Blockchain IoT Market Size

Blockchain IoT Market Analysis

The Blockchain IoT Market size is estimated at USD 0.82 billion in 2024, and is expected to reach USD 4.93 billion by 2029, growing at a CAGR of 43.31% during the forecast period (2024-2029).

The Internet of Things (IoT) is an advanced technology that connects all devices over the Internet, and blockchain is a kind of distributed financial technology. The main advantages of using blockchain for IoT include lower chances of collusion and manipulation and lower transaction settlement and costs.

• With the rapid development of communication technologies, IoT ( Internet of Things) is experiencing exponential growth in research and industry. It is getting out of its infancy to a maturity phase with the volume of data generated, transmitted, and processed.
• The traditional IoT systems are powered by centralized topology, where data is transmitted from physical devices to the cloud, where the data is processed using analytics. Output is received back to the IoT device. Still, the increase in the frequency of network devices limits the scalability of the IoT platforms and risks them with vulnerabilities that would eventually compromise users' network security and privacy.
• The blockchain powered by decentralized architecture and cryptographic encryptions leverages the IoT platform by ensuring privacy and security in a peer-to-peer network. However, it requires high computational power, resulting in higher bandwidth overhead and delay.
• The Internet of Things ecosystem is quite diversified. Creating IoT devices that are compatible with blockchain technology involves many challenges. Scalability, which involves processing a huge volume of data generated by a wide network of sensors, is one of the primary challenges IoT faces. The processing power and time necessary to encrypt all IoT devices in a blockchain-based ecosystem are not as anticipated. Another key challenge in blockchain systems that keep the ledger on edge nodes is storage. IoT smart devices at the edge are currently incapable of storing large amounts of data or processing large amounts of computational power.
• The COVID-19 pandemic has impacted many sectors, including individuals and corporations. The internet ecosystem has played a critical role worldwide. The reliance on internet enterprises has grown dramatically due to the COVID-19 epidemic. BFSI, healthcare and life sciences, manufacturing, automotive, retail, transportation, and logistics are embracing the Internet to offer customers the required services. Suppliers have noticed a decrease in demand for a blockchain IoT solution. The global shutdown impacts the demand and availability of specific hardware components necessary for blockchain IoT. In the future, the healthcare and government verticals are expected to see moderate adoption of IoT sensors and blockchain to protect hospitals, government buildings, and populations during epidemics.
• Post-COVID-19, the government has also been investigating the potential for implementing a number of smart city technologies to increase urban resilience in times of crisis, which may propel the market's growth.