IHS Markit that blockchain business value—which refers to the cost savings and efficiencies that could be realized by incorporating blockchain into corporate business strategies—will increase from $2.5 billion in 2017 to $2.0 trillion in 2030.
Although blockchain is still an emerging technology, it is expected to be transformative. According to the “Blockchain Vertical Opportunities Report” from IHS Markit, this technology demonstrates especially significant potential across the following vertical industry markets and application areas:
Financial. The financial vertical market, which includes financial services, insurance and financial technology (fintech), will primarily use blockchain to conduct cross-border payments, share trading, securities, claims management, derivatives, asset custody across both public and private markets, currency, collateral management and corporate actions processing. Because the market capitalization of all the world’s stock markets is equal to $73 trillion, even small cost savings and efficiency gains can lead to significant business value for companies and industries that decide to introduce blockchain technology.
Supply chain and logistics. The supply chain and logistics industry is projected to improve significantly with the introduction of blockchain technology. Indeed, the World Trade Organization (WTO) estimates that the reduction of barriers throughout the supply chain could potentially increase global gross domestic product by 5%, and escalate total trade volume by 15%.
Identity management. Although identity management is not a vertical market, it is an application area that is used in many vertical markets. With the projected increase in the number of blockchain projects that are launched and become commercially deployed, the business value within the identity management sector is projected to reach $200 billion by 2030. The ID2020 initiative continues to promote and support blockchain technology to help the 1.1 billion people who live without an officially recognized identity.
Retail and e-commerce. The initial uptake of blockchain in retail and e-commerce is projected to be led by trade promotions, decentralized marketplaces, payments, smart contracts, supply chain and other applications. With the increase in the number of blockchain projects that are launched and become commercially deployed within this vertical sector, the business value is projected to reach $164 billion by 2030.
Healthcare. In the United States alone, counterfeit drugs cost pharmaceutical companies more than $200 billion annually in lost revenues. Blockchain could potentially help to minimize these losses. For this and other reasons, the business value from blockchain in the healthcare sector is projected to reach $134 billion by 2030. The initial uptake of blockchain within the healthcare sector is happening in the application areas of medical data management, drug development, claim and billing management, and medical research.