The global blockchain technology market in transportation and logistics industry to grow at a CAGR of 82.86% during the period 2018-2022.
Blockchain technology is a cryptographically managed, distributed ledger system offered by vendors such as IBM, Microsoft, Oracle, SAP, and Tata Consultancy Services.
The latest trend gaining momentum in the market is the advent of blockchain as a service (BaaS) which will lead to the growth of the market, according to Global Blockchain Technology Market in Transportation and Logistics Industry 2018-2022 by ResearchAndMarkets
BaaS enables vendors to set up blockchain connected nodes on behalf of the enterprise and manage the back-end.
According to the report, one of the major drivers for this market is the growing use of blockchain technology for trucking. The growth in the number of infrastructure projects, rise in demand from the logistics sector, and increase in demand for an efficient supply chain to transport goods are factors that are boosting the demand for trucks.
Further, the report states that one of the major factors hindering the growth of this market is the high cost of implementing and maintaining blockchain technology. The initial implementation of this technology is capital intensive as the software required is developed specifically for each firm and is thus expensive.
Key vendors: IBM, Microsoft, Oracle, SAP and Tata Consultancy Services.