Two recently released reports are shedding light on the impacts that the blockchain could have on the manufacturing and supply chain markets. The market in blockchain-based technologies for the global supply chain market is expected to reach USD $424.24 million by 2023, according to one report, by IndustryARCcurrent. Exploring blockchain’s impact and potential to accelerate Industry 4.0 and the Industrial Internet of Things (IIoT) is the focus of the other.
The whitepaper titled, “How Blockchain is Impacting Industrial Manufacturing and Supply Chain Logistics,” by market-foresight advisory firm ABI Research, highlights findings that blockchain tools can help ease the transition to Industry 4.0. Smart contracts and decentralized autonomous organizations could help manufacturing and supply chain logistics, according to the paper’s author, Michela Menting.
“The use of decentralized ledger technologies such as blockchain can provide transparency on product movement, automate numerous logistical tasks, optimize workflows and reduce friction throughout the value chain,” Menting said.
The whitepaper provides background and details areas where blockchain technologies can excel in a more automated manufacturing arena, Industry 4.0., highlighting industrial drivers and barriers to adoption.
Meanwhile, IndustryARC’s market research report finds that the use of blockchain in the supply chain market is expected to reach a value of USD 424.24 million by 2023 with a CAGR of 48.37 percent during the forecast period.
Many companies within the market have been using blockchain technology for supply chain applications, the report states. North America is expected to dominate the market in this area with a revenue of USD 131.65 million by 2023, according to the report. In Asia Pacific, the market is predicted to have a CAGR of 56.1 percent within the next five years.
The researchers point to drivers including the technology’s ability to maintain transparency of databases, payments, contract management, procurement and more. This together with smart contracts are singled out as the driving forces for contract management, providing economic efficiencies.