Businesses are constantly evolving and adapting to changing market needs. As new technologies emerge and are integrated into industrial processes, they can have a significant impact on industrial markets. Blockchain technology is one such technology that has the potential to revolutionize traceability in industrial sectors, including manufacturing, mining, construction, transportation, and energy, and enhance transparency and efficiency in supply chain operations. Achieving traceability, visibility, and provenance is critical for businesses in industrial markets as it allows them to track and trace their products across the entire value chain, from raw materials to the end consumer, and even post-consumer waste. In this blog post, we will explore how blockchain can help unlock traceability in industrial markets and drive digital transformation in the industrial sector.
A McKinsey research shows that achieving successful transformation across the whole industrial sector would be worth $0.8 trillion to $2 trillion in total return to shareholders, an increase of 9 to 22 percent. This value comes from two sources: an estimated $0.3 trillion to $0.9 trillion in revenue growth (an improvement of 3 to 10 percent), and $0.3 trillion to $0.7 trillion in margin expansion from efficiency gains (an improvement of 4 to 9 percent).
Moreover, the State of European Industrial Tech report found that the industrial technology sector has experienced significant growth, with its value tripling in just three years. It now receives nearly $6 billion in annual funding and has fostered startups worth over $100 billion. The corporate sector is also playing a bigger role in the industrial tech market, with corporate investment in European industrial tech exceeding $802 million in 2022, which was the amount invested in 2020 and exceeded that of 2021.
These numbers show that there is a great potential for growth and improvement in the industrial markets. By embracing new technologies like blockchain, businesses in the industrial sectors can enhance transparency, efficiency, and traceability in their supply chain operations, which can lead to significant revenue growth and margin expansion.
By using blockchain for creating a digital record of products, which includes information on the origin of raw materials, industrial processes at play, and the quality and compliance of the finished goods, industrial technology players can collectively create a digital product passport, which optimizes their supply chains by reducing lead times, improving inventory management, and increasing efficiency.
In short, blockchain and digital traceability have significant benefits in the context of industrial markets and are generating quantifiable business value in the form of increased profitability and operational efficiency.
The rise of industrial technology has transformed the landscape of various sectors, from manufacturing to transportation, mining to energy production. The integration of cutting-edge technologies like blockchain has revolutionized supply chain management, bringing traceability, visibility, and provenance to the forefront. Combined with other rapidly maturing technologies like AI, industrial technology is driving efficiency, agility, and scalability, enabling businesses to meet customer demands and deliver high-quality products faster than ever before.
Furthermore, blockchain technology can automate processes and reduce costs by creating smart contracts. For instance, it can automate the verification of sustainability certifications, which saves time and money while ensuring compliance with regulations.
To further explore the potential of industrial technology and blockchain in driving digital transformation, we invite you to download our ebook titled "The Rise of Industrial Tech: Digital Transformation Lands in the Industrial Sector." In this comprehensive resource, you will gain insights into the latest trends, use cases, and best practices in leveraging blockchain for optimizing supply chains and achieving sustainable business outcomes.