Asia-Pacific is Expected to Dominate the Blockchain in Manufacturing Market, Reports ResearchAndMarkets.com
The global spending on the blockchain by the manufacturing sector was valued at USD 546.53 million in 2020, and it is expected to reach a value of USD 16,243.22 million by 2026, registering a CAGR of 76.26% over the forecast period 2021 -2026.
Key Market Trends
Electronics and Semiconductor Vertical is Expected to Account for the Largest Market Share
- Electronics and semiconductor manufacturers are facing a number of quality, logistics, and supply chain challenges in the industry. Poor quality and counterfeiting to inefficient processes and a lack of trust in production are driving the demand for advanced solutions in the sector.
- With complex manufacturing processes, the demand for parts and material integrity within the supply chain needs to be enhanced in order to reduce the lead time and lower the production cost. In each stage of electronics and semiconductor manufacturing, blockchain could be applied in a variety of use cases to expedite processes and overcome the security issues.
- For instance, in pre-production scenarios, manufacturers can utilize blockchain solutions for Collaborative Planning, Forecasting, and Replenishment (CPFR). Data related to materials of components and subcomponents of manufacturing equipment and products can be stored and analyzed in blockchain, which can further help in verifying compliance with health and environmental regulations.
- Suppliers can also integrate IoT sensors with blockchain on shipping containers to provide a tamper-resistant record of shipping conditions. It is estimated that annually counterfeiting costs USD 7.5 billion to the US-based semiconductor manufacturers. Therefore, adopting a blockchain solution can help them minimize these costs.
- Foxconn, Taiwan Semiconductor Manufacturing Company, and Samsung are some electronics and semiconductor manufacturers that are also utilizing the potential of blockchain technology for advancing their manufacturing process.
Asia-Pacific is Expected to Dominate the Market
- Manufacturing is one of the pillars of Asia-Pacific’s economy and is undergoing a rapid transformation. It is reported that low-end manufacturing firms are moving to Southeast Asia to cut costs, including automotive and electronics manufacturing companies. It is estimated that in the next five years, the automotive industry may expand by 6-7% annually.
- Manufacturing in China, which is one of the largest in terms of output, globally, is undergoing a rapid transformation. This large-scale transformation has aided the country in maintaining its position in the manufacturing space, globally.
- Apart from China, Japan is predominantly a manufacturing nation. Its manufacturing industry contributes close to 20% to the nominal GDP, whereas, for other developed countries, it is close to 10%. According to the IMF, the manufacturing sector in the country has achieved significant industrial productivity gains over the services sector, owing to the increased adoption of ICT. The automotive and electronics sectors are the most productive manufacturing sectors in the country
- On the other hand, India is one of the strongest emerging economies in the Asian markets, and the manufacturing sector witnessed high growth in the country due to government initiatives, like ‘Make in India’, which are aimed to provide global recognition for the manufacturing hub and are expected to drive the adoption blockchain technology.
The “Blockchain in Manufacturing Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” report has been added to ResearchAndMarkets.com’s offering.