The blockchain IoT market is projected to grow from USD 113.1 million in 2019 to USD 3021 million by 2024; it is expected to grow at a CAGR of 92.92 percent over the next 5 years. Major factors driving the market growth are increasing adoption of IoT, growing need for IoT security, simplifying business processes and affording transparency and immutability, and increasing focus on operational efficiency. Further, underlying opportunities for the blockchain IoT market include higher adoption of blockchain solutions for smart contracts and digital identity and rising government initiatives.
The smart city segment is expected to witness the highest CAGR during 2019–2024. Smart city leaders are embracing blockchain as a cross-cutting platform that connects different services to track data, eliminate security breaches, provide seamless transactions, and offer reassuring transparency for public services. Smart cities integrate IoT with almost every aspect of life; with recent developments, smart cities will become a reality in the near future. Blockchain technology’s core component is a technology protocol that enables data to be exchanged amongst multiple parties within a network. It does so without the need for intermediaries as network participants interact with encrypted identities (anonymously), and directly with each other using peer-to-peer communication. Each transaction is then added to an immutable transaction chain and distributed to all network nodes. Blockchain hardware takes data from a source at the edge of IoT, and brings it to the cloud from where the data can drive business value and empower new revenue models. North America is among major contributors to the blockchain IoT market growth, and the US accounted for the largest share of the market in North America in 2018.