Allied Market Research (AMR), a market research and consulting firm based in India, published a report on 8th July saying that the global blockchain supply chain market might be worth around 9 billion dollars by the year 2025.
The firm expects that the market will show a compound growth rate of more than 80% from the year 2018 to 2025 and in 2025 the market can be worth upward of $9.85 billion. AMR’s report highlighted a lot of factors that are contributing to this immense growth with transparency and security of the supply chain being key factors that are fueling this growth.
Blockchain provides companies with better security and transparency of supply chain transactions through a secure peer to peer network. The report states:
Increase in need for supply chain transparency, the 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 growth of the blockchain supply chain market.
The industry that is being impacted the most by blockchain’s disruption in the supply chain sector is the retail industry and that too in a good way. The report forecasts that the retail sector will lead the total market revenue of the blockchain supply chain from 2018 through 2025.
The health industry will also show the highest compound annual growth rate over the same period but won’t be able to match retail’s revenue figures by 2025. Other sectors that will contribute to the growth will be food and beverages, manufacturing and oil and gas. About the rise in retail’s dominance, the report states:
“The retail industry dominated the blockchain supply chain market share in 2017 and is expected to remain dominant during the forecast period, due to the rise in adoption by retail players to streamline their supply chain processes. Further, this is expected to increase the demand for blockchain supply chain services in the retail industry.”
The report also talked about how the health care sector will outdo retail in the long run in terms of growth rate:
“However, the blockchain supply chain market forecast predicts the health care industry to witness the highest CAGR during the study period. Health care service providers are implementing blockchain technology to constantly monitor and track health care products from production to delivery.”
North America is the region that will contribute the most to this increase in the blockchain dominance in the supply chain as the region has the best infrastructure for implementation and technology adoption in all of the world.
The report also predicts that the Asia Pacific region will have the highest compounded growth rate in the whole world. As the infrastructure and the technology adoption becomes better, it will be the biggest region for the blockchain-based supply chain. The report says:
“North America dominated the overall blockchain supply chain market in 2017, as the region is equipped with strong broadband access and the presence of a significant number of market players. Further, the North America region is considered to be most advanced in terms of infrastructure and technology adoption.”
The report further states:
The Asia Pacific, on the other hand, is expected to record highest growth CAGR for the blockchain supply chain market during the forecast period with ongoing developments in the major APAC countries, such as China, India, Japan, and Singapore.