In the manufacturing market the blockchain is expected to be worth USD 30.0 million by 2020 and a staggering USD 566.2 million by 2025, growing at a compound annual growth rate (CAGR) of 80.0% from 2020 and 2025.
Many key factors that are driving the growth of the blockchain in manufacturing market include blockchain-as-a-service (BaaS) solutions for enterprises, simplifying business processes by affording transparency and immutability, and significant increase in venture capital investments and initial coin offerings (ICO). But also the increasing demand for real-time data analyses, enhanced visibility, and proactive maintenance, increased emphasis on energy efficiency and cost of production, convergence of operational technology (OT) and information technology (IT), take part in the expected growth of the blockchain in the manufacturing market.
Strategies such as product launches and developments, agreements, collaborations, joint ventures, and partnerships adopted by market players are fueling the growth of the blockchain in manufacturing market. However, on the other hand, the uncertain regulatory landscape and absence of common set of standards are restraining the growth.
Logistics and supply chain management applications are expected to account for the largest market share during the forecast period. With blockchain, intermediaries can be taken out of the equation to streamline the flow of supply chain operations; it also allows all transaction data across networks to be synchronized, enabling participants validate each other's work. In 2017, IBM and Maersk tested the application of blockchain in logistics. In a proof-of-concept, the 2 companies demonstrated how blockchain can be used to track on-transit containers, and how supply chain stakeholders can benefit from accessing relevant, actionable information.
China, India, Australia, and Singapore are witnessing a significant growth in the number of startups focusing on blockchain. Here, organizations have started joining various conferences to brainstorm and understand the value of blockchain. For instance, the APAC Blockchain Conference was formed by 420 participants from diverse industry verticals and Australian Digital Commerce Association (ADCA) to explore blockchain in depth.
China is the biggest manufacturing hub in the world and is actively working on its smart manufacturing strategy to develop its manufacturing sector and reform and strengthen the Chinese economy over the next 10 years. The government is working toward implementing the Made in China 2025 strategy, to seek innovation-driven developments, apply smart technologies, strengthen foundations, pursue green development, and redouble its efforts to transform China's manufacturing model from quantity centric to being quality centric. Manufacturing accounts for about a fifth of Singapore's GDP, and the Government of Singapore is taking aggressive steps toward adopting IoT in manufacturing.
Companies in Singapore are working toward achieving Industry 4.0, integrating autonomous robots, big data and analytics, blockchain, augmented reality, additive manufacturing, IIoT, horizontal and vertical systems integration, simulation, cloud, and cybersecurity. The Government of Singapore is working toward IT infrastructure development to provide a fast, secure, and reliable network to support hundreds of billions of industrial devices. The Indian blockchain market has taken the technology's adoption to the next level, where the integration of pilots and production-ready applications can be seen. With an increasing interest of the government, technology giants, and domestic startups on multiple platforms, the country is expected to witness an exponential adoption of the blockchain technology.