Blockchain Market - Forecast(2024 - 2030)

The Blockchain Market in Supply Chain is forecast to reach $524m by 2024 and is estimated to grow at a CAGR of 50% during the forecast period 2019-2024. The market growth is fuelled by surging applications of the technology in procurement and sourcing management that improve the efficiency of the supply chain.

The report: “Blockchain Market in Supply Chain – Forecast (2019-2025)”, by IndustryARC covers an in-depth analysis of the following segments of the Blockchain Market in Supply Chain. 

By Type: Public Blockchain, Private Blockchain, Consortium Blockchain, Hybrid Blockchain.

By Application: Contract Management, Payment Systems, Provenance, Procurement, Ownership Transfer, Asset Tracking, and Inventory Control.

By End User Industry: Marketing and Advertising, Drugs and Healthcare, Logistics, Commerce and Retail, Others.

By Geography: North America, South America, Europe, APAC, RoW.

Public blockchain holds a major share in the blockchain in supply chain market by occupying over 85% market in 2018. The public blockchain is a platform wherein every participant (node) has the access to create transactions. It is designed for secured transactions between the users and cut down the involvement and related expenses of the third parties during the transactions. Owing to these benefits, public blockchain is anticipated to witness further growth in adoption in supply chain systems which will drive the market at CAGR of 45% in the forecast period. In the latest developments, Nestle has announced the testing of public blockchain technology for streamlining its dairy supply chain. In this regard, the company has partnered with OpenSC – a blockchain company based in Australia to seek help with blockchain solutions. 

The fastest-growing sub-segment under application segment is procurement which is anticipated to grow at a CAGR of 74% during the forecast period 2019-2024. The growth of the procurement sub-segment is attributed to the numerous advantages blockchain adds to the procurement process in terms of efficient usage of resources and time. The integration of blockchain in procurement will make the business operations pertaining to the same more efficient by eliminating the intermediaries and the archaic processes. In May 2019, Daimler, a key automotive player has turned to blockchain tool Icertis Contract Management (ICM) to manage sourcing and contracting of its 400,000 supplier base.   

The Blockchain Market in Supply Chain is poised to grow at a rapid pace owing to wide range of applications in e-commerce and maritime industries involving logistics. In maritime trade, the technology is being used for asset tracking applications and help to reduce the revenue loss that occurs due to maritime fraud that currently accounts for $600 billion annually. Blockchain technology asset tracking applications is expected to reduce revenue loss by approximately 20-30% in the future and is therefore anticipated to drive the adoption of blockchain technology in logistics, retail and commerce industries. In January 2019, Singapore government has entered into a MoU with MPA (Maritime Port Authority), Infocomm Media Development Authority (IMDA), the Singapore Shipping Association and Singapore Customs for the development of a Blockchain-based maritime trade platform called as TradeTrust.

Asia Pacific (APAC) is poised to emerge as the largest region for Blockchain Technology in Supply Chain market with a revenue of $256m by 2024. The region is emerging as fastest growing owing to rising awareness about the advantages of blockchain in supply chain such as operational and cost efficiency, security, transparency in transaction and so on. Blockchain spending in China is anticipated to cross $1.5 billion mark by 2022 showing a sharp increase from around $80 million in 2017, which  is poised to increase the technology usage across various industries. Alibaba, China’s largest e-commerce and retailer company has announced to adopt the technology for cross border supply chain to reduce the complexity and improve transparency.

The e-commerce sector is witnessing significant growth globally. This can be attributed to the rise in smartphone usage, digital payments and the DTC (direct to consumer) brands. According to Internet Retailer, global e-commerce sales grew by 18% in 2018 compared to 2017. The e-commerce businesses have lengthy and cumbersome processes due to number of stakeholders involved in it which in turn increases discrepancies in the supply chain management, eventually resulting in losses and customer dissatisfaction. In January 2019, Logistics Company UPS made an undisclosed equity investment in Inception Corporation for the development of blockchain-based e-commerce solutions for B2B buyers and sellers.

According to Industry reports, an average U.S. Fortune 100 company has over 2 months of sales outstanding. This is due to the analog gaps owing to the pending work of generating invoices or receipts, transfer to clients and processes that include payment procedures.  Blockchain can eliminate such hassle in manual contracts and payment procedures by switching to digital contracts and payments.  In April 2019, Harmony, a blockchain startup in U.S. which focuses on the development of digital contracts had raised $18m in token pre-sale. 

Blockchain technology is still in the nascent stages with only a few engineers well versed in the technology. This makes the technology highly expensive and complex in implementation. There are a set of technical issues such as scalability and the ease of amalgamation with the existent databases prevent the large scale adoption of block chain in supply chains. Therefore, the crudity of blockchain as a technology is a major challenge for the block chain market in supply chain. As of September 2018, U.S. had over 27,000 blockchain developers followed by India with over 12,000. However, countries such as China, South Korea with high electronics industrial activity had less than 2000 developers. This challenges the growth of the technology in such countries which account for a large number of electronic exports worldwide.

Partnerships and acquisitions along with solution development and up-gradation are the key strategies of the players in the Blockchain Market in Supply Chain. The Blockchain Market in Supply Chain is moderately consolidated with the top five players accounting for over 40% of the total market in 2018. The major players in the market include IBM Corp., Oracle Corp., T-Mining, DTCO, Deloitte, BTL Group Ltd., Ripple Labs Inc., and others. 

In April 2019, Volkswagen Group announced their partnership with the IBM Corporation for tracking of mineral supply chains with blockchain technology. This partnership will enable Volkswagen to meet the sourcing standards set up by Organization for Economic Co-operation and Development (OECD).

Aiming to promote more efficient and secure global trade, in January 2018, IBM had collaborated with Maersk to develop a distributed ledger technology (DLT) platform for the supply chains to support information sharing and improving transparency. 

Chronicled, the U.S. based enterprise supply chain developer had raised $16m in a Series-A funding in January 2019. The company uses blockchain technology to power a platform that automates the supply chain of businesses.

Eximchain, a Singapore-based blockchain in supply chain startup received $20m from a group of investors in March 2018. The funding was led by FBG Capital, a China-based digital asset management firm

The base year of the study is 2018, with a forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. These provide the key market participants with the necessary business intelligence and help them understand the future of the Blockchain Market in Supply Chain. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of Blockchain Market in Supply Chain, and their specific applications in commerce & retail, logistics, drugs & healthcare, energy & utilities, and others.