Redefining Manufacturing: Blockchain Leading the Charge Beyond Industry 4.0
From the desk of Muzaffar Sayyed
Gone are the days when Blockchain was just limited to cryptocurrencies. Blockchain technology has come a long way and is now redefining multiple industry verticals with its unique approach. From process efficiency enhancement to supply chain management, almost all manufacturing aspects are revolutionized through Blockchain technology as decentralization gains traction around the world. As per Skyquest analysis, the blockchain in manufacturing market is projected to transcend a valuation of USD 70058.5 million by the end of the forecast period whilst expanding at an exceptional CAGR of 71.6% from 2024 to 2031.
Applications of Blockchain in Manufacturing
The scope of application of Blockchain in manufacturing is limitless but some key prospects are being focused on by most companies.
Supply Chain Transparency
Managing the supply chain is highly vital to any manufacturing operation and ensuring proper visibility and transparency goes a long way for manufacturers. Blockchain is just the technology when transparency and security are needed. Tech giants have already started implementing Blockchain supply chain to improve traceability of multiple supply chain components and improve the overall supply chain transparency.
Quality Assurance and Inspection Compliance
Data recorded on a Blockchain is immutable and this is why manufacturers can completely trust the quality inspection systems based on Blockchain. From material sourcing to finished product delivery, Blockchain solutions can monitor quality through every phase of production and trace back any issues to the source effortlessly with minimal margin of error.
Smart Contracts and Secure Payment
Use of smart contracts can help manufacturers automate various tasks such as procurement and payments. Smart contracts are executed with parameters set by the contract developer are met and this is how companies can just set parameters for automatic execution to maximize optimization without compromising compliance. Manufacturing companies can also ensure secure payments to other companies through Blockchain technology in a much faster and effortless way.
Future Opportunities for Blockchain in Manufacturing Companies
Automation
Automation is becoming an essential part of the manufacturing world, and this is where deployment of Blockchain could increase. Use of Blockchain in conjunction with smart automation technologies and devices could further help refine manufacturing operations. Integration of artificial intelligence, Internet of Things (IoT), and Blockchain could create a highly efficient manufacturing ecosystem in the future. Blockchain as-a-service is also a key trend that will shape the future of automation.
Sustainability
Ensuring sustainability in manufacturing practices will become highly important for manufacturers in the future. Blockchain technology can help manufacturers show complete transparency of their process and ensure sustainability standards are met through immutable records. This will also help manufacturers comply with changing sustainability mandates and achieve their sustainability goals as well. Several companies are focusing on establishing a circular supply chain and Blockchain is the technology that makes it happen for them.
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Hyundai Motor Group and Kia back in August 2023, announced the launch of a new Blockchain-based system to track emissions from their suppliers. The Supplier CO2 Emission Monitoring System (SCEMS) works by combining the technological prowess of artificial intelligence and Blockchain technologies
View more info and detailed Table of Contents here: https://skyquestt.com/report/blockchain-in-manufacturing-market
Roadblocks in the Path of Blockchain in Manufacturing Adoption
Legacy System Integration
Blockchain is a highly advanced digital technology, and most manufacturing ecosystems are still using old systems that are not compliant with modern solutions. Absence of legacy system compatible Blockchain solutions and high investments associated with Blockchain infrastructure set up are slowing down market growth.
Regulatory Compliance Concerns
Though Blockchain technology is massively popular, its practical application scope is hindered in all industries due to regulatory compliance issues. Ensuring compliance with different mandates issued by governments and regulatory bodies is a very complex task and this also impedes blockchain in manufacturing adoption.
High Initial Investment
Setting up Blockchain infrastructure is a highly expensive task as it involves the use of advanced technologies and skilled professionals. High costs of hardware systems and the amount of time taken to configure and ensure interoperability of these Blockchain systems are also slated to slow down the demand for blockchain in manufacturing going forward.
Is the Future Bright for Blockchain Providers Targeting the Manufacturing Industry?
“Yes” and “No”. The benefits of Blockchain adoption in manufacturing are evident and required in some cases, which is what makes this a highly promising market for all companies involved. However, the complexities in the details of blockchain adoption in manufacturing tell a different story. Blockchain manufacturing companies should tread carefully and be more vigilant in what aspect of this market they invest in.
The service aspect of this market is projected to be highly remunerative for any company irrespective of their strategy. However, the infrastructure and hardware side of blockchain in manufacturing market could be a tricky one for companies. To wrap it up, the blockchain in the manufacturing market is highly opportune but companies need to determine where their business can flourish and how they can maximize their business scope in the long term.
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