Blockchain For Supply Chain Market | Contrive Datum Insights

Market Overview:

In 2022, the Blockchain for Supply Chain market was worth USD 569.05 million. By 2030, it is expected to be worth USD 16.47 billion, which means it will have grown at a CAGR of 52.3% from 2023 to 2030.

The blockchain is a list of digital databases or blocks of events that have already been checked. It keeps all transactions and data in the supply chain network in sync so that they don't have to be handled by a single middleman. Supply chain management is a way to plan, control, and carry out the flow of raw materials and finished goods in a way that saves money. Blockchain is used in the supply chain to lower costs, track where goods came from, and build trust. People have seen the Blockchain Supply Chain Market change in new and advanced ways, which gives users access to everything they want on a single platform. The Blockchain Supply Chain Market is split up by Component, Application, and Industrial Vertical.

Blockchain for Supply Chain Market Insights 2019, Global and Chinese Scenario is a professional and in-depth study of the current state of the global Blockchain for Supply Chain industry, with a focus on the Chinese market. The report gives key data about the market status of Blockchain for Supply Chain manufacturers and is a good way for companies and people interested in the industry to get advice and direction. Overall, the study gives a detailed look at the global and Chinese Blockchain for Supply Chain markets from 2014 to 2024, taking into account all the important factors.

This market is growing because there is more demand for e-commerce, more demand for more secure transactions in the supply chain, and a need for more openness in the supply chain. 

Recent Developments

• In April 2019, Volkswagen Group worked with IBM Corporation to use blockchain technology to track the supply lines for minerals. Volkswagen was able to meet the standards for buying set by the Organization for Economic Co-operation and Development (OECD) because of this partnership. (OECD).
• In June 2019, MIMOS and Oracle worked together to use blockchain technology to make things more open and trustworthy.
• In January 2019, UPS made an undisclosed stock investment in Inception Corporation for the development of blockchain-based e-commerce solutions for B2B buyers and sellers.
• In October 2018, Oracle Blockchain Applications Cloud came out to help customers build trust in their business networks and make deals faster and more flexible.
• In September 2018, NITI Aayog and Oracle made a Statement of Intent (SoI) to test a real drug supply chain using blockchain distributed ledger and IoT software. This was done to help India deal with the growing problem of fake drugs.

Market Dynamics:

Driver:  Blockchain technology is becoming more and more popular in retail and SCM.

The market is changing because blockchain technology is becoming more popular in retail and SCM. Every day, people in the retail and SCM industries do business with each other and share information. Information about the authentication process, how to buy things, sales, fees, licenses, approvals, and payments may be among the data. The biggest problems that companies in the supply chain business have to deal with are lowering costs, increasing speed, and keeping track of where and how well products are moving at all times. Different parts of the supply chain management (SCM) industry have started to use blockchain technology to make business operations more open and efficient and to improve the general experience of the final delivery phase. By combining blockchain technology with an SCM system, data can't be changed. This is likely to be one of the biggest reasons for the blockchain market to grow as a whole. This technology also makes it possible to record activities on distributed ledgers. This gives different agencies more transparency, stops fraud, and makes them more efficient.

Restraint:  Unknown state and standards of regulations

As technology improves, regulatory bodies need to know what the current rules don't cover and how these rules can affect technology-enabled programs as a whole. The blockchain supply chain market is still worried about rules that aren't clear. At the moment, the lack of laws is likely to be one of the biggest things holding back the use of blockchain technology, especially in supply chain management (SCM) in many industries. Healthcare institutions all over the world are working together to come up with a uniform set of standards for blockchain technology. However, one of the biggest challenges in changing supply chain systems is getting healthcare institutions to accept new regulations. The distributed ledger technology is still in its early stages. This means that regulators and politicians at both the national and international levels have a lot of questions about the wide range of uses, security, and authenticity. Because of problems like standardization and interoperability, it is still not clear how blockchain technology will be regulated.

Opportunity: Increasing need to automate tasks in the supply chain and get rid of middlemen

The supply chain ecosystem is made up of many different services, such as legal, insurance, settlement, transport management, route planning, norm compliance, fleet management, delivery plans, and communication with stakeholders. These processes require middlemen. Blockchain technology gives supply chains an automatic way to store information in a digital format that is very hard to change. By using blockchain technology in the supply chain, there would be no need for middlemen to validate transactions or negotiate terms. Also, blockchain technology keeps all transaction data in sync across networks, so each user can check the work of the others. It will eventually automate deals in the supply chain and encourage stakeholders to work directly with each other, getting rid of the need for middlemen. The other benefit of blockchain technology is that each transaction can be correctly traced back to its point of origin, even though there are a lot of transactions and their data to deal with.

Challenges: Keeping up with the growing amount of info

In blockchain technology, validating blocks and keeping ledgers take a lot of energy and computing power. When it comes to Bitcoin technology, the networks are big and open, and they can handle about 450 trillion transactions per second. This number of transactions per second is small compared to the number of transactions that supply lines are expected to need. Also, supply chains mostly use permissioned blockchain because of privacy concerns. The permissioned blockchain still has fewer features than the centralized databases that supply chain groups are already using. This raises a lot of questions about the kinds of data that the permissioned blockchain can store. It would be hard to make the permissioned blockchain bigger to keep up with the speed at which big data is growing.

Market Segmentation:

By Component: 

The market is split into Platform and Services based on the type of component. Because blockchain technologies are being used more and more to improve supply chain processes, the platform is the most important section by Component. Also, the segment is expected to grow a lot because market competitors are coming out with cheaper and more flexible pricing choices.

By Application

The market is divided into Counterfeit Detection, Payment & Settlement, Product Traceability, Risk & Compliance Management, and Others, based on how it is used. Counterfeit Detection is the most popular section because it is used a lot to check if a product is real or not. Anti-counterfeiting blockchain systems use barcodes to keep track of products as they move through the supply chain. This makes sure that customers get real goods.

By Industrial Vertical:

The market is divided into Retail and Consumer Goods, Healthcare and Lifesciences, Manufacturing, Oil and Gas, Logistics, and Others, based on the type of industry. Retail and Consumer Goods are the most important part of the market and make up the biggest share. The section is growing because retailers are using Blockchain Supply Chain technology more and more to track products, make payments and settlements, and find fakes.

By Region:

• North America is known to have the most modern infrastructure and use of technology. The biggest factor is how the main players in the blockchain technology solutions business in this region act as a whole. Organizations across industry verticals, such as manufacturing, healthcare, retail and consumer goods, and logistics, provide essential growth opportunities for vendors.
• North America commanded the global market and is anticipated to remain aggressive during the blockchain in the retail market forecast period due to the presence of major market players and on-going developments in blockchain technology. The main thing that is expected to drive market growth in this area in the coming years is the fact that stores are becoming more worried about data security.
• For instance, the Government Accountability Office says that more than 70 breaches happen every day at U.S. government departments like the Army and the IRS. Retailers in the area spend millions of dollars each year on data security by putting up large firewalls, hiring world-class hacking experts, and taking other steps. 
• A study by the NRF (National Retail Federation, USA) shows that by the end of 2019, 80% of retailers expect to have adopted point-to-point encryption, which protects card data while it is being sent. And 89% of them will have used tokenization, which keeps information in systems safe. According to BakerHostetler, 38% of data protection incidents at U.S. companies in 2019 were caused by phishing.

Scope of Report:

Key Market Players:

Top companies are included:

• IBM (US)
• Microsoft (US)
• SAP (Germany)
• AWS (US)
• Oracle (US)
• Huawei (China)
• Guardtime (Estonia)
• TIBCO Software (US)
• Bitfury (The Netherlands)
• Interbit (Canada)
• Auxesis Group (India)
• VeChain (China)
• Chainvine (UK)
• Digital Treasury Corporation (China)
• Datex Corporation (US)
• OpenXcell (US)
• Algorythmix (India)
• BlockVerify (UK)
• Applied Blockchain (UK).

• IBM

The International Business Machines Corporation, also known as "Big Blue," is an American global technology company with its headquarters in Armonk, New York, and operations in more than 175 countries.

They provide services such as Cloud, Mobile, Cognitive, Security, Research, Watson, Analytics, Consulting, Commerce, Experience Design, Internet of Things, Technology support, Industry solutions, Systems services, Resiliency services, Financing, and IT infrastructure

• Microsoft 

Microsoft Corporation is a multinational American technology company based in Redmond, Washington, United States. The Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers are Microsoft's most well-known software products.

They provide services like Business Software, Developer Tools, Home & Educational Software, Tablets, Search, Advertising, Servers, Windows Operating System, Windows Applications & Platforms, Smartphones, Cloud Computing, Quantum Computing, Future of Work, Productivity, AI, Artificial Intelligence, Machine Learning, Laptops, Mixed Reality, Virtual Reality, Gaming, Developers, and IT Professional

• SAP 

SAP's mission is to help the world operate more efficiently and improve people's lives. Their commitment is to innovate in order to help consumers operate at their peak. SAP is committed to assisting every client in becoming the best-run business possible. Their engineering solutions stimulate innovation, promote equality, and disperse opportunity across cultures and borders. Together, with their customers and partners, They are able to transform industries, develop economies, elevate societies, and preserve the environment.

They provide ERP, Financials, Business Intelligence, Procurement, HCM, SCM, business, planning, efficiency, sustainability, innovation, analytics, reporting, and dashboarding

• AWS

Launched in 2006, Amazon Web Services (AWS) began providing businesses with essential infrastructure services in the form of web services -- what is now commonly referred to as cloud computing. The greatest advantage of cloud computing and AWS is the ability to leverage a new business model and convert fixed infrastructure costs into variable costs. No longer must businesses plan and acquire servers and other IT resources weeks or months in advance. Using AWS, businesses can leverage Amazon's expertise and economies of scale to access the resources they need when they need them, resulting in quicker and less expensive results.

• Oracle 

Oracle Cloud Infrastructure provides increased efficiency, security, and cost savings. It is designed to facilitate the migration of workloads from on-premises systems to the cloud, as well as between the cloud, on-premises, and other clouds. Oracle Cloud applications provide business leaders with contemporary applications that assist them in innovating, achieving sustainable development, and becoming more resilient. 

Their  work not only revolutionizes the business world, but also helps governments defend themselves and advances scientific and medicinal research. Millions of nonprofits and businesses of all sizes use their tools to streamline supply chains, humanize HR, rapidly transition to a new financial plan, and connect data and people around the globe.  

They provide services enterprise, software, applications, database, middleware, fusion, business intelligence, Primavera, PeopleSoft, EPM, BEA, Hyperion, Retek, Utilities, On-Demand, server & storage systems, BPM, solutions for communications industry, ERP, CRM, CRM On Demand, JDE, and Siebel.

Market Segmentation

By Component: 

• Platform 
• Services 

By Application

• Detection of fakes 
• Payment and settlement 
• Product traceability 
• Risk and compliance management 
• Others

By Industrial Vertical:

• Retail and Consumer Goods
• Healthcare and Life Sciences 
• Manufacturing 
• Oil and Gas 
• Logistics 
• Others

Based on Region:

• North America
  • US
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • UK
  • Nordic Countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia-Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America

Conclusion:

Blockchain increases the efficiency of global supply channels by enabling companies to conduct transactions directly and without third parties. Additionally, it facilitates a greater integration of financial and logistics services, allowing for a greater collaboration on data among stakeholders. 

In 2022, the Blockchain for Supply Chain market was worth USD 569.05 million. By 2030, it is expected to be worth USD 16.47 billion, which means it will have grown at a CAGR of 52.3% from 2023 to 2030.

This market is growing because there is more demand for e-commerce, more demand for more secure transactions in the supply chain, and a need for more openness in the supply chain. The study on the Global Blockchain Supply Chain Market looks at the market as a whole. The study gives an in-depth look at the market's most important segments, trends, drivers, restraints, competitive landscape, and other factors that have a big impact on it.