By In a report by ReportLinker, a research company in France that simplifies decision makers obtain industry data, it was said that blockchain technologies are expected to be worth around $566 million by 2025 in the U.S. manufacturing market.
Authors of the report divided blockchain usage by application, end use, and territory. Blockchain was then further divided in manufacturing market based on end use, into automotive, aerospace & defense, pharmaceuticals, energy and power, food and beverages, textiles and clothing and industrial, among other sectors.
Blockchain technologies are expected to grow at a compound annual rate of 80 percent and will eradicate mediators in logistics and supply chains by streamlining business processes and guaranteeing transparency and immutability. Transaction data across networks will be harmonized, thereby enabling individuals to validate the work of others. Blockchain in the manufacturing market is expected to be valued at 30 million by 2020, and $566 million by 2025.
Factors driving this exponential growth in the blockchain manufacturing market include the advancement of Baas (blockchain-as-a-service) solutions for businesses, noteworthy increases in venture capital investment and ICO (Initial Coin Offerings), increasing demand for real-time data analyses, increased emphasis on effectiveness and cost of manufacture, merging of operational technology (OT) hands-on maintenance and heightened visibility. Strategies such as arrangements, joint ventures, product launches and developments, and partnerships adopted by market players are firing the development of blockchain in the manufacturing market. Factors hindering the growth, however, are an uncertain regulatory landscape and lack of the common set of standards.
The MAPI foundation carries our research and provides recommendations for policies regarding the conditions of the American manufacturing sector. The foundation reported in March that manufacturing productivity of January 2018 decreased by 4.7 percent from December 2017. Regardless of the financial crisis of 2008, the MAPI forecast that the U.S. manufacturing sector will recover all lost output by April 2019, with an average growth rate of 2.8 percent from 2018 to 2021.
Cointelegraph reported in August, that Deloitte’s 2018 blockchain survey showed technologies to be gaining substantial pull in at the executive level of initiatives across a varied range of industries. 74 percent of participants in the survey responded that the use of blockchain technology is viewed as having a ‘compelling business case’ by their executive team. A further 34 percent stated that blockchain technologies are already being developed within their companies. China, India, Singapore, and Australia are experiencing an increasing number of startups focusing on blockchain.
Do you see the Blockchain manufacturing industry growing to $556 million by 2025? Let us know in the comment section below
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