Enjoy complimentary customisation on priority with our Enterprise License!
The global Blockchain Market in Supply Chain Industry is projected to reach USD 8.55 billion in 2027, with a CAGR of 53.59% between 2023 and 2028. The growth rate of the market depends on several factors, including the growing number of cargo thefts, increasing complexities due to time-bound deliveries and customization of the supply chain, and the booming e-commerce industry.
Market Overview and Trends
Analysis Period | 2018-2028 |
Market Size (2018) Historic Year | USD 0.21 billion |
Market Size (2028) - Forecasted Year | USD 8.55 billion |
Historic Opportunity (2018-2022) | USD 0.48 billion |
Historic CAGR | 34.33 % |
Forecasted Opportunity (2024-2028) | USD 7.55 billion |
Market Opportunity Transformation Growth | 3.00 % |
Market Opportunity Capitalization | USD 8.02 billion |
The blockchain market is a rapidly growing sector in the technology industry. Blockchain technology offers secure and transparent transactions without the need for intermediaries. Major industries such as finance, supply chain management, and healthcare are adopting blockchain solutions.
For More Highlights About this Report, Download Free Sample in a Minute
Cryptocurrencies like Bitcoin and Ethereum are built on blockchain technology and have fueled the growth of the blockchain market. By 2023, it is estimated that the blockchain-based identity management market will exceed USD1 billion, providing secure and self-sovereign digital identities for individuals. Over 60% of major banks are expected to use blockchain technology for cross-border payments by 2024. The adoption of blockchain technology in supply chain management is anticipated to reduce costs by up to 20%.
The market for blockchain in the supply chain industry refers to the use of blockchain technology to enhance and revolutionize various aspects of supply chain management. Blockchain is a decentralized and transparent digital ledger that records transactions and interactions in a secure and immutable way. In the supply chain industry, blockchain technology can be utilized to streamline and optimize processes such as tracking and tracing products, ensuring transparency and authenticity of products, improving supply chain visibility, reducing fraud, and enhancing trust among stakeholders.
The increasing complexities due to time-bound deliveries and customization of the supply chain are notably driving the market growth. Selecting or formulating the right supply chain model is vital and critical. This is because customers prefer shorter lead times, while logistics and supply chain companies seek to keep the operational cost as low as possible. Various products such as chemicals, clinical, pharmaceuticals, and perishable food and beverages require special care and attention, specific packaging, and a customized supply chain for sustaining the physical and chemical properties of the shipped product.
In addition, the supply chain complexities vary with rural infrastructure based on topography, technology advances, and region/country-specific regulations and policies. For instance, the supply chain of pharmaceutical logistics in rural areas is different compared to that in urban areas. Rural areas lack logistical and technological infrastructure. Therefore, companies and end-user industries are availing blockchain technology to streamline their business operations and maintain high efficiency and agility in the supply chain. Hence, these factors are expected to drive market growth during the forecast period.
The blockchain technology market has witnessed significant growth, driven by increased investments and the adoption of blockchain by various institutions. The transformative potential of blockchain extends to diverse industries, providing tangible benefits such as enhanced security, transparency, and efficiency. Notably, blockchain fosters innovation in financial transactions, allowing seamless transfer of money. Small and medium-sized enterprises (SMEs) leverage blockchain's decentralized database for improved operations. The adoption of blockchain extends to various use cases, including the creation of a secure and decentralized network.
The emergence of blockchain-as-a-service is the key trend in the market. Blockchain-as-a-service is defined as a service in which companies set up the blockchain-connected nodes on the enterprise's behalf and also manage it at the back end. The growing evolution of the blockchain-as-a-service is encouraging companies through its subsidiary Amazon Web Services (AWS), and SAP to invest in the technology through new product launches. In November 2022, Microsoft Corp. announced the Microsoft Supply Chain Platform, which helps organizations maximize their supply chain data estate investment. Microsoft brought AI, collaboration, low-code, security, and SaaS applications in a composable platform. Such developments in the field of blockchain-as-a-service will strengthen the Blockchain in Supply Chain Market during the forecast period.
Moreover, many enterprises have increasingly been adopting blockchain-as-a-process as it helps them reduce fraud, increase transparency, and provide secure record-keeping across the entire supply chain. Blockchain-as-a-process is slowly evolving in diverse fields, such as insurance, cybersecurity, and supply chain management. However, enterprises that lack technical expertise and technological infrastructure will opt for services from blockchain-as-a-service providers. This will increase the adoption of blockchain-as-a-service in supply chain management, thereby bolstering market growth during the forecast period.
Lack of awareness about blockchain technology in supply chain management is the major challenge impeding market growth. Blockchain technology is a relatively new technology. The market itself is at a very nascent stage. Like any emerging technological development, one of the key challenges for an emerging field like blockchain technology is the lack of awareness and acceptance of such technologies in the transportation and logistics industry. The lack of awareness about the solution and its applications across the industry rises from the under-penetration of the market. This results in a low rate of adoption and slow implementation of the technology across the world, and even more in emerging economies.
In addition to the lack of awareness, there is a general misconception about the failure of blockchain technology and the loss of jobs due to its implementation. Therefore, enterprises in the transportation and logistics industry may consider it unnecessary and an additional burden to implement this technology. Blockchain technology involves a steep operational learning curve, which may add to the costs and overall unattractiveness of the solution. Thus, the lack of awareness regarding blockchain technology among consumers will hinder the growth of the market in focus during the forecast period.
The cryptocurrency market is linked with the development of blockchain's transformative capabilities. Market dynamics are shaped by the widespread adoption and innovation within blockchains, influencing the broader crypto market. The pivotal role of blockchain technology in the dynamic landscape of the cryptocurrency space. As market blockchains continue to advance, they bring about revolutionary changes, not only in the structure of the crypto market but also in redefining traditional financial paradigms. The synergy between blockchain and the cryptocurrency market is central to the ongoing digital transformation in the financial sector.
The integration of blockchain in cryptocurrency has revolutionized the market, introducing concepts like smart contracts, distributed ledgers, and digital tokens. Scalability and interoperability are key features driving the evolution of blockchains, making them integral in industries like the crypto market, Initial Coin Offerings (ICO), and the Internet of Things (IoT). The broad spectrum of industries benefiting from blockchain adoption includes finance, supply chain, healthcare, and more, fostering a decentralized and transparent marketplace.
The public segment is estimated to witness significant growth during the forecast period. A public cloud blockchain is a fully decentralized blockchain that can be read and used in the world. This type of blockchain allows anyone to participate in the process of deciding the blocks that should be added to the chain and analyze the current state of the blockchain. This process is called the consensus process.
Get a glance at the market contribution of various segments Download the PDF Sample
The public segment was the largest segment and was valued at USD 128.36 million in 2018. Moreover, in 2023, the public cloud segment dominated the blockchain market in the supply chain industry, primarily due to the increasing globalization and the growth of various sectors, such as Information technology (IT), banking, financial services, insurance (BFSI), and pharmaceuticals. A public cloud blockchain in the supply chain industry can help companies record price, date, location, quality, certification, and other information to effectively manage the supply chain. Blockchain in the supply chain has the potential to improve supply chain transparency and traceability, as well as reduce administrative costs.
The growing adoption of blockchain technology in the transportation segment will increase the market growth. Blockchain technology acts as additional security to core processes in the transportation and logistics industry. The technology creates a shared view of the data in real-time for all stakeholders involved in the supply chain. This has increased transparency in the transportation and logistics industry. Thus, blockchain technology in the supply chain will optimize the entire supply chain, which will drive its market growth.
In addition, the global blockchain market in the supply chain industry by transportation will also grow due to the rising number of strategic partnerships between vendors and transportation and logistics companies. Thus, the increased demand and benefit of blockchain in transportation will drive the growth of the segment, which in turn will fuel the growth of the global blockchain market in the supply chain industry during the forecast period.
For more insights on the market share of various regions Download the PDF Sample now!
North America is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The increase in the adoption of blockchain technology by enterprises can be attributed to the growing need to digitize the supply chain. The implementation of blockchain technology in the pharmaceutical supply chain is a new trend in the North American market, as the healthcare sector accounts for 12%-14% of the global third-party logistics market. Enterprises are adopting blockchain technology in their supply chains to gain better visibility in terms of information for customers and users, which, in turn, enhances the efficiency of the enterprise. Hence, these factors are expected to drive market growth in the region during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market analysis and report also include key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accenture Plc: The company offers blockchain solutions in the supply chain industry such as digital identity, payments, and digital transformation.
Amazon.com Inc: The company offers blockchain solutions in the supply chain industry known as Amazon Managed Blockchain.
Auxesis Services and Technologies International: The company offers blockchain solutions in the supply chain industry such as agent contract, policy services, and claim management.
The market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The industry report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Industry Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 53.59% |
Market Growth 2024-2028 |
USD 7.54 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
47.58 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 47% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Amazon.com Inc., Auxesis Services and Technologies International, Bitfury Group Ltd., Capgemini Service SAS, ConsenSys Software Inc., Deloitte Touche Tohmatsu Ltd., GuardTime OU, Huawei Technologies Co. Ltd., Infosys Ltd., International Business Machines Corp., Microsoft Corp., NB Ventures Inc., Omnichain Solutions, Oracle Corp., SAP SE, Tencent Holdings Ltd., TIBCO Software Inc., VeChain Technology, and Wipro Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research and growth report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.