Blockchain devices have seen “extraordinary growth” in 2023-2024, stimulated by government use, innovation and “growing acceptability” in the industry, a report by SNS Insider claims.
The report also stated that the blockchain devices market size is expected to climb to $16.81 billion by 2032 from its present level of $900 million. The projected spike represents a compound annual growth rate (CAGR) of 38.44% over an eight-year period.
SNS Insider’s prediction cites rising state-level adoption of blockchain solutions as a key driver for the ecosystem’s growth, with governments exploring digital IDs and novel ways to stifle fraud.
Another factor behind the soaring adoption levels for blockchain devices is their utility for financial applications. Financial institutions pitch their tents with blockchain-based solutions, investing in Web3 infrastructure to reduce settlement times and improve the state of their cross-border operations.
On the retail side, individuals are migrating to hardware wallets to protect their assets. Other industries are embracing blockchain devices to improve sector productivity, with supply chain, health, and manufacturing leading the vanguard.
The wired blockchain devices market holds most of the share at nearly 80%, but by 2032, the wireless segment is expected to rise in demand. Experts say that widespread use of 5G and Wi-Fi 6 will be instrumental in the wireless segment’s march to clinch a CAGR of 38%.
Corporate applications of blockchain devices will maintain their lead over the personal segment, driven by multinational corporations using the devices to track their supply chains.
Regarding regional analysis, North America holds a clear lead over other regions, but its 39% dominance is expected to be threatened by the growing figures in the Asia Pacific.
Key players in the ecosystem include Ledger, Trezor, HTC, Bitmain, and Samsung (NASDAQ: SSNLF), but it remains unclear if new disruptors will rise to the top of the rankings by the end of the decade.
While the report makes optimistic predictions for blockchain, the road to clinch a $16 billion valuation is fraught with a few challenges. For starters, blockchain devices are not cheap, and the report notes that high costs are expected to slow the adoption pace for SMEs and enterprises in developing regions.
Support from national governments will be key to circumnavigating the challenge. In India, the National Blockchain Strategy confirms ambitious plans to support the ecosystem while the European Union (EU) is progressing with its European Blockchain Services Infrastructure (EBSI).
Fujitsu joins new logistic service with an eye on sustainability
In other news, tech giant Fujitsu (NASDAQ: FJTSY) has announced plans to join ranks with Japanese-based parcel delivery company Yamato to float a new digital logistics company focused on sustainable operations.
Dubbed Sustainable Shared Transport, the platform is expected to allow logistic companies to collaborate to make efficient deliveries. Sustainable Shared Transport will see long-distance shipments shared by logistic firms and shippers, which experts say is a solution to a raft of issues affecting Japan’s local ecosystem.
Half-empty trucks traversing Japanese highways are a fairly common occurrence, costing shippers and logistic firms a fortune stemming from the systemic inefficiencies.
Fujitsu and Yamato’s new platform will feature a new trunk route system to address the issue. The system will contain seven hubs in Miyagi, Fukushima, Atsugi, Hamamatsu, Kyoto, Hiroshima, and Fukuoka.
Instead of covering long distances, a shipment can be “relayed” between operators across the seven hubs, saving millions of yen for the logistics ecosystem. Under Sustainable Shared Transport, local operators will play a significant role, providing them with increased revenue while improving the overall efficiency of the ecosystem.
The platform provides a novel solution as the country teeters toward new legislation at the end of Q1 requiring operators to improve optimization in line with climate change rules.
At the moment, Yamato holds most of the Japanese parcel delivery market, with pundits noting that onboarding operators for the new service may be a breeze ahead of its February 1 launch date.
Leveraging blockchain expertise
Fujitsu has since been utilizing blockchain technology, rolling out offerings and striking partnerships in Japan and the broader Asia Pacific (APAC). Fujitsu is expected to bring its blockchain experience to the new logistic project, providing transparent and immutable operations.
The IT giant’s previous experience with blockchain-based environmental tracking may play a key role when the new optimization legislation for logistic operators comes into force.
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