Blockchain’s Growth in Construction Industry: A Report Analysis
The construction industry is gearing up for a major transformation as blockchain technology takes center stage alongside ESG and AI, according to a recent report by GlobalData. The study predicts a significant growth in the blockchain sector, with sales expected to skyrocket from $12 billion in 2023 to a whopping $291 billion by 2030, growing at a compound annual growth rate of 55 percent.
One of the key highlights of the report is the strategic shift towards targeted investments in sectors like infrastructure services and blockchain development, driven by advancements in asset tokenization. Despite the potential for growth, construction firms are not heavily investing in cultivating internal blockchain knowledge. Instead, they are relying on pre-made blockchain apps and outside IT and professional services for expertise.
The report also reveals that blockchain was the most talked-about topic alongside ESG and AI in construction firm filings, with mentions of blockchain peaking in 2022. However, there are still obstacles to overcome before blockchain can be widely adopted in the construction industry, such as unstable on-site conditions and weak data connectivity.
One potential solution to these challenges is asset tokenization, which turns digital or tangible assets into tradeable digital tokens. This process could revolutionize asset ownership by enabling fractional acquisitions of assets, changing how illiquid assets like fine art, real estate, and precious metals are managed.
Overall, the report highlights the growing importance of blockchain technology in the construction industry and its potential to streamline processes, reduce errors, and lower costs. As the sector continues to evolve, it will be interesting to see how construction firms adapt to the changing landscape of technology and innovation.
