Market Research Report
Blockchain in Agriculture Market Forecasts to 2028 - Global Analysis By Type (Hybrid/Consortium, Private, Public), Providers (Application Providers, Middleware Providers), Application (Payment and Settlement, Smart Contract) and By Geography
|Blockchain in Agriculture Market Forecasts to 2028 - Global Analysis By Type (Hybrid/Consortium, Private, Public), Providers (Application Providers, Middleware Providers), Application (Payment and Settlement, Smart Contract) and By Geography|
Published: May 1, 2022
Stratistics Market Research Consulting
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According to Stratistics MRC, the Global Block chain in Agriculture Market is accounted for $194.31 million in 2021 and is expected to reach $2,760.92 million by 2028 growing at a CAGR of 46.1 % during the forecast period. Blockchain technology can enhance food safety by bringing transparency to the supply chain and improving the farming process. This will result in saving time and money as well as the lives of the persons involved in the agricultural activities. Blockchain technology can also help in reducing the transaction costs and will open new markets for farmers in the emerging economies, thereby benefitting both the agriculture sector as well as farmers. Blockchain in the agriculture market is touted to dominate the future global business with improvement in logistics, quality assurance, and environmental farm plans, nutrient management plans along with the effective implementation of big data applications, AI applications, and precision agricultural activities.
Increasing Consciousness for Food Quality
Blockchain technology is revolutionizing the food and agriculture industries by improving organizations' decision-making abilities. Consumers to the present markets are aware of and demand full transparency in terms of their food product processes. With a view of fighting this issue of food safety, many companies have come up with pilot studies to use blockchain technology to determine and control the food product conditions throughout the supply chain. 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.
Technologies such as blockchain come into play, but questions remain about scaling up. The blockchain exists mainly through proof of concept addressing a limited number of users. It needs to prove it can perform (speed of transactions, storage capacity, volume of the ever-growing chain) for a wider audience. There are also questions of interoperability, in particular regarding the integration of blockchains into existing information systems. There is also a need to improve understanding of the blockchain. For it to be used transparently, companies will need to understand its benefits while remembering its limitations.
Rising Funding and Investments In Agri-Food Blockchain
The exponential growth of blockchain technology over the years, around different industry verticals, has fetched a huge amount of funding in the past few years. According to TechCrunch, the total capital raised through venture funds in blockchain technology amounted to billion USD. This proves that venture capitalists see a promising future of blockchain technology. Similarly, major investments are also being made in the organizations offering blockchain solutions and platforms to the food and agriculture industry.
Uncertainty in Regulations and Standards
The exponential growth of blockchain technology over the years, around different industry verticals, has fetched a huge amount of funding in the past few years. According to TechCrunch, the total capital raised through venture funds in blockchain technology amounted to a billion USD. This proves that venture capitalists see a promising future of blockchain technology. Similarly, major investments are also being made in the organizations offering blockchain solutions and platforms to the food and agriculture industry.
Small and Medium-Sized Enterprises segment is expected to be the largest during the forecast period
Small and Medium-Sized Enterprises segment is expected to have largest share, due to rising investment by the SMEs with the sustenance of the government and the increasing number of startups in this market along with the globe for the adoption of blockchain technology. Blockchain offers huge potential to improve the flow of information between different organizations and actors in the humanitarian space and to optimize response efforts.
The Smart Contract segment is expected to have the highest CAGR during the forecast period
Smart contracts are recorded in code form and maintained by a network of computers. It can independently carry out transactions according to the prescribed options without the services of typical intermediaries - banks, government agencies, or at the command of an agent who has the authority to do so. This provides several extremely significant features in the course of activities for agricultural production, without which it is impossible to imagine the organization of the trading process. Blockchain technology allows critical information about the farming, production, and transport of agri-commodities to be immutably recorded. With the power to trace commodities and build data-rich digital assets, the growing problems of food fraud and security across global agri-supply chains can be addressed with greater success.
Region with highest share:
The Asia Pacific is projected to hold the highest market share, due to growing investment made by numerous stakeholders and government support for exploration and acceptance of new technology in India. China and India are leading crop producers in the world, therefore the probability of food contamination, wastage, and fraud in the supply chain is relatively higher in these regions. The majority of APAC countries export their food products such as vegetables and fruits to European and North American countries. Thus, there exists tremendous potential in the APAC province of the market.
Region with highest CAGR:
North America is projected to have the highest CAGR, owing to the existence of major companies such as IBM and Microsoft in the U.S. The increase in research & development activities for block chain, owing to food safety concerns and the benefits this technology offers to the farming vertical in terms of transparency, payment, and land registry are the factors that are expected to drive the market in this region during the forecast timeline.
Key players in the market:
Some of the key players profiled in the Blockchain in Agriculture Market include VeChain.org, Ripe.io, OriginTrail, d.o.o., Arc-net, Chainvine Limited, Microsoft, IBM, AgriDigital, Provenance, BlockGrain, Ambrosus, SAP-SE, Sino-Global Shipping America, Ltd.
In March, 2021: Sino-Global Shipping America, Ltd. announced it has agreed to acquire a 60% ownership of blockchain infrastructure developer Super Node LLC in an all-stock transaction valued at $5 million.
In May 2021: Provenance announced a new public, open-source, decentralized, permissionless, proof-of-stake blockchain, which is mainly designed and established to support financial service industry needs by delivering a ledger, registry, as well as exchange across multiple financial assets and markets.
In October 2019: IBM had launched a blockchain-based supply chain service that comes with AI and IoT integration.
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Table17 Global Blockchain in Agriculture Market Outlook, ByApplication (2020-2028) (US $MN)