As per the report published by Fior Markets, the global blockchain supply chain market is expected to grow from USD 415 million in 2020 and reach USD 12871.26 million by 2027, growing at a CAGR of 52% during the forecast period 2021-2028.
The blockchain supply chain market has grown significantly in recent years. This expansion is linked to an increase in e-commerce demand, increased demand for greater supply chain transaction security, and a desire for supply chain transparency. When its cryptocurrency upset the financial services industry, blockchain technology captured the public’s attention. The technologies are being applied to new fields such as art, healthcare, energy, telecommunications, and supply chain management. Today, blockchain serves as a gatekeeper in the burgeoning “trust economy,” The supply chain is critical. The effectiveness of a supply chain is dependent on trust between the many stakeholders, and the integration of blockchain and IoT technologies can help to increase the traceability and reliability of information along the chain.
The blockchain is a digital database that holds immutable and authenticated transaction records. Blockchain technology acts as an open ledger. Every transaction on the network is recorded and made available for all the entities or participants involved in the network to see and verify. As a result, blockchain eliminates the requirement for information to be transferred between firms by mail or any other communication medium. The blockchain centralizes company information exchange, ensuring transparency at all levels of supply chain management. Blockchain technology’s technical nature hinders its adoption among businesses. Nonetheless, as awareness grows, the blockchain supply chain market is expected to undergo innovative and advanced transformations that will allow participants to access everything they need on a single platform.
The global blockchain supply chain market is predicted to grow significantly due to rising demand for supply chain transparency and an ever-increasing desire for better supply chain transaction security. Furthermore, the benefits of the blockchain supply chain, such as cost reduction, provenance tracking, developing consumer trust, and eliminating time-consuming record-keeping and product tracking, propel the market forward. The market is being held back by a lack of understanding of blockchain technology, network security threats, and unknown regulatory norms. The growing necessity for eliminating go-betweens by automating supply chain activities and expanding government initiatives, and introducing IoT will give market growth possibilities.
The major players in the global blockchain supply chain market are TIBCO Software, Oracle Corporation, IBM Corporation, Auxesis Group, Microsoft Corporation, SAP SE, Accenture Plc, Huawei, and BTL Group.
- In April 2019, Volkswagen Group cooperated with IBM Corporation to trace mineral supply chains using blockchain technology. Volkswagen will be able to meet the Organization for Economic Cooperation and Development’s sourcing requirements due to this agreement (OECD).
- In January 2018, IBM collaborated with Maersk to develop a distributed ledger technology (DLT) platform for supply chains to improve information flow and transparency.
- Chronicled, a commercial supply chain developer based in the United States, raised $16 million in Series-A funding in January 2019. The company is growing a platform that automates business supply chains using blockchain technology.
- Eximchain, a Singapore-based blockchain in supply chain startup, received $20 million from a syndicate of investors in March 2018. The fundraising was led by FBG Capital, a Chinese digital asset management firm.
The counterfeit Detection segment dominated the market and held the largest market share of 34.21% in the year 2020
Based on application, the global blockchain supply chain market is segmented into Payment & Settlement, Counterfeit Detection, Product Traceability, Smart contracts, and Risk & Compliance Management. The Counterfeit Detection segment dominated the market and held the largest market share of 34.21% in the year 2020, since it is frequently used to verify whether a product is genuine or not Blockchain anti-counterfeiting solutions employ barcodes to track and trace products throughout the supply chain, ensuring that customers receive actual goods.
The retail and Consumer Goods segment dominated the market and held the largest market share of 30.64% in the year 2020
Based on Industry Vertical, the global blockchain supply chain market is segmented into Retail and Consumer Goods, Healthcare and Life Sciences, Manufacturing, Oil and Gas, and Logistics. The retail and Consumer Goods segment dominated the market and held the largest market share of 30.64% in 2020. This expansion can be ascribed to the increased adoption of supply chain management software by retail players. The growing usage of Blockchain Supply Chain technology by retailers for product traceability, payments & settlement, and counterfeit detection propels the market forward.