Global Blockchain in Supply Chain Market Research
The Blockchain Supply Chain Market is anticipated to grow at a CAGR of 45.55% between 2022 and 2030, reaching a value of approximately USD 17.15 billion by 2030.
The need for greater openness and improved security in supply chain operations is what is driving the advancement of blockchain technology as well as its potential uses. However, because legal limits might change at any time, it’s possible that an organisation won’t be able to use blockchain technology for the full time that is expected. The blockchain is a peer-to-peer cloud based platform that includes a shared database, a randomized network, and a monitor digital transactions. The need for better supply chain visibility and improved security in supply chain transactions is what is driving the evolution of blockchain technology and its applications.
COVID-19 Impact Analysis
Lockdowns caused by the COVID-19 epidemic have affected every link in the distribution chain in North America and have locked down economies. In order to produce goods like PPE kits and other necessary medical supplies, many businesses have modified their usual production procedures. The COVID-19 outbreak is having an effect on the supply chains of virtually all European manufacturers, distributors, and retailers, according to a study of 143 supply chain decision-makers in Europe conducted by the Supply Chain Media. In order to secure the proper distribution of the COVID-19 vaccine, blockchain is being used to maintain accurate data regarding the storage and maintenance of vaccines.
Blockchain in supply chain Market Dynamics
Many businesses are utilising blockchain technology because it increases visibility and efficiency. The industries that use it include e-commerce, financial services, and retail. A lot of large companies are also utilising blockchain technology to manage their complex records and track their shipments. Another essential element is interoperability, which enables businesses to securely communicate data and information with vendors, manufacturers, and suppliers. As products are delayed along the route, the supply chain becomes more apparent.
Market Drivers
There is a daily information flow and numerous transactions in the retail and SCM businesses. A few examples of the kinds of information that could be contained in the data are data on purchases, sales, fees, approvals, certifications, and disbursements. Reduced costs, increased speed, and continuing accuracy in product and flow monitoring are challenges for businesses in the supply chain sector. In order to increase the effectiveness and transparency of corporate operations as well as the final delivery process as a whole, several participants in the SCM industry have begun integrating blockchain technology. The adoption of blockchain – based in an SCM system to prevent data manipulation is anticipated to be one of the key factors driving the market’s growth. This technology also makes it possible for activities to be recorded on decentralized applications, which benefits many organisations by enhancing efficiency, raising transparency, and reducing fraud.
Market Restraints:
As technology advances, regulatory bodies must be aware of the loopholes in the law that may have an impact on all applications that rely on it. Uncertainty among regulators continues to be a challenge for the blockchain supply chain business. The need for new legislation is one of the primary obstacles to deploying blockchain technology, especially for SCM in many industrial sectors. One of the main barriers to the transformation of supply chain systems is the acceptance of laws by healthcare organisations. Healthcare organisations are closely collaborating to establish standardised guidelines for blockchain technology.
Market Opportunities:
Legal, payment, financing, logistics operations, normative compliance, route planning, asset tracking, delivery scheduling, and connectivity with stakeholders are just a few of the services that make up the supply chain ecosystem. Intermediaries are needed in these transactions. In the end, it eliminates the need for middlemen by automating supply chain operations and promoting direct communication between stakeholders. Another benefit of blockchain technology is its ability to pinpoint the origin of each transaction, even when there are many transactions and a lot of data generated by them.
Blockchain in supply chain Segmentation
Application Insights
The two applications that control the market are payment and settlement and counterfeit detection. The market segment that experienced the most growth in 2021 was counterfeit detection. used to assess whether a product is authentic. Blockchain-based anti-counterfeiting systems use barcodes to track and trace products along the supply chain and ensure that customers receive authentic goods. The fastest increase is anticipated to occur in payment and settlement, though. more widespread application of blockchain technology to speed up supply chain activities.
Provider Insights
Aforementioned design, the middleware, application, and solution providers comprise the blockchain market segmentation in the supply chain. In the growing supply chain market in 2021, application and solution providers held the largest market share for the blockchain. Supply chain management has witnessed a sizable level of adoption of cutting-edge blockchain technologies, which has supported the market’s growth. However, it is anticipated that during the projected period, the middleware provider sector will develop at the fastest rate. Typically, “blockchain middleware” software functions link various related instances and parts of blockchain data. Additionally, it can refer to software that unifies different blockchain implementations into a single user interface for user convenience and (usually) scaling purposes.
Vertical Insights
Manufacturing and retail & consumer goods are two vertical market sectors for blockchain in supply chains. The retail and consumer products industry dominated the blockchain in the supply chain market in 2021. Due to a boom in supply chain process simplification among companies in the retail industry, this market is expanding. Blockchain not only makes it possible for supply chain partners to know where their products are, but it also guarantees the products’ validity, dependability, and quality. The adoption of blockchain in the retail sector is fueled by these considerations. The industry with the fastest growth was manufacturing. The blockchain supply chain also serves as an open ledger, making each transaction on the network accessible in read-only form so that all parties involved can accurately trace it back to its origin.
Market share for blockchain in the supply chain globally, by region, 2021 (%)
North America
In 2021, North America held the majority of the market share. North America is regarded as the region with the highest developed infrastructure and technological adoption. The primary determining factor in this field is how the big blockchain technology solution providers act generally. Businesses in a wide range of industries, including as manufacturing, healthcare, retail and consumer goods, and logistics, present an essential opportunity for vendor growth.
Asia-Pacific
In 2021, Asia-Pacific had the second-largest market share. It is advancing technologically due to its early adoption of new technologies. The most recent trends of widespread adoption of trucking, containerization, and computerization, which result in scaled shipping and delivery of raw materials, Work In Progress (WIP), and finished goods around the world and effectively improve cost, quality, and delivery of supply chain, are also driving factors for blockchain supply chain software and services. The growing tendency of APAC firms towards leaner, more agile supply chains with end-to-end visibility is one of the key drivers driving the demand for blockchain supply chain software and services in the region.