trends Analysis Report By Component (Hardware, Services), By Application (Data Security, Smart Contracts), By Organization Size (SMEs, Large Enterprises), By Vertical, And Segment Forecasts, 2023 - 2030

Report Overview

The global blockchain IoT market size was estimated at USD 351.9 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 58.2% from 2023 to 2030.The growing adoption of the integration of blockchain and IoT devices enhances security by enabling decentralized and tamper-proof data storage and communication, which is expected to drive market growth. Similarly, the growing trend to selectively manage, analyze, customize, and share data among authorized clients and partners as it empowers organizations to have greater control and flexibility over their data, is anticipated to boost the market growth over the forecast period. Furthermore, continuous adoption of the technology by major players is anticipated to augment the market growth.

For instance, in October 2022, Samsung Electronics launched Knox Matrix, an improved security solution that implements blockchain technology to safeguard an ecosystem of devices. The Knox Matrix is expected to act in accordance with the user’s private blockchain system, which will enhance security through multi-layered mutual monitoring with the help of connected devices. Such adoption of technologies by key market players is expected to drive market growth over the forecast period. In addition, the emerging trend of the adoption of smart contracts is expected to drive industry growth. These self-executing contracts, stored on a blockchain, enable the automation of various IoT transactions, including asset tracking, payments, and supply chain management.

This trend streamlines processes, enhances efficiency, and reduces reliance on intermediaries in IoT ecosystems, which is anticipated to further augment the market growth over the forecast period. The COVID-19 pandemic has had a significant impact on various sectors, affecting both individuals and corporations. The internet ecosystem has played a critical role globally, as reliance on internet-based enterprises has increased due to the pandemic. Industries, such as BFSI, healthcare & life sciences, manufacturing, automotive, retail, transportation, and logistics, have increasingly embraced the Internet to provide essential services to their customers. However, suppliers have experienced a decrease in demand, mainly due to the global shutdown affecting the availability of specific hardware components required for implementing blockchain IoT systems.

Looking ahead, the healthcare and government sectors are expected to moderately adopt IoT sensors and blockchain technology to enhance the protection of hospitals, government buildings, and populations during future epidemics. Moreover, the growing trend of leveraging blockchain technology globally with the help of collaboration between state-backed initiatives and digital service providers is expected to propel market growth. For instance, in November 2022, China's Xinghuo Blockchain Infrastructure and Facility, a state-backed initiative, collaborated with MY EG, Services Berhad (MyEG), a Malaysian digital service provider, to establish and operate an "International Supernode". This partnership reflects Beijing's ongoing efforts to extend its global influence in the blockchain domain. Such strategies by key players are expected to fuel market growth.

Component Insights

On the basis of components, the global market has been further categorized into hardware, software & platform, and services. The hardware component segment is expected to register a significant CAGR of 56.6% over the forecast period. The growth of the segment is attributed to the rising implementation of IoT devices in numerous industries, which include industrial automation, smart homes, smart cities, and healthcare.

The segment growth is also driven by the high demand for specialized hardware that can support and optimize diverse IoT applications' connectivity and data management requirements. The software and platform component segment accounted for the largest revenue share of 51.6% in 2022. This can be attributed to the need for enhanced security and data integrity. Moreover, the growing need for transparency and traceability in supply chains is expected to augment the demand for software and platform segment over the forecast period.

Vertical Insights

The transportation & logistics segment accounted for the largest revenue share of 21.8% in 2022 and is expected to continue the same trend over the forecast period. The growth is attributed to its properties in creating transparent and immutable records of transactions and events within the transportation and logistics ecosystem. Furthermore, with the help of up-to-date and accurate information related to inventory status, the companies associated with transportation & logistics can improve their efficiency in operations. These properties are expected to drive segment growth during the forecast period.

The healthcare segment is expected to grow at the fastest CAGR of 61.6% over the forecast period. The growth of the healthcare segment is attributed to the ability of the solutions to track and trace pharmaceutical products across the supply chain effectively. This capability ensures the authenticity and origin of drugs, leading to the mitigation of counterfeit drug issues, minimizing the risk of medication errors, and ultimately enhancing patient safety, which is anticipated to boost the healthcare segment's growth.

Organization Size Insights

The small- & medium-sized enterprises (SMEs) segment accounted for the largest revenue share of 60.2% in 2022 and is expected to continue the same trend over the forecast period. The growth of the segment is attributed to the implementation of solutions to help SMEs meet regulatory compliance requirements. Blockchain technology's transparent and auditable nature enables SMEs to maintain accurate records, ensure data privacy, and demonstrate compliance with industry regulations, which is expected to boost segment growth over the forecast period.

The large enterprises segment is expected to grow at a considerable CAGR of 57.8% over the forecast period owing to the growing need for enhanced security, efficiency, transparency, and traceability, among others. Similarly, the blockchain IoT provides a decentralized and transparent ledger that ensures secure storage and sharing of data among authorized participants. This enhances data integrity and empowers large enterprises to make more informed and data-driven decisions. Such properties are expected to drive segment growth over the forecast period.

Application Insights

The asset tracking & management segment is expected to register a significant growth rate of 57% over the forecast period owing to the real-time tracking and traceability of assets throughout the supply chain. Through improved visibility, organizations can streamline their supply chain operations, prevent counterfeiting, lower costs, and ensure compliance with regulations. Such attributes are expected to boost the segment growth over the forecast period.

The smart contracts segment accounted for the largest market share of 30.7% in 2022. The self-execution and automation capabilities of smart contracts in the market are expected to drive segment growth. Smart contracts enable direct transactions between IoT devices, eliminating the need for intermediaries and manual intervention, resulting in faster and more efficient transactions. This simplified process enhances overall operational efficiency and increases transaction speed, which is expected to fuel segment growth.

Regional Insights

North America accounted for the largest revenue share of 34.6% in 2022 and is anticipated to witness considerable growth over the forecast period. A significant factor driving the market growth in this region is the presence of key players, such as IBM Corporation, Microsoft Corporation, Amazon.com, Inc., and Cisco Systems, Inc. Furthermore, the region is at the forefront of adopting emerging technologies, including blockchain and IoT, which are contributing to its growth. Asia Pacific is anticipated to emerge as the fastest-growing regional market with a CAGR of 61.9% from 2023 to 2030.

The governments of countries, such as China, Japan, and India, have been adopting and promoting the use of this technology. For instance, in March 2023, the Society for Electronic Transactions and Security (SETS) and the Unique Identification Authority of India (UIDAI) collaborated to conduct research & development in deep tech, which includes IoT Security, blockchain technology, and quantum security, among others. It is a part of the ‘Make in India’ initiative by the Indian government to augment capacity and improve self-reliance on information security. Such initiatives by governments are expected to drive the demand for technology across the region.

Key Companies & Market Share Insights

The market is classified as highly competitive with the presence of several players. The key players are focusing on strategic alliances, mergers & acquisitions, expansion, and product development to remain competitive in the industry. For instance, in February 2023, China Telecom, one of China's wireless providers with approximately 390 million users, partnered with Conflux Network, a blockchain protocol, to develop blockchain-based SIM cards.

The blockchain-based SIM card is expected to securely store and manage users' private and public keys within the card itself, ensuring that the private key remains within the card and enabling secure digital signatures. Such initiatives by key companies are anticipated to augment the industry growth over the forecast period. Some of the prominent players in the global blockchain IoT market include:

• Intel Corporation

• IBM Corporation

• Microsoft Corporation

• Cisco Systems, Inc.

• The Linux Foundation

• Amazon.com, Inc.

• KrypC Technologies

• IoTex

• ArcTouch LLC

• R3 LLC

• Chronicled

Blockchain IoT Market Report Scope

Global Blockchain IoT Market Report Segmentation

This report forecasts revenue growth and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the blockchain IoT market report based on component, application, organization size, vertical, and region:

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Hardware

  • Software and platform

  • Services

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Data Security

  • Smart Contracts

  • Asset Tracking & Management

  • Others

• Organization Size Outlook (Revenue, USD Million, 2018 - 2030)

  • SMEs

  • Large Enterprises

• Vertical Outlook (Revenue, USD Million, 2018 - 2030)

  • Transportation & Logistics

  • Manufacturing

  • Healthcare

  • Retail

  • Consumer Electronics

  • Smart City

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa (MEA)

    • South Africa

    • UAE