DUBLIN--(BUSINESS WIRE)--The "Blockchain Supply Chain Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" report has been added to ResearchAndMarkets.com's offering.
The Blockchain Supply Chain Market is expected to grow at a CAGR of 81.7% over the forecast period 2021 to 2026.
A growing requirement for supply chain transparency and surging demand for heightened security of supply chain transactions are significant growth factors for the market.
Increased automation and removal of intermediaries with blockchain in supply chain management would generate possibilities for market growth.
The platform component part dominated the overall blockchain supply chain market and is anticipated to remain aggressive due to an increase in the adoption of blockchain platforms to streamline the supply chain processes. The segment is anticipated to observe a significant growth in the upcoming years due to the advent of affordable and diverse pricing plans offered by market players.
During a 2019 survey by Kenco Group, 40% of supply chain leaders stated they intend to invest in blockchain technologies. In that same survey, 46% of respondents revealed that they plan to invest in sensors and the Internet of Things (IoT). As per the same source, in 2019, supply chain leaders show a greater willingness to take a risk on new technologies, as 46% of respondents say they are willing to spend 10-24% more on innovation, up from 24% in 2018 and 29% in 2017.
Forward-thinking companies are planning to invest when blockchain gets to the point that it can deliver value. However, blockchain has yet to provide full value beyond food or pharmaceutical applications. As a result, only 6% of supply chain leaders consider blockchain to be a high priority in 2019, according to Kenco Group.
The increasing number of smartphone and tablet subscribers has resulted in the rapid growth of the E-Commerce sector. For example, according to Experian Plc., 97% of tablet owners have purchased their device, and 83% have engaged in shopping-related activities immediately before, during, or after visiting a store. This happens to be a significant factor leading to opportunities for the blockchain market in supply chain management.
Return fraud and abuse costs retailers USD 777,877 per USD 1 billion in sales, according to the National Retail Federation's 2018 Organized Retail Crime Survey. Blockchain can assist retailers in authenticating and managing these transactions to decrease return fraud. One firm that has implemented this tech is the clothing retailer EVRYTHNG, which has set its wares with digital identities at the point of manufacture to be traced throughout their lifecycle.
Healthcare service providers are performing blockchain technology to control and track healthcare products from production to delivery continually. Also, blockchain supply chain offerings enable pharmaceutical companies to decrease the illegal activities, such as counterfeit drugs and unlawful production of harmful medicines, improper stock control.
A smart contract is a supply chain computer protocol that digitally facilitates, verifies, or enforces the negotiation and performance of an agreement and ultimately makes tracking shipments and deliveries relatively easier. Now, organizations are leveraging the blockchain in smart contracts, further fueling the blockchain market in supply chain management.
Key Market Trends
Retail & Consumer Goods to Dominate the Market
The retail industry controlled the blockchain supply chain market share and is supposed to remain dominant due to a surge in adoption by retail players to streamline their supply chain processes. Moreover, blockchain assures quality, product safety, reliability, and authenticity, along with enabling supply chain partners to know about their product location. These determinants drive market growth for blockchain in the retail industry.
Counterfeit sneakers make up about 40% of the estimated USD 600 billion global fake fashion industry. The traditional methods manufacturers have used to assure authenticities, such as seals and certificates, can themselves be counterfeited. But retailers are beginning to implement blockchain technology to solve the counterfeiting problem.
An increase in demand for transparent transactions and smart contracts is the key factor driving the market growth for blockchain in the retail industry. Smart Contracts can help in automating payment process for online as well as offline transactions. It can save time and cost for companies by removing the merchant (middleman), who charges extra for authenticating the transaction.
The retail industry, owing to the rise in adoption by retail players to streamline their supply chain processes, is anticipated to dominated the blockchain supply chain market. For instance, in a survey by Eyefortransport Ltd. (left), the most significant share of spending was directed towards understanding the technology with 38.2% of retailers, brands & manufacturers, and 55.3% of logistics service providers stating that they spent money on blockchain in the supply chain area.
Amazon Web Services Inc.
Huawei Technologies Co., Ltd.
TIBCO Software Inc.
Bitfury Group Limited.
Digital Treasury Corporation
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