ABI Research, a global technology analysis and advisory firm, notes in its latest report that the adoption of blockchain technology for the development of industrial applications grew by more than 130% this year, despite the fact that the industry in general reflected several declines and great volatility during this year.
The analysis and advisory firm ABI Research highlights that the industrial applications of blockchain and new technologies, such as Artificial Intelligence (AI), are challenging market volatility, attracting a large number of potential investors who see in these technologies unique abilities for future development. In its most recent reportABI Research also notes that this sector not only showed 131% growth this year, but will also continue to grow globally to reach and exceed $2 billion by 2025.
ABI Research notes that the blockchain industry, in general, saw a decline of close to 35% in its global revenues between 2018 and 2020, but the industrial applications sector in blockchain grew significantly. According to the studies and estimates made by this firm, this sector of blockchain technology has revenues of around 374 million dollars in 2020 alone.
“While the adverse effects on blockchain in general have certainly also affected revenue volumes, the interest and potential of various industrial applications is particularly attractive and has continued to attract investment.”
The report highlights that the great attraction in 2020 has been the potential of these technologies to develop innovative industrial applications and pilot projects that allow, among many things, to improve and optimize the automation of processes, accelerate transactions, improve flexibility in systems, reinforce security levels, optimize the supply chain, reduce operating costs, and more.
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Food and beverages, the boost of the blockchain market
Almost all industries are currently innovating with this and other emerging technologies, seeking favorable results that optimize the growth opportunities of each sector. However, where the greatest growth of blockchain technology is expected is in the food and beverage sector, according to research by ABI Research.
“The key vertical markets expected to thrive are primarily food and beverage, where the most successful pilot projects have emerged.”
According to the company, these are the sectors where innovative and efficient blockchain-based products have been developed, which is why they have become highly popular and in-demand business cases. The combination of blockchain's potential and the distributed ledger technology (DLT), with Artificial Intelligence, the Internet of Things (IoT), among others, has resulted in suitable and valuable applications to mitigate serious problems related to these sectors, such as the origin of inputs and raw materials, perishability, contamination, the cold chain, freshness, storage, among others.
Michela Menting, Director of Digital Security Research at ABI Research, points out that blockchain has the potential to provide an ideal solution that guarantees transparency and reliability within the long supply chain that operates within these two sectors, thanks to its characteristics of immutability, transparency and high security.
Other potential sectors for the development of the industry
In addition to the food and beverage sector, ABI Research notes that transportation, warehousing, and retail will be key to the blockchain market reaching $2.000 billion by 2025. According to its research, blockchain will be closely linked to international supply chains, an application that is being reinforced by the global health situation, where strict control is essential for the transportation and distribution of products globally, especially healthcare products and equipment.
In this regard, Menting also states that the growth in the development and adoption of industrial applications based on blockchain technology, to optimize the transport and distribution of products, along with supply chains, is being reinforced by COVID-19, and that since they are closely related to each other, growth in one “has a domino effect on the other,” creating a positive effect for the development and consolidation of the blockchain market.
New technologies and automation of Industry 4.0
ABI Research published a detailed analysis, titled 68 Technological Trends That Will Shape 2021, where he interprets, among many things, the role of new technologies within the growing Industry 4.0For the firm, the Internet of Things and Artificial Intelligence will continue to gain momentum in 2021, while indicating that, although the potential of blockchain is immense, in the short term it will continue to be underdeveloped and with a moderate level of priority, compared to other trending technologies. However, in this report the firm also points out that the true potential of this technology will be exploited within 5 years, where it will experience exponential growth in use and application.
Source: IBM
For its part, IBM, the renowned multinational technology, software development and cloud applications company, also published a report about the current role of blockchain technology as a key element of transformation in different industries. According to the company's analysis, blockchain technology has the potential to eliminate friction, generate trust and unlock new values within companies and industries. Due to this potential, we are likely to see mass adoption in the near future that will provide greater efficiency and transparency to industries.
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