Industries have been using blockchain in manufacturing to ensure that the supply chains function seamlessly with greater transparency and efficiency. But does it have the potential to change the current scenario in the manufacturing industry? As per statistics, the blockchain technology in the manufacturing market will be worth $30 M in two years from now and $566.20M by 2025. It will increase with a compound annual growth rate (CAGR) of 80 percent.
Some of the key factors that will drive the rise of blockchain technology use in the manufacturing market include blockchain-as-a-service solutions for companies, affording transparency, simplifying business processes, and immutability and many more. Why has manufacturing suddenly become so important? It is because the success of a manufacturing supply chain is very much significant to the success of those who are a part of it.
Since each one of the participants relies on the other and keeps a tab or monitor the supply chain by contacting one above or below them, the entire nature of the chain is not clearly visible to the participants. Rather it is often obscure even to those who are the major participants.
It is where blockchain can make a difference in the manufacturing field. Blockchain offers an alternative to the current system in which all the participants have an access to a shared set of records, JD Supra reported. This shared record can be achieved with the help of decentralized and transparent ledger of transactions at each stage of the supply chain and viewable by every participant all the time. Since it is an unbroken chain it acts as a single reference point for everyone.
This feature, in particular, can help with partner confidence, efficiency, risk management, and opportunity. A leading supply chain management platform SyncFab has realized the potential of blockchain and leverages this technology to expand and grow beyond the realms of North America, Cryptovest reported. In a way, SyncFab is setting an example of using blockchain innovation in smart manufacturing.
The implementation of blockchain technology in manufacturing is not surprising as the solutions offered by SyncFab are very convenient and offer embedded accessibility and transparency. Thus, it helps to cut down risk and costs for the manufacturers globally. According to Reportlinker, the manufacturers can use diverse strategies such as launches of product and advancements, collaborations, strategic agreements, alliance and joint ventures for increasing influence of blockchain in the manufacturing market.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]