The blockchain sector is predicted to witness a substantial growth, with sales expected to rise from $12 billion in 2023 to $291 billion by 2030, growing at a 55 percent compound annual growth rate (CAGR), according to a recent study by GlobalData.
This increase is mostly driven by developments in asset tokenization and a move towards more targeted investments in sectors like infrastructure services and blockchain development.
Key highlights
The report titled ‘Thematic Research: Blockchain’, shows a strategic shift away from the technology’s generic, indiscriminate use and towards its deployment in particular strategic settings.
The report stated that construction firms are not making major investments in cultivating internal blockchain knowledge, despite their expansion. Rather, they use pre-made blockchain apps or rely on outside IT and professional services for blockchain knowledge. Any use of blockchain in the construction industry might start with the adoption of Building Information Modelling (BIM) software. In a poll on the use of BIM in 2023, 54 percent of the 150 companies surveyed stated that they had made investments in BIM and planned to make more in the next two years.
Following a 1,700 percent annual spike, the number of active blockchain employment in the construction industry peaked in the third quarter of 2021. This pattern is consistent with the 450 percent increase in the overall market capitalization of cryptocurrencies during the same time frame.
Blockchain in construction company filings
The report also shows that blockchain was the most talked-about topic alongside ESG and AI in construction firm filings, with mentions of blockchain peaking in 2022. Even with the increased interest, there are still obstacles to overcome before blockchain can be widely used in the construction industry. These include unstable on-site conditions and weak data connectivity at construction sites.
Due to the complexity and dynamic nature of the construction business, each project frequently involves a number of suppliers, subcontractors and stakeholders. This may make it challenging to manage and coordinate the supply chain, which might result in mistakes, delays and higher expenses. These issues could be resolved by blockchain technology, which offers a transparent and safe means of tracking and managing transactions.
The report’s main conclusion is that asset tokenization is becoming more and more significant. This procedure turns digital or tangible assets into divisible, tradeable digital tokens. This method provides a fresh perspective on asset ownership by enabling fractional acquisitions of assets, which may change how illiquid assets like fine art, real estate, and precious metals are handled.
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