Blockchain in the global manufacturing market is expected to be worth $30 million (£23 million) by 2020 and $566.2 million (£436.5 million) by 2025, growing at a compound annual growth rate (CAGR) of 80% over the five year period.
Research by MarketsandMarkets says key factors driving growth include blockchain-as-a-service (BaaS) solutions for enterprises, simplifying business processes, and increased emphasis on energy efficiency and cost of production.
In addition, there has been a significant rise in venture capital (VC) investments and initial coin offerings (ICO) in the market, along with an increase in global blockchain-related patent filings.
“Strategies such as product launches and developments, agreements, collaborations, joint ventures, and partnerships adopted by market players are fuelling the growth of the blockchain in [the] manufacturing market,” the report states.
It adds that the uncertain regulatory landscape and absence of a common set of standards are currently restraining growth.
Logistics and supply chain management applications are expected to account for the largest market share between 2020 and 2025. Blockchain enables intermediaries to be taken out of the equation, thereby streamlining the flow of supply chain operations. It also allows transaction data across networks to be synchronised, enabling participants validate each other’s work.
In 2017, IBM and Maersk demonstrated how blockchain can be used to track on-transit containers and how supply chain stakeholders can benefit from accessing relevant, actionable information.
APAC is where it’s at
The APAC region is expected to see the highest CAGR between 2020 and 2025, with China, India, Australia and Singapore currently witnessing significant growth in the number of startups focusing on blockchain.
China is the biggest manufacturing hub in the world and is actively working on a strategy to develop its manufacturing sector and strengthen the Chinese economy over the next 10 years. Singapore, meanwhile, is taking aggressive steps toward adopting IoT in manufacturing, with companies working toward achieving Industry 4.0, integrating autonomous robots, Big Data and analytics, blockchain and augmented reality.