Blockchain in Agriculture Market Size to Grow at a CAGR of 31.4% During the Forecast Period 2021-2026

New York, NY -- (SBWire) -- 10/06/2021 --Blockchain in Agriculture Market size in 2020 is estimated at $1,21 million and is growing at a CAGR of 31.4% during the forecast period 2021-2026. Blockchain technology is an open, distributed ledger that records transactions between two parties efficiently and permanently. In the era of Industry 4.0, e-agriculture is the new spin in the world of cultivation. Application of blockchain is revolutionizing the modern 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 demand is expected to grow by up to 60% by 2050. The recent surveys suggested that 755 million people in 2019 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. The utilization of GPS and other technology will improve the food traceability and tracking which will enable better logistical supply and thereby reduce waste.

Blockchain in Agriculture Market Segment Analysis - By Type

By Type, Private Blockchain segment is forecast to be the fastest-growing segment and is projected to grow at a CAGR of 37.5% during the forecast period 2021-2026. This is owing to its advantages in banking and financial applications such as high security and reduction of fraud. Agriculture industry is undergoing policy reforms in almost every part of the world. Hence, new initiatives of production systems are being attempted in the form of contract farming or corporate farming. Big data analytics and processing is the collection of large and intricate data series which are generally difficult to process using common database management tools. Big data in agriculture is becoming a crucial aspect and accounts for nearly 5% of the market share of the entire big data industry. Big data analytics in the agriculture sector, in the near future, is anticipated to turn out to be the fifth largest industry in terms of market share.

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Blockchain in Agriculture Market Segment Analysis - By Technology

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 29.4%, 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.

Blockchain in Agriculture Market Segment Analysis - By Geography

North America was observed as most profitable region in the blockchain in the agriculture market in 2020. The region accounted for 42.3% 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.

Blockchain in Agriculture Market Drivers

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.

Improved Logistics 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.

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Blockchain in Agriculture Market Challenges

Limited Scalability

Technologies such as blockchain come into play, but questions still remain about scaling up. Today, 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 need to improve understanding of the blockchain. In order for it to be used transparently, companies will need to understand its benefits while remembering its limitations.

Blockchain in Agriculture Market Landscape

Product launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Blockchain in Agriculture market. The Blockchain in Banking and Financial Services Market is consolidated with key players accounting for about 60% of the market revenue in 2020. The top players include Agridigital, Blockgrain, Arc-Net, Hyperledger, Origintrail, Kinakuta, R3 Consortium, and Others.

Acquisitions/Product Launches

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 July 2021, Digital technology is being adopted by Kerala's beleaguered farming sector. According to K. Vasuki, Director of Agriculture, plans are afoot to roll out a digital platform for the farming sector, connecting all stakeholders and managing supply chains. The project is part of an e-governance initiative to establish an agriculture information management system and take the services of the department online.

Key Takeaways

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.

The key players are adopting strategies such as product launches, acquisitions, and partnerships, with other players and companies as well to strengthen their presence in the market.

The high costs of private blockchain are challenging the market. Private Blockchain are more expensive than other blockchain as it is valid for only one entity.

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