LONDON--(BUSINESS WIRE)--The global blockchain market in the retail sector is expected to post a CAGR close to 81%, according to the latest market research report by Technavio. However, the market’s growth momentum is expected to decelerate because of the decline in year-over-year growth during the forecast period 2019-2023.
A key factor driving the growth of the market is the demand for increased online security. Personal identity and data control are the major concerns for online retailers as most of the interactions between customers, and online retailers are controlled via usernames and passwords stored in centralized platforms. Such platforms are vulnerable to hacking, and user data can be accessed and misused by hackers. However, the risk of identity theft and fraud is eliminated with the use of a decentralized identity, such as blockchain. In the retail sector, the application of blockchain for identity management can help in reducing identity and transaction fraud in offline or real-world scenarios where people can easily falsify documentation and identity proofs. Blockchain identity management also enables retailers with more secure and foolproof identity exchanges during the transaction in real-world applications. This will drive the growth of the market during the forecast period.
As per Technavio, the growth of quantum computing will have a positive impact on the market and contribute to its growth significantly over the forecast period. This global blockchain market in retail sector 2019-2023 research report also analyzes other important trends and market drivers that will affect market growth over 2019-2023.
Global blockchain market in retail sector: Growth of quantum computing
Although quantum computing is still in the development stage, it is considered an existential threat to public key cryptography. Public key cryptography systems depend on the linking of a public and a private key using a large prime number to encrypt the data. Since blockchain technologies currently available for payment in the retail sector also utilize public key cryptography, the advent of quantum computing also poses a threat to blockchain systems in the retail sector (for payments). Some organizations are already working on solving this problem by developing quantum-based blockchain solutions. Thus, these systems will enable a more future-proof blockchain technology, which is impossible to hack data and maintain data security for end-users.
“The need to improve business efficiency is another factor that is expected to drive the growth of the global blockchain market in the retail sector, as the rise in the number of connected devices in the retail industry has led to increased amounts of data generated within organizations and from consumers. Retailers have realized that they can use this data to optimize costs, deliver better services, boost revenues and change business models. Blockchain technology also enables faster, immutable, and verified business-to-business interactions between enterprises thereby boosting the growth of the overall global market,” says an analyst at Technavio.
Global blockchain market in retail sector: Segmentation analysis
This market research report segments the global blockchain market in the retail sector by end-user (large enterprises and SMEs), and geographical regions (APAC, Europe, MEA, North America, and South America).
The North American region led the market in 2018, followed by Europe, APAC, MEA, and South America respectively. However, during the forecast period, the APAC region is expected to register the highest incremental growth due to the high adoption of technologies across the retail industry and an influx of SMEs.
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