Blockchain in Supply Chain Market Size, Share, Growth, and Industry Analysis, By Type (Public Blockchain, Private Blockchain, and Others), By Application (Marketing and Advertising, Healthcare, and Others), and Regional Forecast to 2028

BLOCKCHAIN IN SUPPLY CHAIN MARKET OVERVIEW

The global blockchain in supply chain market size was USD 0.33 billion in 2023 and is projected to touch USD 3.40 billion by 2032, exhibiting a CAGR of 34.5% during the forecast period.

The efficiency aspect of increased reliability is also affected by blockchain technology throughout the supply chain industry. On the other hand supply chain management involves movement of goods from the supplier to consumer through other channel, the system is exposed to fraud and mistakes and time delay. Blockchain since it offers a distributed database; all transaction and data exchange are presented in a highly secure and transparent way. The physical flow of the goods can be followed through the supply chain hence it becomes easy to determine that the products are original and in good condition.

Also, through smart contracts, there is an embedding of processes within an organization due to blockchain. Predefined actions can be built directly into smart contracts so that they self-execute when set triggers are activated, for example releasing payment when delivery is confirmed. This helps to avoid human interaction and also leads to less time being consumed on a particular task due to break or confusion. In addition, through the implementation of the blockchain technology in the firm’s supply chains, inventory management will be enhanced, counterfeits will be minimized and compliance will be enhanced.

GLOBAL CRISES IMPACTING BLOCKCHAIN IN SUPPLY CHAIN MARKETCOVID-19 IMPACT

Blockchain in Supply Chain Industry Had a Positive Effect Due to Need for Greater Automation during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

As it has been with many other industries and technologies, the pandemic prompted further adoption of blockchain in SCM due to more effective models to deploy. When the global value chains were disrupted, blockchain emerged to be the most effective tool for tracking inventories, shipments, and suppliers’ networks in the unprecedented flow of the current trends. The information flow that enabled tracking of products from the point of production to the destination was essentially popular mainly in the pharmaceutical and foods production industries due to compliance with standard Issues.

Moreover, due to the pandemic and its impact on the general growth of online transactions, the need for more automation and less intermediary participation while using blockchain’s Smart Contracts feature. Smart contracts can directly execute and document transactions without prior and subsequent interaction with the parties which is essential when there are logistical issues such as the recent pandemic. Therefore, increased attention was given to blockchain not only to solve logistic issues but also when transparency is critical such as in cases of vaccine and medical equipment supply chains.

LATEST TREND

"integration of Decentralized Identifiers to Drive Market Growth"

There have been notable developments in the market which has the potential to boost the blockchain in supply chain market share. It’s a solution based on the techniques of associating blockchain and DID with the IPFS to enhance the control of data on supply chains. This approach solves issues like data isolation and communication issues as we have a medium that can capture asset and event information from the supply chain. In this framework, use of a combined blockchain structure ensures participant privacy and yet enables decentralized and tamper proof record keeping.

BLOCKCHAIN IN SUPPLY CHAIN MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Exome Sequencing, Whole Genome Sequencing, RNA Sequencing, and General DNA Testing.

• Public Blockchain: A public blockchain is an open ledger infrastructure where anyone can become a node, approve the transactions, and view the data on the network. It is very clear and safe, since it can be accessed by anyone interested in contributing.
• Private Blockchain: A private blockchain refers to an environment that is closed and can be controlled as participation as well as integration within the network is usually restricted to some specific entities or people. It is generally applied by businesses or organizations in intranet setup, as it enables closer control over who can approve transactions and other information. 

BY APPLICATION

Based on application, the global market can be categorized into Hospitals, Specialty Clinics, Research Institutes, and Diagnostics Laboratories.

• Marketing and Advertising: Communication and persuasion are the efforts whereby one or several organizations use adjustments, measures and techniques to entice the targeted market segment or the public at large to choose its products or services.
• Healthcare: Healthcare can be defined as the process of enhancing the quality, restoring or preserving human health by the delivery of medical services, health care treatment and prevention. It extends from direct and personal care by doctors, nurses and therapists, to such population health care sub sectors as pharmaceutical, health promotional, and well-being industries.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities, and challenges stating the market conditions

DRIVING FACTORS

"Enhanced Transparency to Boost the Market"

There are several elements inspiring the blockchain in supply chain market growth. With blockchain, an unchangeable record of all transactions is made available for easy tracking of the movement of materials from one region to the other. This transparency helps to eliminate fraud, counterfeiting and mistake. Blockchain based smart contracts can eliminate some of the key activities such as payments, delivery notifications, and contract executions, which would decrease administrative expenses and time consumption from manual interferences.

"Increased Security to Expand the Market"

Due to its distributed and encrypted structure, blockchain makes data unalterable; therefore, it provides secure operations and protects such data as trade secrets or compliance information. Direct, the use of blockchain technology increases the efficiency of the company and eliminates many expensive intermediaries such as lawyers, accountants and auditors, cuts paperwork, and other time-consuming procedures and can significantly reduce the cost of the transaction process.

RESTRAINING FACTOR

"Scalability Issues to Potentially Impede Market Growth"

One of the primary disadvantages of blockchain networks as they expand is that scalability becomes an issue where the network struggles to efficiently and rapidly handle a large number of transactions. Whenever there are too many vendors, customers, or suppliers involved, it leads to longer time for transactions, and hence leads to higher costs of running businesses particularly in the global supply chain system. The legal and regulatory conditions of blockchain technology are quite a bit blurred.

OPPORTUNITY

"Blockchain as a Key enabler for Supply Chain Sustainability to Create Opportunity for the Product in the Market"

Being an accessible and unalterable ledger, it can then authenticate the stories of ethical origin, CO2 emissions, and sustainability. The consumer and regulatory side is pressing for more transparency with regards to the sustainability of products, and through blockchain, firms can be in a position to respond to such demands by providing the relevant immutable to prove sustainability and compliance to social responsibility standards. By its nature, blockchain technology has the potential to enable the efficient acquisition of data, more accurate reporting, and therefore support the adoption of sustainable business practices by companies.

CHALLENGE

"Interoperability and Standardization Issues Could Be a Potential Challenge for Consumers"

While blockchain technology is promoted as a way of solving problems associated with transparency and efficiency, the technology is still siloed and different industries and companies are employing different blockchain networks. These differences could act as barriers to interconnectivity of the various players within the supply chain hence reducing and or delaying information exchange. True potential of blockchain technology can only be realized in supply chain when there is some effort made towards forming standard and protocol to ensure compatibility by various systems.

BLOCKCHAIN IN SUPPLY CHAIN MARKET REGIONAL INSIGHTS

• NORTH AMERICA 

North America is the fastest-growing region in this market. The United States blockchain in supply chain market has been growing exponentially owing to multiple reasons. Large organizations are using Blockchain technology most often for the purpose of Traceability and for attaining better Transparency especially in the Food chain safety and PPG (Product Provenance Graphics). It also has several technology start-ups and joint ventures coming up with new blockchain technologies to enhance the supply chain system. Government encouragement and regulatory backing are being extended toward blockchain particularly in regard to raising transparency levels and controlling fraud in international trade.

• EUROPE

The Europe region is currently leading in the adoption of blockchain application for supply chain due to high disciplines in regulation as well as environmentalism. European Union has encouraged block chain-based projects like European Blockchain Partnership for carrying out secure supply chain across borders in EU countries. Automotive, luxury goods, and pharmaceutical companies, among others, are applying blockchain to enhance the traceability of a product and meet the upholding of EU standards. Further, the application of blockchain is being experimented in the reduction of the bureaucratic delay in cross-border trades, for instance post Brexit economy and the global trade environment.

• ASIA

The Asia Pacific is the regions with the increasing interest in the blockchain, especially in China, Japan, and India due to the focus on intermediate supply chain and counterfeit-control. Blockchain technology is also applied to track the goods in the electronics, textile, and food industries. In China, the use of blockchain has been adopted in the digital supply chain plan, especially using cross-border trading and e-commerce activities. Today, India is using blockchain to enhance the supply chain and promote equitable trading in the farming sector.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

Key industry players are shaping the blockchain in supply chain marketplace through strategic innovation and market expansion. These companies are introducing advanced techniques and processes to improve the quality and performance of their offerings. They are also expanding their product lines to include specialized variations, catering to diverse customer preferences. Additionally, they are leveraging digital platforms to increase market reach and enhance distribution efficiency. By investing in research and development, optimizing supply chain operations, and exploring new regional markets, these players are driving growth and setting trends within the blockchain in supply chain.

LIST OF TOP BLOCKCHAIN IN SUPPLY CHAIN COMPANIES

• Microsoft [U.S.]
• IBM [U.S.]
• Oracle [U.S.]
• T-Mining [Belgium]
• DTCO [Germany]

KEY INDUSTRY DEVELOPMENT

September 2021: IBM took significant strives ahead in the blockchain in supply chain marketplace. They recently developed IBM Food Trust Blockchain. IBM Food Trust Blockchain is a solution for improving the level of trust for participants of the food supply chain. Thus, it enables any individuals starting from farmers and up to supermarket retailers not only to share data on the food product origins, their further deliveries, and eventual safety violations but also to guarantee that such products are of great quality and free from damages.

REPORT COVERAGE

SWOT analysis is presented in this work at a high level, and helpful recommendations regarding further evolvement of the market are considered. This paper takes an opportunity to review and discuss the market segments and possible applications that have the potential to influence the market growth in the future years. The work uses both, the data regarding the modern state of the market and the information on its evolution to identify the possible development trends.

 The blockchain in supply chain with better portability is expected to gain high growth rates due to better consumer adoption trends, increasing application areas, and more innovative product developments. Yet, there might be some problems like, for instance, the shortage of raw materials or higher prices for them However, the growing popularity of specialized offerings and tendencies towards enhancing quality foster the growth of the market. All of them are progressing through technology and innovative strategies in developments as well as in supply chain and market. Due to changes in the market environment and growing demand for variety, the blockchain in supply chain has a promising development since it constantly develops and expands its application.