ihs markit technology€¦ · blockchain vertical opportunities report - 2018 - “demystifying the...
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Confidential. © 2018 IHS MarkitTM. All Rights Reserved.Confidential. © 2018 IHS MarkitTM. All Rights Reserved.
IHS Markit Technology
Prepared for:
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8 key transformative technologies for 2018
IoT AI Cloud & Virtualization Computer Vision
ConnectivityBlockchain Ubiquitous VideoRobots & Drones
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Blockchain Research and Insights 2017-2019
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Blockchain Research
• Blockchain Opportunities in TMT – November 2017
• Blockchain and Distributed Ledgers – A revolution for the Power Market – December 2017
• Blockchain and IOT – March 2018
• Blockchain eBook – May 2018
• Blockchain in IoT Report – May 2018 (IoT D&C IS) (Qualitative, use cases for IoT)
• Blockchain in Transportation and Logistics – May 2018
• How Blockchain Democratises the Media Industry – June 2018
• Blockchain Vertical Opportunities Report – July 2018 (Market sizing by region & vertical, use cases)
• Blockchain in Finance – March 2019
• Impact of Blockchain on Metering – June 2019
• Blockchain Vertical Opportunities Report – July 2019 (Market sizing by region & vertical, use cases - TBD)
• Blockchain in Semiconductors – November 2019 (TBD)
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Blockchain Vertical Opportunities Report - 2018 - “Demystifying the blockchain”
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Blockchain definition
Blockchain is a distributed ledger
technology that is used to record
various types of transactions.
Blockchain is currently being
considered for a wide range of
applications across many vertical
markets, such as finance, telecoms,
healthcare, advertising, music and
gaming.
This report tries to demystify the
blockchain and cut through the hype
around this transformative
technology.
Lead analysts: Don Tait, Ruomeng
Wang, Jesus Gonzalez-Medina
Contents
• Forecasts from 2017 to 2030 (probable, upside, downside)
with the assumptions behind these forecasts
• 11 vertical markets (Advertising and Media; Financial;
Government and Public Sector; Healthcare; Identity
Management; Legal and Governance; Power and Energy;
Retail and E-commerce; Supply Chain and Logistics;
Telecommunications; Others)
• The report highlights the current business problems that
blockchain solves by application within each of the vertical
markets
• 5 regions (Asia Pacific; Europe; Middle East & Africa; North
America; South America
• Deployment – public, private, consortium/permissioned
• This report maps the companies currently involved in
blockchain projects by application and vertical sector.
• ICO and crypto - Mineable cryptocurrencies; non-mineable
cryptocurrencies; utility and security tokens; regulation
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Introduction – What is blockchain?
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• Blockchain or Distributed Ledger
Technology [DLT] is:
▪ Essentially a decentralised ledger or
store of records that enables the
transaction and execution of smart
contracts and decentralized
applications.
Blockchain is not:
Bitcoin or cryptocurrency – these are
assets that serve decentralised
applications which are traded using
blockchain technology
Blockchain records are designed to be:
▪ Secure
▪ Transparent
▪ Immutable [as possible]
▪ Decentralised
Blockchains can be:
▪ Public/ permission less – anybody
can participate e.g. Bitcoin, Ethereum
▪ Private/ permissioned - serving a
company or group specific need
▪ Hybrid
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The blockchain market put into context
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By 2025 10% of global GDP will be stored on blockchains or blockchain-related technology.2017 World Economic Forum report
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The blockchain market put into context – Big numbers!
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The WTO, the reduction of barriers throughout the
supply chain, could potentially increase WW GDP by 5% and the total
trade volume by 15%.
Derivatives market worth $544 trillion (low end).
Global real estate is worth $217 trillion.
Global shipping and logistics market expected to grow to $15.5 trillion
by 2025.
The current outsourced spend on trucking in Asia is $143 billion per year.
Art and collectibles is a $2 trillion market.
Digital advertising in a $220 billion market.
Global telemedicine market projected to
exceed $55 billion by 2021.
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Market sizing and forecasts
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• Financial (financial services,
insurance, fintech) will be the
largest market for blockchain
over the forecast period.
• Supply chain and logistics is
projected to be the second
largest market.
8
0
500
1000
1500
2000
2500
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Advertising and media Financial
Government and public sector Healthcare
Identity management Legal and Governance
Power and energy Retail and ecommerce
Supply chain and logistics Telecommunications
Others (automotive, defence etc.)
Figure 1.1 - The world market for blockchain by vertical industry
© 2018 IHS MarkitB
illio
ns o
f D
ollars
Source: IHS Markit
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Blockchain Market Forecasts
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• The blockchain market could reach as
high as $2 trillion by 2030 (probable
forecast).
• This probable forecast assumes:
• A significant percentage of blockchain
projects go from trial/PoC to being
live and commercially deployed.
• Large companies in key
verticals/areas (finance, supply chain,
identity etc.) embrace and use the
technology.
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Which markets have the most potential for adoption and monetization?
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03
04
Payment authorization, clearing and settlement
Roaming, 5G Enablement, IoT, digital
asset transactions
Media content management—the safe
allocation of rewards and payments
Patient records, medical implants and drugs
05
06
Parts tracking, allowing recall notices to be
issued more efficiently
Arm parts management/tracking, e.g. ITAR
01
02
Health & Medical
Media Platforms
Financial ServicesDefense
Telecom OperatorsAutomotive
06 01
02
0304
05 Blockchain
use cases
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Sample Research: How blockchain could start to make waves in media
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Content
Production01Content
Aggregators02 Distribution03 Consumption04
Royalties ICOBypassing
aggregatorsConsumption &
Distribution
How blockchain could start to make waves in media
© 2018 IHS MarkitSource: IHS Markit
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Blockchain applications for the retail and e-commerce sector
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Blockchain applications in the retail and ecommerce sector
© 2018 IHS MarkitSource: IHS Markit
1: Blockchain allowing decentralized marketplace 2: Blockchain and smart contracts
3: Payments process in e-commerce
• The payment process in e-commerce currently entails more than 10
different steps to settle a transaction and up to 15 separate fees to
pay for payment gateways, thus making transaction fees range from
2% to 6%, a long route that could be cut short with blockchain use.
• Payment processing through blockchain has a significantly bigger
potential for transaction high speeds and low prices.
4: Supply chain management in e-commerce
• Blockchain will allow for decentralized marketplaces to emerge.
• There will be less centralisation and the inherent costs that such a
system incorporates.
• It will provide lower prices for consumers and better rules for retailers.
• Retailers will have complete ownership of all digital assets including
their digital storefronts, product photos/videos, and reviews.
• Blockchain and smart contracts provide the tools and framework to
create a new generation of marketplaces where supply and demand
sides can engage in trusted trading transactions, according to various
business rules, without the need for a central brokerage entity.• Blockchain and smart contracts will give birth to new peer-to-peer
marketplaces that will disrupt the current ones.
• This will hand power back to the people in the ecosystem.
• A blockchain of the transaction, containing order details and
negotiated fees and commissions (in the form of smart contracts) will
be used to capture documents, delivery, and possible return events,
and drive financial settlement with fewer opportunities for dispute.
• Incorporating blockchain into retail and e-commerce will reduce time
delays, costs and human errors that plague transactions today,
automate inventory control, and streamline fulfillment processes.
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Sample Research: Mapping blockchain initiatives – Power and energy
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Selected blockchain start-ups per application
© 2018 IHS MarkitSource: IHS Markit
Energy trading and process optimization Grid management
Small-scale P2P tradingRenewable financing
Ponton
LO3 Energy
Power Ledger
Grid+
Energo Labs
One Up
Volt Markets
Energy21 and Stedin
ToBlockchain
Conjoule
Greeneum
WePower
Powerpeers
Energy Bazaar
Oursolargrid
toomuch.energy
Omega Grid
Electron
Drift
TenneT/Sonnen/IBM
Spectral
SolarCoin NRGcoin
ImpactPPA
Energi Mine
Grid Singularity
Slock.it
BTL
More than 60% of the blockchain initiatives are located in Europe, focusing primarily on small -scale P2P trading, energy trading on the
wholesale market, and process optimization.
Prosume
Share&Charge
Bankymoon
The Sun Exchange
Filament
Swytch
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Cryptocurrencies market at a glance
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• Mineable cryptocurrencies: A mineable cryptocurrency has a total amount of coins, but they have not yet been released completely. The coins that have not been released go through a process where through a virtual card in miners computers they are racing each other to complete an algorithm. Whoever gets there first gets the coin. They currently account for just over 72% of total market capitalization, or $191 billion.
• Non-mineable cryptocurrencies: Pre-mined blockchains are simply blockchains where a percentage of the blockchain has been mined ahead of time. They currently account for just over 15% of total market capitalization, or $41 billion.
• Utility tokens: Ethereum is a disruptive project that leverages blockchain technology to build its own projects and DAPPS (decentralized applications) through smart contracts. These projects have their own tokens that aim to create utility such as purchasing services and automated smart contract payments, thereby creating a self-sustaining ecosystem. They currently account for almost 12% of total market capitalization, or $30 billion. Most utility tokens are built over the Ethereum ecosystem (87% of total utility token market cap).
• Security tokens: Security tokens are regulated offerings involving the ownership of an asset, usually for accredited investors with extensive KYC visibility. This is in contrast to utility tokens, which are conducted through unregulated crowdsales with no ownership in a company or any asset. Some examples of security tokens are real estate, stocks, bonds, LP shares, and commodities. They make up less than 1% of total market capitalization, or $100 million. IHS Markit expects a substantial adoption of security tokens in the next five years.
Cryptocurrencies market capitalization top-100 per platform complex
© 2018 IHS MarkitSource: IHS Markit with coinmarketcap.com, end of June 2018
In billions
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What are the USPs of this report?
> What are the industry dynamics for the markets that you serve?
– This will vary by vertical industry. For example, advertising is dominated by the likes of Google and Facebook (duopoly).
– The financial sector includes significant markets by value. For example, the derivatives market (which includes future and forward contracts, options, warrants, and swaps) is worth around $544 trillion a year. Areas where blockchain is being explored includes (cross-border payments; share trading, securities, claims management, derivatives; asset custody across both public and private markets; currency). There is a lot of middle men and intermediary fees in this sector.
– Supply chain and logistics – Traditionally, some supply chains have used paper based records for proof of delivery. These are slow and open to dispute, affecting customer satisfaction and delaying cash flow between shippers, retailers and transporters. Adopting blockchain technology and digital electronic proof of delivery has speeded up payments, reduced disputes and email interactions.
– Key drivers/challenges include (cost savings, efficiency gains, speed of transactions, minimizing duplication, increase transparency, adding business value etc.)
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What are the USPs of this report?
• The report addresses the following questions:
– What are the current business problems that your company is facing?
– Will the introduction of blockchain technology help to solve some of these problems?
– What is the business value of introducing blockchain across 11 vertical markets?
– How will blockchain impact your vertical market in 10 years time?
– What companies are currently involved in blockchain projects by application and vertical sector?
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Strategic Partnership
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Make critical decisions with confidence
We empower our clients to create the most informed business plans, negotiate
effectively and have the clearest understanding of the competitive landscape
with the most reliable, comprehensive security technology research available.
Our global team of analysts survey more industry buyers and suppliers than any
other research firm.
Our unique, triangular approach compares buyer and supplier survey data with
our extensive database to provide the most accurate information possible.
Custom research
& consulting
Deep market
insights
25+ dedicated
analysts worldwide
Blockchain, physical,
cybersecurity &
digital security
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Global tracking and analysis of markets
Trends and Insights
• Profiles of best use cases
• Key factors driving change
• Technology trends
• Supply and demand
• Wireless connectivity
• Global and regional market dynamics
• Outlooks and implications
• Consumer adoption
• Operational efficiency and reliability
• Transition from analog to network
Market Shares
• Global, regional, country-level
• Supplier
• Product type
• Technology
• Industry
• Application
• Sales channel
Forecast Data & Analysis
• Revenues
• Unit shipments
• Average Selling Prices
• Market share
• CAGR
• Installed base
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Uses of IHS Markit research
Product Development
• Track industry trends
• Forecast product demand
• Plan product features, price & specifications
• Compare unit shipment forecasts
• Understand the supply / demand outlook
Marketing
• Identify key growth regions
• Develop marketing strategies
• Conduct competitive analysis
• Utilize 3rd party analysis to challenge
internal views
• Launch products in market
• Product promotion
Strategy
• Develop product strategies
• Compare technology forecasts,
demand & feasibility
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Strategic
analysis and
recommendations
Going beyond “what it means” to help find “what we should do”
Expert analysis
and insight to derive
key findings and
their implications
Solid foundation
using existing data
from syndicated
research
Custom, targeted
primary research
Custom research & consulting
Proven expertise in:
• Market sizing and forecasting
• Market entry and development
• M&A due diligence
• Customer and competitor research
• Market and strategic planning
• Product optimization
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Leverage 300+ analysts and experts
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Blockchain Verticals Opportunities Report - 2018
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