04 Oct 2018 Josphat Kariuki
Blockchain to be Worth over $500 Million in the Manufacturing Market by 2025
While preparing the report, the researchers split the blockchain technology according to application, territory, and end-use. The researchers then looked at the technology in the manufacturing industry according to end-use in different sectors such as food, textile& clothing, aerospace & defense, industrial, energy, and power, among others.
According to the study, blockchain technology is expected to amount to over $30 million by 2020 and significantly grow at a rate of 80% annually, bringing its total value to over $560 million by 2025. The report further adds that this technology will ensure transparency, immutability, and simplicity in business processes while getting rid of all intermediaries in supply chains and logistics.
In the report, the authors cite several factors being the driving force behind the growth, among them being the development of blockchain-as-a-service (BaaS). A significant increase in ICO’s (Initial Coin Offering) and venture capital investments have also been listed as contributing factors towards this development.
On the flip side, the authors claim that the absence of uniformly set standards and uncertain regulatory landscape are dragging down the development of blockchain technology in manufacturing.
Earlier in March, the MAPI Foundation reported that as of January this year, the manufacturing output was lower, at 4.7% less than in December 2007. The foundation conducts research and formulate policy recommendations on the conditions facing the American manufacturing industry.
Aside from the slump that followed the 2008 recession, the foundation forecasts that the manufacturing sector will recover fully by April 2019. Mapi also projected the average growth rate for the U.S manufacturing sector to be 2.8% between 2018 and 2021.
In August, Deloitte’s 2018 survey on blockchain revealed that this technology is significantly gaining popularity at the executive level across diverse markets. Over 70% of the survey’s respondents said that executive teams believe that blockchain technology makes a compelling business case, while about 34% revealed that the technology was already in use within their organizations.ICO news Blockchain Crypto Market ICO Adoption Blockchain technology