In just seven years, the market for blockchain in manufacturing could grow to over half a billion dollars, according to French technology research company ReportLinker.
A compound annual growth rate of 80% is foreseen from 2020, when the market is anticipated to be worth $30 million, to 2025, when it increases to $566.2 million.
Among the factors that would drive the popularity of blockchain in the manufacturing market are: increased use of blockchain-as-a-service solutions for companies; its capacity to simplify business processes and provide transparent and immutable records; growth in venture capital investments and initial coin offerings (ICOs); a greater emphasis on energy efficiency and cost of production; and more blockchain-related patent filings.
However, the research company warned that uncertainty of regulation and the lack of universal standards were limiting the sector’s growth.
The study pointed to China, India, Australia and Singapore as countries were the number of startups using blockchain has been increasing significantly. On China, ReportLinker said, “the government is working toward implementing the ‘Made in China 2025’ strategy, to seek innovation-driven developments, apply smart technologies, strengthen foundations, pursue green development, and redouble its efforts to transform China’s manufacturing model from quantity centric to being quality centric.”
On India, the report said, “With a rising interest of the government, technology giants, and domestic startups on multiple platforms, the area is anticipated to witness an exponential adoption of the blockchain technology.”
The company noted how in Australia, “The APAC Blockchain Conference was formed by 420 participants from diverse industry verticals and Australian Digital Commerce Association to explore blockchain in depth.” And for Singapore, where manufacturing accounts for about one-fifth of GDP, firms “are working toward achieving Sector 4.0, integrating autonomous robots, big data and analytics, blockchain, augmented reality, additive manufacturing, IIoT [Industrial Internet of Things], horizontal and vertical systems integration, simulation, cloud, and cybersecurity.”
The report also explored the various uses of blockchain, such as for the automotive industry, where the technology is seen as a factor in “speeding self-driving car development,” as well as the energy, pharmaceutical, food and beverage, aerospace and defense, and industrial sectors.
New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.