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The blockchain market in supply chain industry size is forecast to increase by USD 4.93 billion at a CAGR of 52.21% between 2023 and 2028. In the supply chain industry, the integration of blockchain technology has emerged as a potential solution to address the complexities and challenges of the modern market. Thefts in cargo transportation continue to rise, necessitating enhanced security measures. Blockchain's decentralized and immutable nature offers a robust solution to this issue. Furthermore, time-bound deliveries and customization add intricacy to the supply chain. Blockchain's transparency and traceability enable real-time monitoring and streamline the process. Lastly, the e-commerce sector's exponential growth necessitates a more efficient and secure system. Blockchain technology's implementation in the supply chain industry addresses these concerns, ensuring security, transparency, and efficiency.
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In the ever-evolving SCM industry, supply chain transparency is paramount, prompting a shift towards automating supply chain activities to minimize reliance on middlemen. Sectors like healthcare institutions are adopting distributed ledger technology for enhanced regulatory acceptance and transparency within the supply chain ecosystem. Leveraging payment and settlement mechanisms and smart contracts, industries ensure product traceability and counterfeit detection, especially in retail and consumer goods, healthcare and life sciences, and manufacturing sectors. In oil and gas, automation and digital database records streamline operations, while blocks of verified transactions replace the need for a central middleman. Origins tracing becomes seamless, enabling efficient transactions and information flow across the supply chain, mitigating risks, and enhancing risk and compliance management. As industries embrace the potential of distributed ledger technology, the SCM landscape witnesses a paradigm shift towards greater efficiency, transparency, and resilience.
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.
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.
Moreover, 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 and trends 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 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.
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.
Oracle Corp. - The company offers blockchain solutions in the supply chain industry to ensure transparency and fairness, helping SMEs improve their credit ratings.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 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 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. 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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
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In the realm of legal services and insurance services, settlement services play a crucial role, especially in sectors like transport management where route planning and fleet management are essential for optimizing delivery schedules. Harnessing energy and computing power, industries explore Bitcoin technology and permissioned blockchain for secure transactions, while cloud-based solutions streamline operations in the FMCG segment. Anti-counterfeiting solutions bolster consumer data management and advertising, enhancing fulfillment and transportation management processes. Innovations in trucking and containerization, coupled with computerization of raw materials and finished goods, fuel leaner and agile supply chains in APAC enterprises. From sales to fees, certifications, and approvals, payments and procurement data are streamlined through authentication processes for faster delivery and quality monitoring. Technologies like ML, digital asset holdings, and non-fungible tokens revolutionize intellectual property tokenization, ensuring market liquidity and precise demand forecasting. Real-time data from smart devices, RFID tags, and IoT sensors enable end-to-end visibility and fraud prevention, fostering customer trust in a robust technological ecosystem with a solid legal structure across industry vertical segments.
Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2022 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 52.21% |
Market growth 2023-2027 |
USD 4.93 billion |
Market structure |
Fragmented |
YoY growth (%) |
42.0 |
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 Vendors, Market Positioning of Vendors, 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 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. |
Market dynamics |
Parent market analysis, Market forecasting 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. |
Customization purview |
If our market 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 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
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