Industrial Blockchain Applications Defy Downturn to Grow Exponentially Over the Next 5 Years to US$2 Billion Globally
The industrial segment is the key driver for the blockchain market overall, with the exponential growth expected over the next few years. By 2022, ABI research expects revenues to hit US$1 billion, and double by 2025.
“The key vertical markets expected to thrive are primarily around food and beverage, where the most successful pilots and projects have emerged. The tracking and tracing of these products have become a popular business case, due in large part to the ability of distributed ledgers, combined with industrial IoT sensors, to safeguard against common issues such as perishability, contamination, cold chain, freshness, etc. Certainly, blockchain provides an ideal solution for transparency within the long supply chain dealing in this sector,” explains Michela Menting. Digital Security Research Director at ABI Research.
The two other key verticals set to take off include transport and storage, and retail and consumer. “In particular, transport, shipping, and distribution are closely tied to international supply chains, and growth in one has a knock-on effect on the other,” says Menting. Covid-19 has also had a positive effect on the transport and logistics market, with increased demand around transportation specifically for healthcare equipment.
Regarding retail and consumer, interest there is likely to be driven initially by the maturity of blockchain transparency capabilities in supply chains for participants, which eventually trickles down to providing visibility to consumers. “Beyond that, the societal impact of millennial generations with purchasing power is set to grow, as they become increasingly interested in product provenance for ethical and environmental reasons,” Menting concludes.
These findings are from ABI Research’s Industrial Blockchain and Distributed Ledger Technology market data report. This report is part of the company’s Industrial & Manufacturing research service, which includes research, data, and ABI Insights. Market Data spreadsheets are composed of deep data, market share analysis, and highly segmented, service-specific forecasts to provide detailed insight where opportunities lie.