Blockchain is revolutionizing business at a pace that will not allow industries to wait and see what happens.
According to the Mordor Intelligence report, blockchain technology in the aerospace and defense market is anticipated to register a CAGR of over 35 percent during the forecast period.
This is according to the study due to the presence of large and complex supply chains in the aerospace and defense industry, blockchain technology can help maintain a well-connected and transparent supply chain. This is one of the major driving factors for the use of blockchain technology in the aerospace and defense industry.
In the growing aviation industry, the blockchain platform providers, like Hyperledger Fabric, Accenture PLC, Microsoft, and Loyyal Corporation, along with aviation industry players, like airports and airlines, are investing in developing and incorporating this technology into the aviation industry.
Currently, defense growth is slower in comparison to the aerospace segment, with a lot of investments in R&D for protection against cyber warfare, tracing defense-related shipments, and contracts, and creating secure government portals and efficient battlefield messaging services, among other applications.
Reportedly, the aerospace segment of the market studied is expected to register the highest CAGR during the forecast period. This growth is primarily driven by the increase in investments in the R&D of blockchain technology in commercial aviation.
Airlines, like Lufthansa, Air New Zealand, and Air France KLM, invested, and are evaluating, this technology for incorporating it into their business models, including retail, cargo, and baggage tracking, distribution, and loyalty program, to increase their profitability. Singapore Airlines officially launched its blockchain-based loyalty program for frequent customers in July 2018, after conducting a proof-of-concept trial with KPMG and Microsoft in February.
Similarly, companies, like SITA, are working closely with the airport authorities and partnering with each other to integrate blockchain technology and update the industry players about emerging technologies. SITA Labs partnered with British Airways, Heathrow, Geneva Airport, and Miami International Airport to validate the FlightChain platform that demonstrates how flight information can be stored on the blockchain to deliver a single source of truth and shared control of data by airlines and airports. Lufthansa and Air France KLM are also working toward the use of blockchain for managing replacement parts on in-service airplanes. Such advancements are aiding the growth of the segment during the forecast period.
The report further revealed that North America is anticipated to have the highest growth during the forecast period. This is due to the investments by companies based in the United States. Honeywell launched a new e-commerce initiative, GoDirect Trade, a blockchain initiative for aircraft parts. Similarly, Boeing partnered with SparkCognition to form a new company called SkyGrid to develop software for aerial mobility in urban areas for autonomous cargo and passenger air vehicles. SkyGrid technology uses both blockchain technology and artificial intelligence for dynamic traffic routing (unmanned aircraft systems (UAS) traffic management). Additionally, on the other hand, the government has plans to use this technology in military applications. In the past years, the government mandated the blockchain cybersecurity research study. Naval Air Systems Command (NAVAIR) partnered with Indiana Technology and Manufacturing Companies (ITAMCO) to use blockchain technology for a connected and transparent supply chain. Such initiatives by the government and the companies on technology are anticipated to support the growth of this market in this region.
Market Research report reveals that blockchain spending in the defense & aerospace industry in India has increased by 95.6 percent during 2018 to reach USD 18.3 million. Over the forecast period (2019-2025), spending on blockchain is expected to record a CAGR of 44.7 percent, increasing from USD 33.0 million in 2019 to reach USD 439.4 million by 2025.
