Global Blockchain Market for the Supply Chain Expected to Grow at 87% CAGR Until 2023
Blockchain technology in the supply chain is expected to boom over the next five years
The global blockchain supply chain market is expected to grow from $45 million in 2018 to $3,314.6 million by 2023, at a Compound Annual Growth Rate (CAGR) of 87% during the forecast period, according to MarketsandMarkets.
An increasing need for supply chain transparency and rising demand for enhanced security of supply chain transactions are major growth factors for the market. Growing need for automating supply chain activities and eliminating middlemen with blockchain in supply chain management would create opportunities for market growth during the forecast period.
Product traceability application segment is expected to dominate market in terms of market size, as the blockchain technology could provide real-time information related to products at each stage of supply chain and thus, helps to eliminate possibility of counterfeiting.
The blockchain supply chain market has been segmented on the basis of providers into three categories: Application and solutions providers, middleware providers, and infrastructure and protocols providers. These providers offer infrastructure to develop in the blockchain-based platforms. Among these types, the application providers type is the fastest growing segment in the overall market.
Blockchain supply chain applications are finding an increased adoption among industry verticals, including retail and consumer goods, healthcare and life sciences, manufacturing, oil and gas, and logistics. These major industries are adopting the blockchain technology to enhance transparency, security and product traceability across supply chain. The retail and consumer goods vertical is estimated to hold the largest market size in 2018, owing the high adoption of blockchain technology for payments and settlement, product traceability, and counterfeit detection.
North America is expected to account for the largest share of the overall market in 2018. North America is considered the most advanced region in terms of technology adoption and infrastructure. The wide presence of key industry players of blockchain technology solutions in this region is the main driving factor for the market. Companies across industry verticals, such as retail and consumer goods, manufacturing, healthcare and logistics, provide significant growth opportunities for vendors in the market. In terms of growth, APAC region is expected to record the highest CAGR during the forecast period with ongoing developments in the major APAC countries, such as China, India, Singapore, and Japan. However, lack of awareness and technical understanding about blockchain technology may restrain the growth of global market.
Major blockchain technology vendors include IBM (US), Microsoft (US), Oracle (US), SAP SE (Germany), AWS (US), Huawei (China), Bitfury (Netherlands), Auxesis Group (India), TIBCO Software (US), BTL Group (Canada), Applied Blockchain (UK), Guardtime (Estonia), Nodalblock (Spain), Peer Ledger (Canada), Blockverify (UK), TransChain (France), RecordsKeeper (Spain), Datex Corporation (US), Ownest (France), Omnichain (US), Traceparency (France), Digital Treasury Corporation (China), Chainvine (UK), VeChain (China), Algorythmix (India), and OpenXcell (US). These players majorly adopted partnerships and new product launches as the key growth strategies to offer feature-rich blockchain technology solutions to their customers and further penetrate regions with unmet needs.