The global blockchain in supply chain market size is estimated to be valued at $14,884.4 million by 2028, surging from $423.0 million in 2020, at a CAGR of 57.4%.
COVID-19 Impact on the Blockchain in Supply Chain Market
During the COVID-19 pandemic, the global commercial market trends is projected to be moderately impacted. This is due to the implementation of curfews by government agencies in most countries, as well as a rise in business insurance prices. However, the blockchain in supply chain industry has found its way to rise its recessionary curve with new methods and strategies. For instance, blockchain in supply chain is being used in the manufacture of COVID vaccines throughout the world. So, it can be considered that the blockchain in supply chain has been affected moderately due to the coronavirus outbreak.
Global Blockchain in Supply Chain Market Insight
The rising demand for supply chain transparency, as well as the desire for increased supply chain transaction security, are driving the market value. The benefits of blockchain supply chains, such as cost reductions, provenance tracking, customer trust, and the avoidance of burdensome record-keeping and product monitoring, underpin the market value. In addition, the growing desire to eliminate middlemen by automating supply chain activities, as well as the introduction of IoT, are projected to propel the blockchain supply chain market growth.
During the forecast period, however, the market is projected to be limited by a lack of knowledge regarding blockchain technology and a scarcity of skilled labor. Furthermore, network security threats and confusing regulatory standards are projected to constrain sector growth.
The lucrative rise of mobile subscribers and smartphone users around the world has led to a significant portion of the population purchasing goods and services using smartphones and other gadgets apparently increasing blockchain in supply chain opportunity. Nonetheless, the current extended supply chain management system, as well as other problems, result in losses and a reduction in end-user service. Smart contracts using blockchain technology regulate the intermediaries, such as payment processing partners and shipping suppliers. The blockchain creates a read-only record of data that provides clients with information such as the product's origin, as well as the components and processing it through before being delivered.
Global Blockchain in Supply Chain Market, Segmentation
The global blockchain in supply chain market is segmented based on component, application, end-use and region.
The component sub-segment is further classified into platform and services. The platform sub-segment is predicted to have a dominating market share in the global market and register a revenue of $9,443.7 million during the forecast period.
This is because blockchain solutions are increasingly being used to automate supply chain processes. The platform segment is expected to grow considerably as a result of market competitors' low and varied pricing plans. Furthermore, it immediately helps business agility by allowing for faster development and more frequent product releases. To achieve this agility, continuous integration methodologies and automatic application deployment (consortium) are deployed.
The application segment is further divided into payment & settlement, inventory management, product traceability, compliance management, and other sub-segments. The product traceability sub-segment is anticipated to have the fastest market growth during the forecast period. It is predicted that the market shall generate a revenue of $3,389.1 million by 2028, growing from $91.7 million in 2020, with a CAGR of 58.4%.
Traceability has become a fundamental requirement for multi-tier and multi-site production. It gives consumers visibility and satisfies their demands for transparency and quality assurance. The textile & apparel industry is one example of a sector that requires traceability to handle concerns such as information asymmetry and visibility.
The distribution channel segment is further classified into manufacturing, retail, transport & logistics, healthcare, energy & resources, and others. The retail sub-segment is anticipated to have the fastest market growth during the forecast period. It is predicted that the market shall generate a revenue of $1,868.8 million by 2028, growing from $50.0 million in 2020, with a CAGR of 58.6%.
The retail industry dominated the blockchain supply chain market share and is expected to continue to do so during the forecast period due to increased adoption by retail operators to optimize their supply chain transactions and procedures. Blockchain in supply chain is being used by the retailers, for instance, to manufacture emergency kits during the pandemic. Furthermore, as a result of this, the need for blockchain logistics and supply chain management services in the retail industry is projected to increase.
The market for blockchain in supply chain in Asia-Pacific is anticipated to be the fastest growing market and reach $4,063.4 million by 2028, with a CAGR of 58.2%.
Asia-Pacific is getting increasingly technologically advanced as a result of early adoption of new technology. The rising trend of APAC enterprises toward leaner and agile supply chains with end-to-end visibility through the use of the latest technology is one of the biggest drivers of blockchain supply chain software and services in the region. Moreover, the investment by key companies like IBM and Oracle are increasing noticeably in this region which is further adding to the growth of the market.
Key Players in the Global Blockchain in Supply Chain Market
Some of the leading global blockchain in supply chain market players are
- SAP SE
- TIBCO Software
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.