While global blockchain revenues fell by 35% between 2018 and 2020, industrial blockchain revenues specifically have grown by 131% to $374-million this year, says global technology market advisory firm ABI Research.
The industrial segment is the key driver for the blockchain market overall, with exponential growth expected over the next few years.
ABI Research expects industrial blockchain revenue to reach $1-billion by 2022 and $2-billion by 2025.
While adverse effects on blockchain generally have no doubt also impacted on revenue volumes, the interest and the potential of various industrial applications is especially appealing and has continued to attract investment, the firm says.
“The key vertical market expected to thrive [is the] food and beverage [sector], where the most successful pilots and projects have emerged. The tracking and tracing of these products has become a popular business case, owing largely to the ability of distributed ledgers (blockchains), combined with industrial Internet of Things sensors, to safeguard against common issues such as perishability, contamination, cold chain and freshness, besides others. Certainly, blockchain provides an ideal solution for transparency within the long supply chain in this sector,” explains ABI Research digital security research director Michela Menting.
The two other key verticals set to take off are 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.
Covid-19 has also had a positive effect on the transport and logistics market, with increased demand around transportation specifically for healthcare equipment, she says.
For retail and consumer uses, interest 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.