Industry insights company Report Linker has released data indicating that blockchain is going to play a very significant role in the manufacturing sector from 2020 to 2025. For the report, the blockchain in manufacturing industry was broken down into asset tracking, asset management, business process optimization, logistics and supply chain management, real-time workforce tracking, predictive maintenance, quality control and compliance, and counterfeit management. It was also split by application, end use, and territory.
Key findings from Report Linker
The blockchain/manufacturing industry is expected to reach around USD 30 Million by 2020 and grow to USD 566 Million by 2025, a compound annual growth rate (CAGR) of 80%. The rise of Blockchain as a Service (BaaS) companies as well as the increase in venture capital are cited as the main reasons for the explosive growth expected in the sector.
North America is expected to see a large increase in blockchain and manufacturing until the year 2020. But after this, the APAC region is set to see the largest increase. China, India, Australia, and Singapore are experiencing an enormous amount of growth in the blockchain startup sector. China is the biggest manufacturing hub in the world, and the APAC Blockchain Conference was formed by over 420 participants. Manufacturing also accounts for 20% of Singapore’s GDP and the government is working towards –
“Achieving Sector 4.0, integrating autonomous robots, big data and analytics, blockchain, augmented reality, additive manufacturing, IIoT, horizontal and vertical systems integration, simulation, cloud, and cybersecurity.”
According to Report Linker, a lack of certainty in the regulatory arena is the biggest barrier to growth in the blockchain/manufacturing industry. This regulatory uncertainty is not specific to manufacturing but is an issue surrounding the whole of the cryptocurrency industry. The same issues will arise about Artifical Intelligence, Virtual Reality, and Augmented Reality when these technologies become significantly developed.
Logistics and supply chain management
It is no surprise that logistics and supply chain management top the list to account for most of the market share. This is primarily because distributed ledgers are perfectly suited to the supply chain industry. Real-time tracking of goods can be recorded on the blockchain. In the modern era, people want their products delivered as soon as possible, and they want to know where it is and how long delivery will take. To facilitate this trend, it is necessary to integrate DLT into the logistics and supply chain management industry. The Report Linker data cited the 2017 supply chain logistics and DLT trial conducted by IBM and Maersk, which was a huge success.
DLT should heavily streamline all the regulatory requirements associated with the movement of goods. BaaS company VeChain Thor is already in operation, tracking luxury goods in the retail sector as well as vaccines for the Chinese government.
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.