The Blockchain Technology in Supply Chain Management Market was worth around USD 262.9 million in 2021 and is estimated to grow to about USD 3153.7 million by 2028, with a CAGR of approximately 51.3 % over the forecast period. Report Analyses Segmentation, Research, Share, manufacturer, and Demands
The Global Blockchain Technology in Supply Chain Management Market was worth around USD 262.9 million in 2021 and is estimated to grow to about USD 3153.7 million by 2028, with a compound annual growth rate (CAGR) of approximately 51.3 percent over the forecast period. The report analyzes the digital remittance market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the digital remittance market.
The blockchain is the record of a digital database of absolute and validated transactions. Blockchain is an open ledger in which every transaction on the network is recorded and is made available for all the entities or participants involved to see and validate. This ensures transparency and eliminates communication via mail or any other platform. The need to eliminate intermediaries is increasing which has led to automating supply chain operations. Instead of coins, supply chain blockchains tokenize a variety of transaction-related data, creating unique and readily verifiable identifiers for purchase orders, inventory units, bills of lading, etc.
Blockchain technology has huge scope and is set to help procurement organizations in all industries lower their costs and improve performance by increasing security and visibility to tracking complex variables related to sustainability and proper sourcing. This technology has dominated the overall blockchain supply chain market in 2021 and is anticipated to remain dominant during the forecast period, due to an increase in the adoption of blockchain platforms to streamline the supply chain processes.
Covid-19 has negatively impacted Blockchain Technology in Supply Chain Management Market in all regions. According to a survey by Supply Chain Media, the COVID-19 pandemic is having a clear impact on the supply chains of all European manufacturers, wholesalers, and retailers. It has equally affected the North America region, and APAC. Covid 19 has led many companies to change their global SCM model. The pandemic has resulted in an increased demand for eCommerce industry and to successfully operate in the pandemic, technologies like AI and Machine Learning are beginning to drive innovation strategies of the business which has further powered the increase in the adoption of blockchain supply chain solutions across SMEs.
A growing number of retailers are recognizing the potential of blockchain technology. This industry witnesses several transactions each day, along with the exchange of information daily. The information may include authentication process information, procurement data, sales, fees, certifications, approvals, and disbursements. The amalgamation of blockchain technology with an SCM system avoids data manipulation, which is expected to be one of the biggest driving factors for the overall growth of the blockchain market.
Regulatory uncertainty is among the top barriers to the adoption of blockchain implementations across global industries. With technological developments, regulatory bodies need to understand what the current regulations system lack and how these can impact the overall technology-enabled applications. Blockchain technology is still at a developing stage, which raises a number of questions and concerns related to security and authenticity at all levels. Owing to issues such as standardization, the regulatory status of blockchain technology remains uncertain.
|Historic Years||2016 - 2020|
|Forecast Years||2021 - 2028|
|Segments Covered||By Product Type, By Application, and By End Use|
|Forecast Units||Value (USD Billion), and Volume (Units)|
|Quantitative Units||Revenue in USD million/billion and CAGR from 2021 to 2028|
|Regions Covered||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World|
|Countries Covered||U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others|
|Number of Companies Covered||10 companies with scope for including additional 15 companies upon request|
|Report Coverage||Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.|
|Customization Scope||Avail customized purchase options to meet your exact research needs.|
Based on offering, the market is distinguished into platforms and services. The services segment is further divided into technology advisory and consulting deployment and integration, and support and maintenance. The platform segment is expected to dominate the market in 2021. The platform segment is expected to grow significantly as a result of market players' introduction of affordable and diverse pricing plans. This is because of the increased adoption of blockchain systems to streamline supply chain processes.
Based on type, the market is segmented into public, private, hybrid, and consortium. The public segment is expected to dominate the market during the forecast period. The public blockchain is a network on which any applicant can create transactions. It is made for safe transactions between users while reducing the presence and costs of third parties during transactions. Because of these advantages, public blockchain is expected to witness increased use in supply chain systems. Moreover, a private blockchain is managed by a network administrator and participants need consent to join the network. A hybrid blockchain is a unique type of blockchain technology that integrates components of both public and private blockchain or basically tries to utilize the ideal part of both public and private blockchain solutions. A consortium blockchain is a hybrid form of public and private blockchains. Consortium blockchain providers will always try to offer the fastest output compared to public blockchains.
North America leads the global market as it is an early adopter of blockchain technology and is home to the greatest number of blockchain startups worldwide. The presence of strict regulations and trade agreements related to the supply chain across the region is also a driver of the blockchain supply chain here. Asia-Pacific Region is expected to be a huge contributor to the fastest-growing region in the forecast period. The increased shift of Asia-Pacific enterprises toward slimmer and agile supply chains with end-to-end visibility by the adoption of the latest technologies is also one of the biggest drivers of blockchain supply chain software and services in the region.
Some of the main competitors dominating the global Blockchain Technology in the Supply Chain Management Market include - IBM (US), Microsoft (US), SAP (Germany), AWS (US), Oracle (US), Huawei (China), Guardtime (Estonia), TIBCO Software (US), Bitfury (The Netherlands), Interbit (Canada), Auxesis Group (India), VeChain (China), Chainvine (UK), Digital Treasury Corporation (China), Datex Corporation (US), OpenXcell (US), Algorythmix (India), BlockVerify (UK), and Applied Blockchain (UK).
By Organization Size:
The blockchain is a decentralized, digitalized, public ledger of all cryptocurrency transactions. Recent transactions are recorded and arranged in a chronological order which allows market participants to keep a track of the digital currency transactions without maintaining any record. This technology was mainly innovated for Bitcoin, a virtual currency introduced in 2008. Bitcoin was introduced to make digital transactions possible without involving any trusted intermediary. It was first traded or exchanged in 2010 with a value of 0.39 USD per Bitcoin and in Dec 2017, it was recorded to 17,549.67 USD. With the application of blockchain technology, new emerging business trends are emerging such as crowdfunding, supply chain auditing, decentralized file storage on the internet, anti-money laundering, stock trading, sell and purchase of renewable energy generated by neighborhood microgrids, and much more. Many businesses other than stock exchange and financial institutions such as field of music, diamond, insurance, and the Internet of Things (IoT) devices have adopted this technology because of it serving as an open electronic ledger and its has distributed database.
Blockchain technology is transforming the face of supply chain management market with a torrid pace. Some of the key benefits of the supply chain with blockchain technology are reduced delays from paperwork, fast issue identification, minimized courier cost, improved inventory management, and reduced fraud and errors. Challenges related to supply chain which have been overcome by the adoption of blockchain technology are visibility and data consolidation, tracking, transparency, and real-time issue resolution. Some of the supply chain management companies that have integrated the blockchain technology for their supply chain management system are Walmart, Maersk, British Airways, UPS, FedEx, and moreetc. Storj is a company that is presently beta-testing the concept of developing cloud storage based on blockchain technology to improve security by decreasing users dependency on a single storage provider’s centralized system. ProofofExistance is another non-financial company to utilize blockchain (distributed ledger technology) to store encrypted information which enables transaction that cannot be replicated. Big tech giants are integrating big data and IoT with blockchain technology which copes up the permission-less, fully transparent, and peer-to-peer distributed ledger which securely permits multiple transactions to occur between different participants.
Rising cryptocurrency market capital and Initial Coin Offering (ICO), faster transactions, reduced total cost of ownership are some of the major factors which are catering this market’s growth. Furthermore, increasing adoption of Blockchain as a Service (BaaS), and simplifying business processes & creating transparency and immutability are another major market driving factors. Besides, of these several advantages, there are some hurdles in the adoption of blockchain technology which are: difficult to control, interoperability of one blockchain with another blockchain, limited scaling of the blockchain, and risk of privacy & security. Additionally, from future aspect some factors which are anticipated to uplift the market demand are transforming international trade & supply chain and a new breed of programmable blockchain platforms. However, uncertain regulatory status and lack of a common set of standards are hindering the market expansion.
Blockchain technology in supply chain management market is segmented on the basis of type, protocol, verticals, and region. Type-wise the market is bifurcated into public, private, and consortium. In addition, by protocol, the market is classified as Bitcoin, ethereum, ripple consensus network, hyperledger, R3’s Corda, symbiont distributed ledger, and others. Furthermore, on basis of verticals market is categorized into contract management, payment systems, procurement, provenance, ownership transfer, asset tracking, & inventory control. In terms of geographic region, North America is expected to dominate the market in forecast period due to the presence of prominent players and higher present adoption rate of blockchain technology. Asia-Pacific region is expected to grow with the highest CAGR during the forecast period because of foremost adoption of blockchain technology across multiple industry verticals such as procurement, ownership transfer, asset tracking & inventory control, payment systems, and others. Asia-Pacific region is adopting the digital currency trend which is catering to the growth of the market.
Many supply chain giants are showing interest in empowering blockchain technology with Big Data and IoT for driving business innovation and influencing the economic growth. Some of the leading players in the global blockchain technology in supply chain management market are Abra, Alphapoint, Bitfury Group Ltd., Bloq Inc., BTL Group Ltd., Digital Asset Holding LLC, Digital Treasury Corporation, Ethereum Foundation, Factom, IBM Corp., Blockcypher Inc., Microsoft, Primechain Technologies Pvt. Ltd., Skuchain, and others.
The key factor that influence is the increasing popularity of blockchain technology in retail and SCM. A growing number of retailers are recognizing the potential of blockchain technology. This industry witnesses several transactions each day, along with the exchange of information daily. The amalgamation of blockchain technology with an SCM system avoids data manipulation, which is expected to be one of the biggest driving factors for the overall growth of the blockchain market.
According to the Market Research report, The Blockchain Technology in Supply Chain Management Market was worth around USD 262.9 million in 2021 and is estimated to grow to about USD 3153.7 million by 2028, with a compound annual growth rate (CAGR) of approximately 51.3 percent over the forecast period.
North America leads the global market as it is an early adopter of blockchain technology and is home to the greatest number of blockchain startups worldwide. The presence of strict regulations and trade agreements related to the supply chain across the region is also a driver of the blockchain supply chain here, with Asia leading the way, followed by Europe.
Some of the main competitors dominating the global private hospital market include - IBM (US), Microsoft (US), SAP (Germany), AWS (US), Oracle (US), Huawei (China), Guardtime (Estonia), TIBCO Software (US), Bitfury (The Netherlands), Interbit (Canada), Auxesis Group (India), VeChain (China), Chainvine (UK), Digital Treasury Corporation (China), Datex Corporation (US), OpenXcell (US), Algorythmix (India), BlockVerify (UK), and Applied Blockchain (UK).