According to a recent report published by Allied Market Research, titled, "Blockchain Supply Chain Market by Component, Application, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2018–2025," the global blockchain supply chain market size was valued at $93.16 Million in 2017 and is projected to reach $9,852.91 Million by 2025, growing at a CAGR of 80.2% from 2018 to 2025.
Increase in need for supply chain transparency, proliferation of e-commerce industry and rise in demand for enhanced security of supply chain transactions are some of the factors expected to boost the blockchain supply chain market growth. The blockchain technology decentralizes the transaction management by replacing middleman with secure digital records. Blockchain synchronizes all transactions and data across the supply chain network instead of being managed by central intermediary. Blockchain makes it possible for all the entities involved in the supply chain network to share and agree upon key business transactions and information. However, lack of awareness about this technology and scarcity of skilled workforce are expected to hamper the growth of the blockchain supply chain market during the forecast period.
Based on component, the market is bifurcated into platform and services. The platform segment dominated the overall blockchain supply chain market share in 2017 and is expected to remain dominant during the forecast period. Nonetheless, the service segment is expected to grow with highest CAGR during the forecast period. The growth of services segment is attributed to the rise in adoption of consulting and implementation services for blockchain technology by various enterprises worldwide.
In term of application, the market is bifurcated into smart contracts, payment & settlement, product traceability, inventory monitoring, compliance management, and others. The product traceability segment was the highest contributor to the global blockchain supply chain market in 2017 and is projected to remain dominant during the forecast period. Various industries including healthcare and food & beverages are adopting blockchain technology to trace the products at various stages in the supply chain and this is expected to drive the product traceability segment growth in coming years. Smart contracts application segment is projected to rise with highest CAGR during the forecast period. The smart contracts automate the contract execution in the supply chain and eliminates the need for intermediaries.
By industry vertical, the retail industry segment dominated the overall blockchain supply chain market share in 2017 and is expected to continue this trend during the forecast period, owing to strong adoption of blockchain technology by retail market players in their supply chains. The study includes blockchain supply chain market analysis for all the mentioned segments across geographies.
Key Findings Of The Study
- By component, the services segment is expected to exhibit significant growth in the global blockchain supply chain industry during the forecast period.
- Based on application, the product traceability segment accounted for the highest revenue in 2017. Further, smart contracts application segment is expected to exhibit highest CAGR growth in the market.
- Based on industry vertical, the retail industry generated the highest revenue in 2017 and the healthcare industry is expected to grow with highest CAGR.
- Based on region, Asia-Pacific is anticipated to exhibit substantial growth during the forecast period. With the significant growth of the market, the blockchain supply chain market outlook looks positive for coming years.
Many enterprises are expected to enter the market in near future with the expected lucrative growth of the market. Some of the key market players profiled in the report include IBM Corporation, Microsoft Corporation, Oracle Corporation, SAP SE, AWS Inc. Huawei Accenture Plc., Auxesis Group, TIBCO Software, and BTL Group. The study also includes blockchain supply chain market trends, analysis, and future estimations to determine the imminent investment pockets.