Blockchain in Manufacturing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The Blockchain in Manufacturing Market will register a CAGR of 76.26% over the forecast period. Blockchain technology in manufacturing provides immutable quality control documentation and manufacturing procedures for data, as well as the ability for customers to track and trace incoming parts across the supply chain. Every transaction, update, and quality control is automatically recorded in the blockchain by the industrial industry's database of blockchain technology.

Key Highlights

• Blockchain is increasingly used for logistics and supply chain management, counterfeit management, quality control, and compliance. Manufacturers are working on blockchain implementations that improve operational efficiency, give them more insight into their supply chains, and enable them to track assets with never-before-seen accuracy. Blockchain technology can completely change how manufacturers develop, engineer, produce, and scale their goods.
• In addition, blockchain technology can change the overall identification of the traditional manufacturing sector as the growing use of AI-enabled machinery, and automation in the manufacturing industry further increases the demand for blockchain technology in the manufacturing sector in the upcoming years.
• Moreover, the market is anticipated to develop due to rising demand from the industrial sector, the energy and electricity sectors, and consumers in general. Energy and power companies are encouraged by the rise in global energy demand to investigate blockchain technologies that could increase production while minimizing maintenance and downtime.
• Market growth is anticipated to be significantly constrained by factors such as the risk of compromising sensitive and essential information about a company's core operational procedures, a lack of blockchain experts in the manufacturing sector, the unpredictability of regulatory standards and landscape, and the absence of a set of uniform requirements.
• The COVID-19 epidemic caused significant disruptions to the supply chain systems since many essential tools and materials are heavily reliant on imports from other nations. In addition, the strict directives of the governing authorities to adhere to social distance standards pushed the industries to operate with a small workforce, which resulted in a decline in the sectors' production rates. All of these elements thus have a detrimental impact on the development of blockchain technology in the manufacturing industry.

Key Market Trends

Automotive Vertical is to Witness the Significant Growth

• A blockchain-based system can enable greater transparency in accurate information between different parties involved in the manufacturing the supply of the product. Multiple parties controlling various steps in the supply chain include a heavy flow of paperwork, faster processing of export/import, and banking documentation that can pace up the processes.
• Inbound logistics and smart manufacturing with blockchain can increase the efficiency of the automotive supply chain. Individual component tracking in the inbound supply chain is still a complex process. The coordination among third-party logistics, multi-tier suppliers, and transportation organizations through the manufacturing plant is essential for the effective functioning of the overall value chain. Adopting blockchain ensures the availability of accurate and real-time information amongst different parties.
• In vehicle manufacturing, blockchain can effectively prevent counterfeit issues, as every vehicle part can have a unique identity number. This will further help in issuing a less complicated recall.
• Blockchain solutions can address this problem by generating a unique ID for every different part, together with an immutable timestamp from when the part is manufactured. These tags will connect to the blockchain and can be set into the position to add another level of authenticity protection.

North America is Expected to Dominate the Market

• Due to the region's rapid adoption of blockchain technology in the manufacturing sector, North America is anticipated to have the largest share.
• However, the region has a strong foothold on blockchain vendors, contributing positively to the market's growth. Some include IBM Corporation, Microsoft Corporation, Amazon Web Services (AWS), and Oracle Corporation.
• The market's growth potential is further attributed to the early adoption of technological advancements and infrastructure, such as IoT, big data, DevOps, and mobility. Such high penetration levels of advanced technologies signify the preparedness of the manufacturers in the region to integrate blockchain technologies into their processes.
• Moreover, revenue growth in the North American market is mainly attributed to the growing adoption of blockchain technology in the manufacturing sector in the region. The region has steady and well-established economies, allowing it to invest significantly in developing new technologies in the manufacturing industry.
• Furthermore, the startup culture that is growing at a fast pace in North America, compared to other regions, coupled with increasing digitalization in manufacturing, is aiding the growth of the market in the area.

Competitive Landscape

The blockchain in the manufacturing market is consolidated owing to the presence of limited established and recognized vendors across the industry domain. The manufacturing sector has yet to adopt blockchain technology widely, so few vendors are offering the technology. However, because the market is still in its infancy, manufacturers constantly invest in new technology to gain the largest market share.

In January 2023, Amazon Web Services (AWS) and Ava Labs announced a partnership to bring better adoption of blockchain tech by governments, enterprises, and institutions, where AWS will support Avalanche blockchain infrastructure and decentralized applications (dApps), making it much easier for devs to launch nodes on the Avalanche blockchain. Ava Labs also plans to add a 'subnet' deployment feature to the AWS Marketplace, allowing individuals and institutions to quickly launch custom networks within the Avalanche blockchain.

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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