- Last month, BEG reported that global spending on blockchain-based initiatives (across the globe) will scale up to the $2.9 billion mark by the end of 2019.
- The aforementioned figures showcase an 88.7% increase in relation to associated numbers from 2018.
According to an all new research study released by ReportLinker recently, the blockchain market that currently exists within the automotive/ aerospace sector is all set to surge beyond the $29 billion mark by 2029. To be a bit more specific, we can see that the author of the above stated article feels as though blockchain applications being used within the automotive/aerospace industry will grow at a “compound annual growth rate of 60.35% between 2019 and 2029”.The primary growth factors behind such a projected surge include things like:
- Operational transparency
- Quick transaction settlements
- Reduction of risks associated with fraud
According to the report:
“The finance, payments, and insurance services for the automotive industry and manufacturing and supply chain for aerospace & aviation industry is dominating the blockchain in automotive and aerospace & aviation market and is anticipated to maintain its dominance throughout the forecast period. This is mainly due to a complexity in supply chain of the automotive industry, as automotive ecosystem is highly connected, and therefore the issues of cyber threat increases.”
The Study Also Highlights The Following Points
- Private blockchain ecosystems will continue to gain more footing within the global finance market due to their security and speed related advantages over private, hybrid blockchains.
- From an adoption POV, it is estimated that companies located within North America will lead the world in automotive blockchain adoption. However, the report also states that some of the problems that may stifle blockchain adoption moving forward could involve factors such as: unavailability of a proper regulatory framework, lack of technical expertise, etc.
In closing out this piece, it should be pointed out that the US federal government is all set to raise its spending on blockchain-related ventures to a whopping $123.5 million by the end of 2022. This showcases a 1,000% increase in the US’ total blockchain associated expenditure when compared to 2017 — a time when the govt only allocated a meager $10.7 million towards blockchain research.