The Blockchain Internet Of Things (BIOT), an initiative aimed at developing open standards for blockchain hardware security, is reportedly expected to become more than a $254 billion market by 2026.
“Accelerated data exchange, enhanced security, and reduced cost” are likely to be the main factors that could contribute to BIOT’s market growth and adoption, according to Aftrek Market Research, a New York-based consulting firm.
The research also argues that BIOT may directly accelerate the ongoing development of blockchain technology and lead to its increased adoption.
Other technological innovations, the study notes, such as the automation of various processes in the automotive, manufacturing, and oil and gas sectors could also drive the “large scale adoption of BIOT.”
Making Business Operations More Efficient
Aftrek’s research also indicates that large-scale retailers are looking to make their accounting and payments systems more efficient by potentially using BIOT.
Agencies and loyalty & rewards programs are expected to adopt BIOT as well, the research explains, in order to make their business operations more secure and cost-effective.
Notably, Aftrek believes that cryptocurrencies will complement BIOT by providing a secure way to make international payments, including micro-payments. Accounting systems are also expected to leverage BIOT, which can “provide retailers with greater transparency through end-to-end data trail”, according to the study.
APAC To Experience Sizable Market Growth
Aftrek further notes that the Asia Pacific (APAC) region, particularly Australia, China, and Japan, will experience a sizable 13.3% compound annual growth rate (CAGR), partly due to BIOT adoption. Significant market growth is also expected in South Asian countries like Singapore, the research notes, due to financial institutions increasingly investing in multiple blockchain projects.
APEC’s low labor costs, which have resulted in the outsourcing of manufacturing and supply chain & logistics operations, might also potentially accelerate BIOT’s market growth. The companies expected to contribute most to the growth and adoption of BIOT include IBM, Samsung, Oracle, Microsoft corporation, and Amazon, according to Aftrek’s study.
In order to conduct its BIOT market research, Aftrek said that it categorized the current markets into applications such as banking, financial services, and insurance (BFSI), healthcare, supply transportation, manufacturing, IT/telecommunications, and retail.
The research firm also divided its research scope based on geographical locations such as Asia Pacific, Latin America, Europe, and North America.