The decentralized physical infrastructure network (DePIN) market could grow exponentially to $3.5 trillion by 2028 as blockchain and artificial intelligence (AI) technologies increasingly converge, according to a new report from the World Economic Forum (WEF).
The report highlights how DePIN, a relatively nascent sector valued between $30 billion and $50 billion, blends blockchain technology with user-owned physical infrastructure to build decentralised, community-powered networks. These networks incentivise participants with cryptocurrency in exchange for contributing resources like storage, connectivity, or computing power.
DePIN: A New Model for Infrastructure and AI
DePIN networks operate on a fundamentally different principle from traditional centralised systems. By allowing individuals and businesses to contribute to infrastructure needs, whether through hardware, bandwidth, or data, DePIN enables the creation of decentralised networks that are more democratic and resilient.
The most significant catalyst for this market surge, the WEF report suggests, is the emergence of decentralised physical AI (DePAI). DePAI represents a shift in the way AI interacts with both physical infrastructure and external data environments. Unlike centralised AI models that rely on proprietary data sets and closed systems, DePAI allows users to feed machine learning (ML) systems through real-world activities.
“This model helps avoid the data bottlenecks and biases often found in centralised datasets,” the report notes. It further emphasises that this decentralised approach not only democratizes access to AI development but also ensures AI systems remain more relevant, diverse, and context-aware.
Massive Growth Ahead, Say Experts
The WEF report estimates that DePIN currently hosts over 1,500 active projects worldwide. With increasing demand for decentralised digital services and infrastructure, the market is expected to expand dramatically in the next three years.
Carlos Lei Santos, co-founder and CEO of decentralised wireless network Uplink, echoed this optimism, stating, “The next $1 trillion company is likely to emerge from the DePIN sector, particularly in the realm of decentralised wireless solutions.”
As the demand for seamless digital connectivity and data processing grows, decentralised wireless hardware is expected to become one of the key components of this industry. Such systems could eventually rival, or even replace, some existing centralised networks and data providers.
Decentralisation Reshaping the Future of Computing
The WEF believes that wider DePIN adoption may ultimately transform the global computing landscape by fostering a more distributed and robust digital infrastructure. This evolution towards “omni computing” could mark a move away from centralised cloud services, creating a more open and resilient ecosystem.
DePIN platforms like Bittensor and Threefold are already demonstrating what the future might look like. Bittensor enables the decentralised development of AI models, opening up AI training to a global network of contributors. Meanwhile, Threefold offers a sovereign digital identity solution tailored for Web3, reinforcing the decentralisation ethos.
These platforms also incorporate blockchain-based incentive systems that reward contributors in real time. Such systems not only ensure that development is collaborative and community-driven but also create a sustainable economic model for long-term growth.
Multiple Forecasts Point to $3.5 Trillion Potential
The bullish outlook from the WEF aligns with earlier predictions from blockchain and crypto research firm Messari. In its January 2023 report, Messari projected the DePIN market could reach $3.5 trillion by 2028, an increase of over $1.3 trillion from its current estimated addressable market of $2.2 trillion.
This projected expansion underscores the increasing role decentralisation is expected to play across various sectors, from telecom and energy to data storage and identity management.
“DePIN’s role in enabling decentralised applications and distributed AI systems cannot be overstated,” the WEF report concludes. “Its growth is likely to redefine how we perceive and interact with physical infrastructure in a digital-first world.”
A Pivotal Moment for DePIN
With both technological advancements and societal shifts favouring decentralisation, the next few years are likely to be crucial for DePIN’s evolution. As more individuals and businesses adopt DePIN principles, traditional infrastructure models may increasingly face disruption.
The convergence of blockchain and AI is no longer a theoretical possibility, it is actively reshaping how infrastructure is built, accessed, and monetised. If forecasts from the WEF and Messari hold true, DePIN may soon become one of the most significant tech revolutions of this decade.
