Report Linker, the industry insights company reported in early October 2018 that the blockchain will have a major role in the manufacturing sector from 2020 to 2025. As per the Report Linker reports, the worth of blockchain in the manufacturing market is expected to be $30.00 million by 2020 and $566.20 million by 2025. The participation of blockchain technology in the manufacturing industry was distinguished into asset tracking and management, business process optimization, real-time workforce tracking, logistics and supply chain management, quality control, and counterfeit management during the study. It was also categorized by application, territory, and end use.
Logistics and Supply Chain Management Can Have the Biggest Market Share
The key properties of blockchain technology that have made its place in the manufacturing industry include transparency and immutability. The reports say that the worth of blockchain will increase at a “compound annual growth rate (CAGR) of 80.00 percent from 2020 to 2025”. During this period the research shows that the logistics and supply chain management can account for the biggest market share. This is mainly because implementation of blockchain technology will eliminate the intermediaries and the transaction data from the networks to be synchronized. The participants will thus be able to validate each other’s work.
Previously, IBM and Maersk had tested the effect of blockchain in logistics in 2017. The experiment had shown that in the proof-of-concept blockchain technology can be used to track on-transit containers. The project had also revealed how the supply chain stakeholders will gain from accessing relevant, actionable information.
“Blockchain in manufacturing market in the APAC area is forecast to grow at the highest compound annual growth rate (CAGR) from 2020 to 2025.”
An increasing number of blockchain focused startups can be observed in China, India, Singapore and Australia at the moment. Various institutions are participating in conferences that are focused on blockchain technology and its applications. The APAC Blockchain Conference had witnessed 420 participants from different industry verticals and Australian Digital Commerce Association.
At present, China is diligently working on expanding its manufacturing market to boost the Chinese economy within the next decade. The “Made in China 2025” strategy is gaining prominence in the country where application of smart technologies along with innovative ideas are being focused on. Green development and transformation of China’s manufacturing model to being quality centric are also of high importance.
As for Singapore, the manufacturing industry accounts for fifth of its GDP. The government of Singapore is actively working to implement IoT in manufacturing and the firms are also focused on reaching Sector 4.0. Integration of autonomous robots, blockchain, cloud and cybersecurity are the areas that are being given high priority in Singapore. In India too, a rise in the integration of blockchain technology in certain areas is being observed.
The research of Report Linker says that currently IBM Corporation, Amazon.com, Microsoft Corporation, and Intel Corporation are some of the prominent players integrating blockchain in the manufacturing market. It is no wonder that the blockchain will see such an exponential growth in the manufacturing industry considering the demand for faster delivery services.