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article imageBlockchain for manufacturing to hit $566 million by 2025

By Tim Sandle     Oct 18, 2018 in Business
A new review indicates that blockchain for manufacturing is likely to show considerable growth over the next seven years, rising to $566.2 million. The biggest regions of growth will be in the U.S. and China.
The report comes from analysts Markets and Markets and it is titled “Blockchain in Manufacturing Market - Global Forecast to 2025". The review predicts how the blockchain market will be valued at $30.0 million by 2020, and then expand to $566.2 million by 2025. This represents a compound annual growth rate of 80%.
The report divided up the manufacturing market by application, such as business process optimization, logistics and supply chain management, and counterfeit management and by end use, including automotive, energy and power, industrial, and pharmaceutical sectors. Geographical regions are also presented.
The primary drivers for an expansion in blockchain include Blockchain-as-a-Service (BaaS) solutions for enterprises. BaaS is a service that enables customers to leverage cloud-based solutions to build, host and use their own blockchain apps. The service also extends to smart contracts.
Another driver is the aim of many firms to simplify business processes and to provide the benefits of blockchain like transparency and immutability. There is an associated requirement, according to a review by Smart2Zero, for providing real-time data analyses and greater visibility.
Some organizations are also keen to seek energy efficiency and to lower the cost of production. One way that costs can be lowered, as well as greater insights gained, is through the use of artificial intelligence and the Internet of Things, both of which are compatible with blockchain.
The area expected to see the greatest uptake of blockchain technology is with logistics and supply chain management applications. The industrial sector most likely to pioneer growth is the energy and power sector. Many of these companies, the report states, will be seeking a reduction in energy demand.
The regions most likely to see growth are the U.S. and China, followed by Canada. Here key industry players, such as IBM Corporation and Microsoft Corporation, have made the greatest inroads.
In this context, Mark Russinovich, chief technology officer of Azure at Microsoft stated: “Blockchain is a transformational technology with the ability to significantly reduce the friction of doing business.”
More about blockchain technology, blockchain, cryptocurrency, Manufacturing
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