The Internet of Things or IoT, industry is unquestionably playing a vital role in the commercialization of innovations now and for years to come. And the interconnectivity between IoT and other emerging technologies will unlock a vast amount of value for consumers and enterprise businesses alike. But how big is this market today and at what rate is it growing?
Bain & Company conducted a survey that predicts the IoT market to grow from $235 billion in 2017 to $520 billion in 2021, while the IDC forecasts that worldwide IoT spending will reach $1.2 trillion in 2022. Needless to say, most industry experts are expecting to see double-digit year-over-year growth in the IoT industry over the next decade.
A recent KPMG survey predicts that IoT technology will drive the greatest business transformation of any technology over the next three years. But what will be the driving force that will maximize IoT’s potential for years to come thereafter? Many are placing their bets on the blockchain.
Blockchain and IoT: A combination based on Trust and Security
Let us define the Internet of Things as Wikipedia does, “IoT is the extension of Internet connectivity into physical devices and everyday objects.” Many experts see consumer applications of IoT as the catalyst for industry growth. And with the proliferation of smart appliances, smart homes, smart cars, and health wearables, we can expect to continue seeing the trend of living an ever-connected life for generations to come. A July report by Microsoft predicts that 94% of major businesses will use IoT by 2022. However, of the surveyed companies in this report, 97% are concerned about IoT security. This is where blockchain can step in and alleviate these concerns.
Blockchain carries many advantages in the context of IoT devices and networks.