BLOCKCHAIN IN AGRICULTURE MARKET - KEY RESEARCH FINDINGS
- The blockchain in agriculture market will surge at a remakable CAGR of 41.0% between 2019 and 2029.
- The large enterprises segment dominated the blockchain in agriculture market.
- The product traceability, tracking, and visibility segment held the largest share, and it is expected to remain dominant through the forecast period owing to factors such as an increase in investments for food safety and transparency along the supply chain and consumer demands for the knowledge of the provenance of food products.
- North America accounts for the largest share of the global blockchain in the agricultural market owing to the presence of major companies such as IBM and Microsoft in the U.S.
- Increasing investment from various stakeholders and government to support exploration and adoption of new technologies is expected to drive the blockchain in India's agricultural market.
KEY FACTORS SHAPING THE BLOCKCHAIN IN AGRICULTURE MARKET
- Blockchain Technology in Agriculture Sector
- Blockchain technology is revolutionizing the food and agriculture sectors by enhancing the decision-making capabilities of organizations. According to the FAO, about one-third of the food produced worldwide is wasted each year, which calls for a need to estimate and control the real supply and demand of food items so that they reach the poor. These problems can be tackled easily and efficiently using the blockchain network.
- With stringent lockdowns being instituted, companies have shuttered their facilities, people were ordered to stay at home. These restrictions will have impact in the blockchain in agriculture market as well. The market will however regain pace once economies start to returning to normalcy. Economic aid packages by governments, business loans and subsidized wages for workforce will revive manufacturing output and offer favorable prospects for the blockchain in agriculture market.
- Acceptance Among Small & Medium Enterprises
- The small and medium-sized enterprises segment is projected to grow at the higher CAGR during the forecast period. The growing investment in small and medium-sized enterprises by government support and the rising number of start-ups in this sector will boost the adoption of blockchain technology.
- Transparency in Food Chain
- When it comes to the way the food supply chain is managed currently, it has become challenging food producers and retailers to confirm the provenance of the products. With the emergence of the blockchain, it has become possible to bring trust and transparency in the food supply chain ecosystem, ensuring food safety for everyone. The rising demand for food safety will therefore boost the market in the coming years.
- Innovative new product releases, acquisitions, financing and alliances and collaborations are the main strategies adopted by market players.
- Eka Software Solutions Pvt Ltd announced in March 2019 that it was launching a new blockchain application for Indian coffee farmers. The introduction of this platform helps a variety of users and farmers to reduce waste and to provide a focused area for the selling of their products.
- In January 2019, HARA announced that, they had collaborated with Singularity NET at the World Web Forum held in Zurich, Switzerland from January 17-18, 2019. This collaboration helped farmer in delivering AI-based information on crop, soils, on the blockchain platform provided by HARA.
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- Base year considered - 2019
- Actual estimates/Historical data - 2014 – 2018
- Forecast period - 2019 – 2029
- Market Value in 2019 - US$ 2068.5 Mn
- Segments covered - Organization Size, Application, Provider and Region
- Regions covered - North America, Latin America, Europe, East Asia, South Asia, Oceania and MEA
- Key Players - BM (US), Microsoft (US), SAP-SE (Germany), Ambrosus (Switzerland), Arc-net (Ireland), OriginTrail (Slovenia), Ripe.io (US), VeChain (China), Provenance (UK), ChainVine (UK), AgriDigital (Australia), and BlockGrain (Australia)
- Growth Drivers
- Increasing concerns regarding the wastage of food grains and agricultural resources
- Rising cases of food contamination and food scams
Product Traceability, Tracking, and Visibility Segment is Estimated to Dominate
The product traceability, monitoring and visibility segment is expected to dominate the blockchain market in agriculture and the food supply chain over the forecast period. The growing demand for platforms and solutions to achieve full traceability of food products across the supply chain and the instances of food fraud in many countries are the key factors that help the need for product traceability, monitoring and visibility applications.
However, there has been an increase in blockchain technology investments in the vertical food and agriculture sector, along with an increase in the number of pilot studies across the globe. The blockchain payment and settlement segment in the agricultural and food supply chain market is projected to rise at the highest CAGR.
Uncertainty in legislation and standards is the key factor restricting the development of blockchain in the global market for agriculture and the food supply chain.
North America is Projected to Dominate the Blockchain in Agriculture Market
North America is expected to be the largest market in the global blockchain market in agriculture and the food supply chain. This field includes economies such as the US and Canada, which have a large share of the global blockchain in the market for agriculture and the food supply chain. This region has witnessed maximum investment in the R&D of new technologies primarily involved in the trade movement of commodities for food and agriculture.
This has provided a greater likelihood that this technology will be implemented in this region. The emergence of large technology providers such as IBM and Microsoft in North America and large retailers and food processors such as Walmart, McCormick & Co. and Dole Food Company is the major contributing factor to the growth of the agricultural and food supply chain blockchain market in this area.
Rising Awareness for Food Quality is Driving Market Growth
The growing concern over food grain waste and food fraud is the key factor driving growth in the market. Furthermore, the growing need for transparency in the food supply chain is another factor that propels market growth. In addition, technological growth in the agricultural sector has led to the launch of agricultural start-ups and thus leads to the positive effect of accelerating the market.
Blockchain technology is revolutionizing the food and agriculture industries by improving the organizations' decision-making ability. It identifies many possible applications in these fields, some of which have been explored already. Blockchain technology's main applications in food and agriculture include traceability and monitoring, payment and settlement, smart contracts and management, risk, and enforcement.
The growth of the blockchain market in agriculture and the food supply chain is due to the increase in demand for transparency in the supply chain, the increase in food fraud cases and the increase in concerns toward food wastage.
How Growth will Unfold
Blockchain technology is revolutionizing the agricultural sector by increasing the organizations' decision-making ability. It identifies many possible applications in the field, some of which have been explored already. Blockchain technology's main applications in agriculture include traceability and monitoring, payment and settlement, smart contract management, and governance, risk and enforcement management.
Growth in the blockchain in agriculture market will be propelled by the increasing demand for transparency in the supply chain, increased food fraud cases and increased concerns regarding food waste. Blockchain can help replace sluggish manual farming processes, improve traceability, and reduce IT transaction costs in the food supply chains. Nonetheless, blockchain has its drawbacks, as the system cannot collect data from a number of untrusted participants / vendors.
Furthermore, there is a mammoth gap between the existing capability of the technology and the capability needed by the supply chain. Such factors will slow down the growth of blockchain in the agricultural market in the near future. Nonetheless growth strategies adopted by the leading companies are likely to have positive impact on the global market.
BLOCKCHAIN IN AGRICULTURE MARKET TAXONOMY
The global Blockchain in Agriculture market is segmented in detail to cover every aspect of the market and present complete market intelligence to readers.
- Application and solution provider
- Middleware provider
- Infrastructure and protocol provider
- Product traceability, tracking, and visibility
- Payment and settlement
- Smart contracts
- Governance, risk and compliance management
- Large enterprises
- Small and medium-sized (SMEs) enterprises
- North America
- Latin America
- East Asia
- South Asia