Blockchain is a record keeping technology. It is widely used in cryptocurrency to store information and in security labels, to protect packaged products from counterfeiting. Security labels enhance tractability of the product in the supply chain and ensure authenticity of the product. In the recent past, owing to digitalization in many areas, the number of interconnected devices through IoT have increased significantly. Due to this, there is a need for efficient security solutions for IoT systems.
Increasing demand for block chain-based security solutions in transportation and digital payment areas is expected to propel growth of the market during the forecast period
Various software companies are engaged in developing block chain-based security solutions for transpiration and logistic industry. For instance, in August 2018, International Business Machines Corporation (IBM) and Maersk launched Tradelens, a block-based security solution for shipping containers. Tradelens is jointly developed by IBM and Maersk to obtain more efficient and secure global trade. In March 2020, Standard Chartered Bank adopted the Translens platform to validate the authenticity of global shipments. Many banks play a crucial role in import and export of goods on a daily basis. Various financial institutions, which play a major role in global trade transactions, are expected to adopt blockchain-based security solutions in the near future.
In November 2018, Microsoft and Interswitch group launched blockchain-based supply chain financing platform, Interswitch Blockchain Service, in Nigeria. Interswitch group is a Nigeria-based digital payments and commerce company. Interswitch blockchain service is backed up by Microsoft’s Azure blockchain technology. This platform will bring together financial institutions, corporate individuals, and entrepreneurs on a single and secure platform.
Regional Analysis of Block Chain-based Security Solutions Market
On the basis of region, the global block chain-based security solutions for IoT Systems market is segmented into North America, Europe, Latin America, Asia Pacific, and Middle East and Africa. In 2019, North America held dominant position in the block chain-based security solutions for IoT Systems market with 34.7% market share and is expected to retain its position over the forecast period. This is owing to adoption of strategies such as product development by key vendors in this region. For instance, in October 2018, TCS partnered with Intel to enhance the privacy and security of its Quartz blockchain solution. Intel offered its SGX Technology to upgrade the Quartz blockchain solution ecosystem. Moreover, in April 2018, Amazon Web Services launched blockchain templates. These templates offer fast and secure way to create and deploy blockchain network using open source frameworks such as Ethereum and Hyperledger Fabric.
Block Chain-based Security Solutions For IoT Systems Market - Impact of Coronavirus (Covid-19) Pandemic:
COVID-19 pandemic has hampered growth of several economies of various countries across the globe. According to the International Monetary Fund Analysis, the global economy is expected to shrink down by 3% percent in the year 2020 compared to year 2019. Along with the GDP, the dispense power of individuals across the globe is also expected to decrease during the year 2020. Due to the reduced dispense power, the demand for IoT devices is expected to reduce in the year 2020-21. The COVID-19 pandemic will not have any long term effect on block chain-based security solutions for IoT market growth.
High cost of block chain-based security solutions are expected to hamper the market growth during the forecast period
Block chain-based security solutions are costly and it increases complexity of the existing operating systems of companies. Moreover, block chain-based security solutions should be compatible with existing system of the organization. For several companies such as SMEs, the high initial cost of block chain-based security solutions is a major concern.
Key players operating in the block chain-based security solutions for IoT Systems market include IBM Corporation, Microsoft Corporation, Intel Corporation, Amazon, Cisco Systems, Ethereum Foundation, The Linux Foundation, and KrypC.
Global Block Chain-based Security Solutions for IoT Systems Market Taxonomy