New use cases of blockchain technology are being explored in various industries, which is helping in the steady adoption of distributed ledgers around the world. Apart from health care and finance, there is another core economic sector that could be benefited with the advent of blockchain technology. The manufacturing industry will be consistently improving its technological infrastructure, helping blockchain technology grow to a $550+ million market by 2025, per a new report from Research and Markets.
Why Will the Blockchain Market Grow in Manufacturing?
In the report titled “Blockchain in Manufacturing Market by Application (Business Process Optimization, Logistics and Supply Chain Management, Counterfeit Management), End-Use (Automotive, Energy & Power, Industrial, Pharmaceuticals), and Region – Global Forecast to 2025,” Research and Markets claims that the blockchain market in manufacturing will be worth $30 million by 2020. The report also expects things to move rapidly in the space and show exponential growth by 2025, becoming a $566.2-million market. In these five years, the market will grow at an impressive compound annual growth rate (CAGR) of 80 percent.
Some of the major drivers of growth will be a combination of information technology and operational technology. It would be further fueled by a rise in a number of global blockchain patents and an uptick in venture capital funding, which would help in the development of such solutions. Blockchains will also be supported by a robust growth in emerging technologies like artificial intelligence (AI) and Internet of Things (IoT).
Which Sectors Will Benefit the Most?
Supply chain management and logistics will benefit the most from the use of distributed ledger technology. They will account for the largest market share and the highest CAGR till 2025. The report explains the advantages of blockchain in these sectors as follows:
“Blockchain can support supply chain management by offering users reliable data management and visualization capabilities.”
The report further states:
“Technology-enabled supply chain can provide an intelligent, interconnected network that binds together multiple tiers of suppliers, manufacturers, service providers, distributors, and customers distributed across the globe; technologies like blockchain, AI, and IoT are helping traditional methods of supply chain management, product tracking, and inventory management evolve to handle present day complexities.”
Another major impact of blockchains will be the energy and power and industrial sectors. AI and IoT, coupled with robust blockchain systems, will be helpful in managing temperature, air quality, and material movement in these industries.
Blockchain in Manufacturing Market Can Grow to $550 Million by 2025 was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.