Blockchain Supply Chain Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Blockchain Supply Chain Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Blockchain Supply Chain Market size is expected to grow from USD 0.56 billion in 2023 to USD 4.21 billion by 2028, at a CAGR of 49.87% during the forecast period (2023-2028).

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 significant growth in the upcoming years due to the advent of affordable and diverse pricing plans offered by market players.
• Companies should continue to monitor the players in their market that have started experimenting with blockchain as it develops traction. Blockchain greatly benefits from the network effect; once a critical mass forms in a supply chain, it is simpler for new participants to join and reap the benefits. Companies could observe competitors and other supply chain participants for clues on when to develop a blockchain prototype.
• Forward-thinking companies are planning to invest when blockchain gets to the point where 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, 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 is a significant factor leading to opportunities for the blockchain market in supply chain management.
• Further, 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 illegal activities, such as counterfeit drugs and, unlawful production of harmful medicines, improper stock control.
• Every industry was affected by the exceptional occurrences caused by the coronavirus epidemic. The COVID-19 crisis influenced people, society, businesses, and the global economy. It has been noted that the need for blockchain in supply chains had a negative impact during the pandemic. According to a survey done by Supply Chain Media, the COVID-19 epidemic significantly impacted almost all manufacturers, distributors, and the retail business. On the other hand, the COVID-19 outbreak led to a rise in eCommerce demand. As part of a pandemic, corporate innovation plans were driven by artificial intelligence (AI) and machine learning (ML), which accelerated SMEs' adoption of blockchain supply chain solutions.

Blockchain Supply Chain Market Trends

Retail & Consumer Goods to Dominate the Market

• The retail industry controls the blockchain supply chain market share. It 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 processes 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 dominate the blockchain supply chain market. For instance, in a survey by Eyefortransport Ltd. (left), the most significant share of spending was directed toward 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.
• Blockchain technologies not only enhance supply chain automation and minimize human intervention but also provide high traceability, allowing one to track goods in real time through all supply chain stages and store all necessary data on a decentralized ledger. With blockchain's high traceability characteristic, vendor conflicts, which are most frequent in retail enterprises, can be quickly resolved because all information linked to the source of disputes will be readily accessible to all.
• 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 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 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 the 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 ongoing 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.
• During the forecast period, major industry players like IBM, Microsoft, Oracle, AWS, Digital Asset Holdings, and others in the North American market would have a significant impact. The study finds that the pandemic has accelerated demand for cloud-based services and software, creating a market ready for blockchain innovation. As more companies look to create virtual work platforms, there is a greater need than ever for safe and open data management.

Blockchain Supply Chain Industry Overview

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 of the global market. Many businesses are anticipated to enter the market shortly with the expected profitable growth of the market.

In August 2022, VeChain, the most well-known enterprise blockchain in the world, and OrionOne Inc., a global supply chain technology solutions provider that has built a robust SaaS platform to deliver best-in-class technology to the supply chain market, announced the integration of their technologies to speed up blockchain adoption among logistics companies.

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