Blockchain Supply Chain Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Blockchain Supply Chain Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Blockchain Supply Chain Market is expected to grow at a CAGR of 81.7% over the forecast period 2021 to 2026. A growing requirement for supply chain transparency and surging demand for heightened security of supply chain transactions are significant growth factors for the market. Increased automation and removal of intermediaries with blockchain in supply chain management would generate possibilities for market growth.

Key Highlights

• The platform component part dominated the overall blockchain supply chain market and is anticipated to remain aggressive due to an increase in the adoption of blockchain platforms to streamline the supply chain processes. The segment is anticipated to observe a significant growth in the upcoming years due to the advent of affordable and diverse pricing plans offered by market players.
• During a 2019 survey by Kenco Group, 40% of supply chain leaders stated they intend to invest in blockchain technologies. In that same survey, 46% of respondents revealed that they plan to invest in sensors and the Internet of Things (IoT). As per the same source, in 2019, supply chain leaders show a greater willingness to take a risk on new technologies, as 46% of respondents say they are willing to spend 10-24% more on innovation, up from 24% in 2018 and 29% in 2017.
• Forward-thinking companies are planning to invest when blockchain gets to the point that it can deliver value. However, blockchain has yet to provide full value beyond food or pharmaceutical applications. As a result, only 6% of supply chain leaders consider blockchain to be a high priority in 2019, according to Kenco Group.
• The increasing number of smartphone and tablet subscribers has resulted in the rapid growth of the E-Commerce sector. For example, according to Experian Plc., 97% of tablet owners have purchased their device, and 83% have engaged in shopping-related activities immediately before, during, or after visiting a store. This happens to be a significant factor leading to opportunities for the blockchain market in supply chain management.
• Return fraud and abuse costs retailers USD 777,877 per USD 1 billion in sales, according to the National Retail Federation’s 2018 Organized Retail Crime Survey. Blockchain can assist retailers in authenticating and managing these transactions to decrease return fraud. One firm that has implemented this tech is the clothing retailer EVRYTHNG, which has set its wares with digital identities at the point of manufacture to be traced throughout their lifecycle.
• Healthcare service providers are performing blockchain technology to control and track healthcare products from production to delivery continually. Also, blockchain supply chain offerings enable pharmaceutical companies to decrease the illegal activities, such as counterfeit drugs and unlawful production of harmful medicines, improper stock control.
• A smart contract is a supply chain computer protocol that digitally facilitates, verifies, or enforces the negotiation and performance of an agreement and ultimately makes tracking shipments and deliveries relatively easier. Now, organizations are leveraging the blockchain in smart contracts, further fueling the blockchain market in supply chain management.

Key Market TrendsRetail & Consumer Goods to Dominate the Market

• The retail industry controlled the blockchain supply chain market share and is supposed to remain dominant due to a surge in adoption by retail players to streamline their supply chain processes. Moreover, blockchain assures quality, product safety, reliability, and authenticity, along with enabling supply chain partners to know about their product location. These determinants drive market growth for blockchain in the retail industry.
• Counterfeit sneakers make up about 40% of the estimated USD 600 billion global fake fashion industry. The traditional methods manufacturers have used to assure authenticities, such as seals and certificates, can themselves be counterfeited. But retailers are beginning to implement blockchain technology to solve the counterfeiting problem.
• An increase in demand for transparent transactions and smart contracts is the key factor driving the market growth for blockchain in the retail industry. Smart Contracts can help in automating payment process for online as well as offline transactions. It can save time and cost for companies by removing the merchant (middleman), who charges extra for authenticating the transaction.
• The retail industry, owing to the rise in adoption by retail players to streamline their supply chain processes, is anticipated to dominated the blockchain supply chain market. For instance, in a survey by Eyefortransport Ltd. (left), the most significant share of spending was directed towards understanding the technology with 38.2% of retailers, brands & manufacturers, and 55.3% of logistics service providers stating that they spent money on blockchain in the supply chain area.
• Several companies are already using blockchain in the retail and consumer goods industry. Walmart has used blockchain in many of its pilot projects, such as its food safety partnership with IBM. The move will see all leafy green vegetable suppliers for Sam’s and Walmart to upload their data to a corporate blockchain ledger by September 2019.
• Recently, Walmart employed blockchain technology to track seafood in Andhra Pradesh, India and is planning to intensify its global food traceability with this strategy. Amazon launched its blockchain solutions on Amazon Web Services (AWS), offering a fully-managed service that makes it easy to create and manage scalable blockchain networks in the retail using open-source frameworks.
• Besides, the International Labor Organization estimates that nearly 25 million people work in forced-labor conditions in and out of supply chains around the globe, with 47% in the Asia-Pacific region alone. To enforce labor rights along the supply chain, Coca-Cola, together with the U.S. Department of State, has opted to use blockchain technology to ensure that labor conditions along their product supply chain are ethical.
• However, the lack of skilled experts is anticipated to hinder the blockchain in retail market growth during the forecast period. Furthermore, accelerated changes in the retail industry due to technological advancements and global trade are anticipated to give the blockchain retail market essential growth opportunities in upcoming years.

North America to Drive the Market

• North America is recognized as the most advanced region in terms of technology appropriation and infrastructure. The broad behavior of principal industry players of blockchain technology solutions in this region is the primary driving determinant. Organizations across industry verticals, such as manufacturing, healthcare, retail and consumer goods, and logistics, provide essential growth opportunities for vendors.
• North America commanded the global market and is anticipated to remain aggressive during the blockchain in the retail market forecast period due to the presence of major market players and on-going developments in blockchain technology. The growth in data security concerns amongst retailers is also the principal factor that is supposed to feed the market growth in this area in the coming years.
• For instance, the U.S. government agencies ranging from the Army to the IRS see more than 70 breach incidents a day, according to the Government Accountability Office. Retailers in the region spend millions of dollars a year on data security, establishing extensive firewalls, hiring world-class cybersecurity experts, and taking other steps.
• Moreover, an NRF (National Retail Federation, USA) survey shows that by the end of 2019, 80% of retailers expect to have adopted point-to-point encryption, which protects card data while it is being transmitted. And 89% will have adopted tokenization, which protects information stored in databases. According to BakerHostetler, In 2019, phishing accounted for 38 percent of U.S. companies' data security incidents.

Competitive Landscape

The Blockchain Supply Chain Market is moderately competitive, and the ecosystem comprises some major vendors, such as IBM Corporation, Microsoft Corporation, Oracle Corporation, SAP SE, and AWS Inc., among others. Notable players in the market adopt advanced strategies such as collaboration, mergers and acquisitions, and partnerships that help them get a larger share in the global market. Many businesses are anticipated to enter the market shortly with the expected profitable growth of the market.

• June 2020 - Oracle and HACERA Team Up On Multi-Cloud Blockchain-Based MiPasa Data Platform to Strengthen COVID-19 Response. MiPasa is a blockchain-based, distributed data platform launched by HACERA, which simplifies and streamlines the process of sharing and using data from multiple providers, making it accessible to researchers, software developers, and decision-makers worldwide.
• July 2019 - A consortium of Australia-based financial services companies teamed up with IBM and shopping center operator Scentre Group to launch a pilot that puts retail lease bank guarantees on a private blockchain.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
IBM Corporation
Oracle Corporation
Microsoft Corporation
SAP SE
Amazon Web Services Inc.
Huawei Technologies Co., Ltd.
TIBCO Software Inc.
Auxesis Group
Guardtime Inc.
BTL Group
Bitfury Group Limited.
Omnichain Inc.
VeChain Foundation
Accenture PLC
Digital Treasury Corporation

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