The strong growth in industrial blockchain revenue is due to the fact is due to the adaptation of those applications that have not been impacted significantly by the volatility of the broader blockchain market in the last two years. So despite, global blockchain revenues falling 35% between 2018 and 2020, industrial blockchain revenues specifically have grown by 131%, according to a recent report from ABI Research.
The firm estimates that 2020 revenues for this category will hit $374 million.
Looking head ABI research says that by 2022 revenues will hit $1 billion and then 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,” explains Michela Menting, Digital Security Research Director at ABI Research in a statement. “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.”
Other 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. Specifically, transportation for healthcare equipment has increased due to the pandemic.
The increase in usage by the retail sector is driven by the ability of blockchain to provide 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.
