In the era of Industry 4.0, e-agriculture is the new spin in the world of cultivation. Application
of blockchain is revolutionizing the agricultural sector by improving the
farming process and integrating transparency to food supply chain. The
decision-making process in the agricultural industry can be tremendously
improved by using blockchain technology. The global population is expected to
surpass 9.7 billion by 2050, and the food demands are expected to grow by up to
60% by 2050. The same source suggested that 815 million people in 2016 suffered
from chronic hunger. And during the same time, around one-third of food
produced was wasted or lost through food supply chain. Lack of food is not the reason for global hunger and malnutrition, rather, the poor accessibility of food is.
Advanced
technology such as cloud computing, machine learning, IoT, and blockchain are
being leveraged upon by food production companies to tackle issues such as food
waste and food adulteration. As per the World Health Organization, around one
in every ten people get ill by eating contaminated food and about 420,000
people die every year due to the same problem. To handle such issues,
e-agriculture is being implemented as a part of modern agriculture technique to
improve the yields of production, and enhance operations in the supply chain.
Blockchain can improve food safety by enhancing the farming process and
integrating transparency in the supply chain. For agricultural supply chain,
the blockchain technology promises to optimize efficiency through
robust traceability, lower transaction cost, enhanced data management,
improvised logistics, and enhanced food safety protocols.
All the stated
factors resonate the growing nascent Blockchain In Agriculture Market, which
held the global market size of $48m in 2018. Demand of blockchain in the
agriculture market is expected to grow at a CAGR of 35.21%, during the forecast
period 2019-2025. Thus, the advantages that the
blockchain technology can offer in the agricultural sector are tremendous, and
therefore the demands for implementing blockchain in the agricultural field are
being witnessed from across the globe.
North America: Most Lucrative Region
North America was observed
as most profitable region in the blockchain in the agriculture market in 2018.
The region accounted for 46.58% of the total blockchain in the agriculture
market share. The presence of blockchain companies in the region is considered
as major reason for huge market share. The region is witnessing abundant R&D
activities to implement blockchain in the agriculture. The main reason
inducing investment and research is growing concern over food safety and food
accessibility. Additionally, blockchain
technology also offers benefits to the farming sector in terms of land
registry, payment, transparency, and food distribution.
These aspects are supporting the growth of the North America blockchain in the agriculture market. Beside fast developments in North America, the blockchain in the agriculture market has shown significant potential in the Asia-Pacific. 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. Majority of APAC countries export their food products such as vegetables and fruits to European and North American countries. Thus, there exist a tremendous potential in the APAC region of the Blockchain in agriculture market.
Application Analysis in the Blockchain in Agriculture Market
By application, the
product traceability, tracking, and visibility are considered as dominating
application in the blockchain in the agriculture market. This application in
the blockchain in the agriculture market is expected to grow at a CAGR of
28.68%, during the forecast period. Food
traceability is a major factor that is positively influencing the blockchain in
the agriculture market. Increasing demand for
solution and platform to attain detailed food traceability throughout its
supply chain is the major factor supporting the demand for tracking,
visibility, and traceability application.
By enabling efficient traceability, fraud
activities in the supply chain could be tracked easily with the help of GPS
technology, which will consequently reduce food adulteration at a considerate
level. Also, with food tracking solution, the customer will be informed about
the status of their food and this will prevent any middlemen to breach the supply chain.
Top Trends in the Blockchain in Agriculture Market
· Automation of Agricultural Equipment: Automation is taking over the processes involved
in major end-user industries. Similarly, automation of agricultural equipment
is transforming the operating processes involved in farming. Also, with
automation, a considerate amount of data will be generated which can be handled
using the blockchain. Thus, with high potential of blockchain technology in the
agriculture sector, it is projected to drive revenue in the global blockchain
in agriculture market.
· Cloud-Based Commodity
Management: Digital
record of food and crops produced in a particular area is stored in a cloud
infrastructure. The blockchain technology can be integrated with cloud
computing techniques to streamline data storage and commodity management.
Moreover, with cloud computing, operators in the sector can remotely manage the
finance, traceability, and volume of the commodity.
· Logistic Handling: Short shelf-life of products is a major
challenge faced by Logistics department of the agriculture industry, mismanaged
logistics can cause heavy economical loss and food loss. Therefore, some transport
companies are teaming up with blockchain companies to provide decentralized and
traceable transit technology for agricultural products. A
managed blockchain network can highly improve the availability and reach of
food. Thus, mutual business strategies in both fields will contribute in growth
of the blockchain in agriculture market.
· Food Integrity and Crop
Insurance: Companies are leveraging upon blockchain to enhance crop insurance
process. With crop insurance, end-user will be aware about harvest, storage,
and delivery of food. The food
providers will not be affected, due to middlemen, and the business will be
transparent between two parties namely the consumers and the producers. Moreover, in case of bad
weather, farmers can request insurance claim. Thus, effective implementation of
crop insurance will stop the production and distribution of adulterated food
and will ensure food integrity.
Blockchain in Agriculture Market Competitive Landscape
The companies influencing the blockchain in agriculture market are Agridigital, Blockgrain, Arc-Net, Hyperledger, Origintrail, Kinakuta, R3 Consortium, and Others.
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