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The blockchain market in supply chain industry is estimated to grow at a CAGR of 52.21% between 2022 and 2027. The size of the market is forecast to increase by USD 4,936.05 million. The growth 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.
This report extensively covers market segmentation by application (transportation, warehousing, and others), type (public, private, and hybrid), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The reports categorize the global blockchain market in supply chain industry as a part of the global application software market within the global IT software market. The parent global application software market covers companies that are engaged in developing and producing application and system software. It also includes companies offering database management software. The global application software market covers companies that are engaged in developing and producing software designed for specialized applications for the business or consumer market. It includes enterprise and technical software, as well as cloud-based software. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The increasing complexities due to time-bound deliveries and customization of the supply chain are notably driving the market growth, although factors such as the lack of awareness about blockchain technology in supply chain management may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Blockchain Market Driver In Supply Chain Industry
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, vendors and end-user industries are availing blockchain technology for streamlining their business operations and maintaining high efficiency and agility in the supply chain. As a result, increased criticality and complexities of the supply chain are prompting different stakeholders to implement blockchain solutions in their business processes, driving the growth of the market during the forecast period.
Key Blockchain Market Trend In Supply Chain Industry
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 vendors 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 vendors 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 global blockchain market in the supply chain industry during the forecast period.
Many enterprises have increasingly been adopting blockchain-as-a-process as it helps them in reducing 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.
Key Blockchain Market Challenge In Supply Chain Industry
Lack of awareness about blockchain technology in supply chain management is the major challenge impeding the 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.
Key Blockchain Market In Supply Chain Industry Customer Landscape
The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Blockchain Market in Supply Chain Industry Customer Landscape
Vendors 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.
Oracle Corp. - The company offers blockchain solutions in the supply chain industry to ensure transparency and fairness, helping SMEs improve their credit ratings. Through the cloud and license segment, the company engages in building digital infrastructure platforms by using new ICT technologies such as cloud computing, software-defined networking, big data, and the Internet of Things. Additionally, through the carrier business, the company offers a series of products, services, and business solutions encompassing wireless networks, fixed networks, cloud core networks, carrier software, IT infrastructure, network energy, professional services, and network rollout services for global telecom carriers.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Based on application, the market is segmented into transportation, warehousing, and others. The market share growth by the transportation segment will be significant during the forecast period. 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.
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The transportation segment was valued at USD 114.72 million in 2017 and continue to grow until 2021. 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. Stakeholders across the supply chain are focusing on strategic alliances to expand their product portfolios, gain a competitive advantage, and improve their market reach and customer base. The high degree of competition has also compelled established vendors to improve their market presence through strategic alliances.
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North America is projected to account for 47% of the global market share growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The blockchain market in the supply chain industry in North America is expected to grow due to the increase in the adoption of blockchain technology among enterprises for the secure exchange of bill of lading-related information, as well as for settling freight, repair, and lease costs. The increase in the adoption of blockchain technology by enterprises can be attributed to the growing need to digitize the supply chain. 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. For instance, IBM and Danish shipping conglomerate, The Maersk Group, provides blockchain services worldwide, including across ports in North America such as the Port of Houston.
The blockchain market in the supply chain industry in North America was negatively impacted by the outbreak of COVID-19 in 2020. However, the region entered into the recovery phase owing to the advent of vaccination drives and the ease of lockdown restrictions in 2021. Thus, the resumption of industrial operations across various end-user industries, such as automotive, created the demand for supply chain management. Such factors are expected to enhance the growth of the blockchain market in the supply chain industry in the region during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by application (transportation, warehousing, and others), type (public, private, and hybrid), and geography (North America, Europe, APAC, South America, and Middle East and Africa).
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Blockchain Market In Supply Chain Industry Scope |
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Report Coverage |
Details |
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Page number |
178 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 52.21% |
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Market growth 2023-2027 |
USD 4936.05 million |
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Market structure |
Fragmented |
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YoY growth (%) |
42.0 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 47% |
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Key countries |
US, Canada, China, UK, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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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 AS, Huawei Technologies Co. Ltd., Infosys Ltd., International Business Machines Corp., NB Ventures Inc., Omnichain Solutions, SAP SE, Tencent Holdings Ltd., TIBCO Software Inc., VeChain Technology, Wipro Ltd., Oracle Corp., and Microsoft Corp. |
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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, and market condition analysis for the forecast period. |
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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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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