The growing adoption of blockchain technology for payments in the retail sector is anticipated to drive the blockchain IoT market over the forecast timespan. Several retailers and suppliers are using blockchain technology to streamline their transactions and cut additional overheads. Furthermore, the adoption of both blockchain and IoT helps retailers to track products and prevent product tampering. Blockchain offers security with enhanced encryption standards that eliminate the challenges faced by the IoT technology. Thus, the rising demand for product tracking solutions is also fueling the blockchain IoT market. Major benefits of blockchain technology are less paperwork leading to fewer delays in transport, reduced transportation cost, few manual errors, and quick identification of products.
The growing blockchain usage in the construction sector is fueling the blockchain IoT market globally. To avoid disputes arising over certain stipulations, blockchain technology is used to create smart contracts. These contracts have instructions embedded in them. If these instructions are not fulfilled, the payment is not processed, thus eliminating payment disputes. Cross-chain interoperability is one of the few challenges that need to be addressed by the market players, to reap the benefits of interconnected devices. Organizations are focusing on developing solutions that can enhance communication between multiple devices connected over a decentralized network.
By component, the blockchain IoT market is classified into hardware, software, and services. The software segment is anticipated to hold a substantial market share, owing to the rising investments made by various market players. The application segment of the blockchain IoT market is fragmented into smart contracts, data security, asset tracking and management, data sharing, and others. Data security is expected to grow considerably over the estimated timeline, owing to the rising concerns for data theft due to a growing number of cyber-attacks. By end-use industry, the blockchain IoT market includes retail, energy and utilities, consumer electronics, healthcare, construction, transportation, manufacturing, and others.
The North American region is expected to grow notably over the forecast timespan. The U.S. is a major contributor of this regional market, due to the presence of key players like Intel, IBM, Microsoft, etc. and the increasing adoption of blockchain and IoT by the country’s retail sector. Retailers like Walmart are investing in blockchain and IoT to track food products and improve food safety, which is further supporting the North American blockchain IoT market.
The Asia Pacific region is anticipated to witness notable growth in the global blockchain IoT market over the upcoming years, owing to the increasing IoT adoption in China, Japan, and South Korea. China is projected to generate a huge demand for blockchain solutions, particularly by its manufacturing sector. Furthermore, rising foreign direct investments (FDI) in the Indian manufacturing sector are also expected to drive this regional market. From 2000 to 2018, India’s manufacturing sector had FDI worth USD 46.62 billion. These investments are anticipated to rise in the years ahead, owing to the “Make in India” initiative, which focuses on encouraging organizations to manufacture their products in India.