Blockchain In Retail Market | Contrive Datum Insights

Market Overview:

The Global Blockchain In Retail Market Size Was Valued At USD 0.24 Billion In 2022 And Is Projected To Reach USD 43.79 Billion By 2030, Growing At A CAGR Of 91.67% From 2023 To 2030.

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It is clear that blockchain technology is here to stay, and it is already changing every industry. In retail, technology is helping a lot with everything from managing the supply chain to making customer loyalty programs better. As more retail sales happen online, stores are finding it hard to change how they deliver products to match how customers search for and buy products, which is always changing. For example, blockchain technology helps retailers store information about their suppliers better, makes payments and contracts easier, and even makes it harder to make fake goods by making it easier to tell if a product is real or not.

In retail solutions that use blockchain, customers can get fast service, know where their items are, get information in real time, and know when their items will be delivered. Technology also makes sure that products are real, safe, of good quality, and reliable. It also lets supply chain partners know where their products are at all times.

End users, like logistics and supply chain, who want to use blockchain more are likely to drive the need for solutions in retail. In the logistics industry, faster and more open ways to do business are two of the main things that are expected to open up new markets for key players. Also, businesses on the market are trying to expand their business units all over the world.

COVID-19 Impact:

The COVID-19 pandemic has had a small effect on the amount of money invested in blockchain for retail. For example, the IDC Blockchain Spending Report says that in 2020, 8.4% of investment went to goods and asset management and 9.7% went to trade finance and post-trade. The amount of money spent on managing goods and assets shows that COVID-19 has had a big effect on supply chain management during the pandemic. Even though there are problems all over the world, DLT is expected to grow in many industries, such as logistics, manufacturing, professional services, customer service, and others.

Market Dynamics:

Market Trends:

• Adoption of Blockchain Technology in Supply Chain and Inventory Management 

One of the most important market trends is the use of distributed ledgers in the supply chain and inventory management. The technology helps improve visibility and compliance, cut down on paperwork and administrative costs, and make it easier to track where things come from in the supply chain. Also, using distributed ledger technology in both the supply chain and inventory management will make sure that corporate standards are met and reduce the risk of bad PR from supply chain mistakes.

The inventory solution for supply chain management lets retailers, distribution centers, suppliers, and other partners connect with each other by keeping a record of every transaction. Also, the technology makes end-to-end tracking in the supply chain more accurate and clear. Also, key players are working together to improve their presence in the market.

Driving Factors:

• Improved Transaction Transparency to Aid Market Growth

With encrypted distributed ledgers technology, the blockchain in retail makes it possible to process payments quickly, safely, and at low cost. This lets the transactions be checked in real time without the need for clearing houses or banks to be in the middle. The retail industry has seen a huge rise in digital payments, which has helped the demand for distributed ledger technology. Also, putting technology into the supply chain will make it more efficient, easier to track, safer, and more open. For example, in December 2020, New Generation Computing Inc. and Loyalty Inc. launched a supply chain traceability solution that lets retailers and owners document the chain of custody from origin to importer of record. In the same way, Accenture released procurement solution in January 2020. The solution brings together the teams of both suppliers and buyers on the same platform so that they can easily and safely share data.

• Customer and Identity Management in Retail to Fuel Market

Distributed ledger technology is now easier for customers to use. The distributed ledger technology helps automate, find, and manage problems that could affect their daily workflows, such as payroll systems and transactions for financial services. This technology is used for staff, like keeping track of employees' personal information, getting them started, checking their employment history, and doing background checks. It also tells them about their customers and employees in real time. Retail stores use technology to keep track of their customers and employees in real time. Also, one of the biggest things driving the growth of the market is the use of blockchain technology in many different industries for customer and identity management. When it comes to customer management, blockchain gives industries like logistics, manufacturing, banking, and government better security, more transparency, and more control over user privacy. This helps companies build better relationships with their customers.

• Amplified and Refined Transaction Transparency

Putting blockchain technology into the retail sector has a lot of benefits, such as making payment processing more secure, cheaper, and faster through coded distributed ledgers. With this technology, transactions can be checked in real time without the need for middlemen like banks or clearinghouses. As the number of digital payments in retail keeps growing, there is a growing need for distributed ledger technology. When blockchain technology is used in retail, it should make things more efficient, traceable, safe, and clear.

• Increasing Adoption of Smart Contracts to Stimulate Growth

During the period of the forecast, the global blockchain in retail market is expected to grow because more and more people are using smart contracts. Smart contracts let computer code run when certain conditions are met. It is expected to be widely used in the telecom industry because it makes internal tasks like billing, supply chain management, and inventory management easier to automate. Both online and offline payment processes can be made easier to handle with the help of smart contracts. It can save time and money for businesses by cutting out the merchant who charges extra for transaction authentication.

Restraining Factors:

• Lack of Technical Understanding and Blockchain Technology 

Since many industries are digitizing quickly, there are more cyberattacks and cyber threats. Risk factors are making it hard for businesses all over the world to find skilled workers. This has also made people slow to adopt new technologies, which is expected to slow the growth of the market.

Also, the use of distributed ledger technology has grown in many different fields, such as manufacturing and healthcare. Also, this has made people all over the world want more skilled workers. It is expected that the growth of the market will be slowed down by a lack of skilled workers and distributed ledgers technology.

• Cost

For retailers to use blockchain technology, they have to spend a lot of money on hardware, software, and infrastructure. Small stores might not have the money to invest in this technology, which could make it harder for it to be used.

• Security Concerns

Even though blockchain technology was made to be safe, it can still be attacked. Hackers could take advantage of flaws in the system to make the blockchain network less safe, putting retailers' data at risk.

• Regulatory Challenges

The rules for blockchain technology are still being worked out, and there is no set framework in place. Because of this uncertainty, retailers might be hesitant to use blockchain because they might not want to invest in a technology that could be slowed down by regulations in the future.

Opportunities:

• Increasing Transparency, Decreasing Fraudulence, and Improving Product Quality.

Blockchain technology has the potential to change the way people shop by making transactions safe, clear, and quick. Retailers can use Blockchain to track how products move from the source to the shelf. This increases transparency, cuts down on fraud, and improves the quality of the products. Also, retailers can improve their supply chains by being able to see stock levels, shipping times, and delivery status in real time. Also, Blockchain payment processing offers secure options that don't cost much. Retailers may even accept cryptocurrencies as payment, which reduces the chances of chargebacks and fraud.

• Increasing Customer Engagement and Loyalty

Blockchain can be used to make a decentralized loyalty program that rewards customers with cryptocurrency or other digital assets. This will make customers more loyal and increase their engagement with the program. Blockchain also helps retailers fight counterfeiting by making a record of a product's authenticity that can't be tampered with. This protects both retailers and customers from buying fake goods. Lastly, Blockchain helps retailers keep track of customer information in a safe and open way. This gives customers control over their information and who can see it.

Challenges:

In the retail industry, blockchain technology has a lot of potential to improve things like supply chain management, payments, and customer loyalty programs by making them more open, secure, and efficient. Adoption is a big problem for this revolution. Many retailers may not understand its benefits or be reluctant to buy new equipment. Also, integrating blockchain with existing retail systems requires major changes that require major changes from the way things are set up now.

When more than one party is involved in a transaction, different blockchain platforms and protocols can make it hard for them to work together. As of now, blockchain technology isn't flexible enough to handle the high volume of transactions in retail markets, and there aren't any clear rules about how it can be used in retail. Even though blockchain is inherently safe, sensitive information that is stored on public blockchains may raise privacy concerns. Implementing blockchain technology can be expensive, so retailers may be reluctant to invest if they don't see a quick return on their money.

Strategic Development:

• In July 2019 - IBM, Westpac, and the Scentre Group started a new blockchain technology pilot project for Lygon. The launch will make it easier for businesses to manage and get the bank guarantees that retail property leases require.
• In May 2019 - Salesforce.com, Inc. released Salesforce Blockchain, which lets businesses share data across a trusted network of partners and third parties. Companies can make apps, workflow, and a DLT network by using Salesforce Blockchain.
• In July 2019 - Nestle worked with OpenSC, a blockchain platform, to build the distributed ledger system. This is different from the work Nestle is doing with IBM Food Trust blockchain, which is still going on.
• In June 2019 - The food store Dixy, which is the third largest food retailer in Russia, used blockchain technology to improve its corporate finance system. The Moscow-based retailer has used blockchain to help suppliers and factoring companies work together. Factoring firms are third parties that help businesses get money by buying their invoices at a discount.

Key Vendors:

Top market players are

• IBM Corporation (New York, U.S.)

IBM, which stands for International Business Machines Corporation, makes computer solutions. The company offers business resiliency, strategy, and design solutions, as well as application, technology consulting and support, process design and operations, cloud, digital workplace, and network services. IBM has clients all over the world.

• Oracle Corporation (Texas, U.S.)

Oracle sells products and services that help IT (information technology) environments for businesses. The enterprise software company offers a variety of cloud-based applications and platforms, as well as hardware and services, to help companies improve their processes.

• Accenture Plc (Dublin, Ireland)

Accenture PLC offers services and solutions in the areas of management consulting and technology consulting. The company works with clients all over the world to provide a wide range of specialized services and solutions. Accenture is a group of companies that work together to offer consulting, technology, outsourcing, and strategic alliances.

• Tata Consultancy Services (Maharashtra, India)

Tata Consultancy Services (TCS) is a company that provides IT services, business consulting, and business solutions in about 55 countries. Cyber security, automation and AI, the cloud, and engineering and industrial services are some of the things it offers. TCS has an integrated portfolio of business, technology, and engineering services and solutions that are led by consulting and powered by cognitive technology.

• Amazon Web Services, Inc. (Washington, U.S.)

When it started up in 2006, Amazon Web Services (AWS) gave businesses access to key infrastructure services through web services. This is now what most people call "cloud computing." The best thing about cloud computing and AWS is that they allow you to use a new business model and turn fixed costs for infrastructure into variable costs.

• Cisco Systems Inc. (California, U.S.)

When it started up in 2006, Amazon Web Services (AWS) gave businesses access to key infrastructure services through web services. This is now what most people call "cloud computing." The best thing about cloud computing and AWS is that they allow you to use a new business model and turn fixed costs for infrastructure into variable costs.

• Auxesis Services and Technologies (P) Ltd. (Mumbai, India)

Auxesis is a Blockchain protocol company that uses its own technology to help organizations set up and run high-performance Blockchain networks and Dapps. Auxesis is also the company behind the open-source Auxledger project and works hard to make Blockchain technology better.

• Capgemini SE (Paris, France)

Capgemini SE (also called "Capgemini") offers services in IT, consulting, and outsourcing. The company also provides digital services, technology solutions, cloud services, solutions for artificial intelligence, and engineering and cybersecurity services. It works with many different industries, such as banking and capital markets, manufacturing and industrial products, aerospace and defense, agriculture, automotive, consumer and retail, electronics and high tech, energy and utilities, government and public sector, healthcare and life sciences, and transportation and distribution.

Segmentation Analysis:

By Component Outlook:

The market is split into platform/solutions and services based on what it sells.

During the time frame of the forecast, the platform/solutions segment is expected to be the market leader. The size of the market is being driven by the growing demand for solutions in industries like retail and others. IBM, Oracle, and Accenture all put money into making more advanced platforms and solutions. Also, the companies are putting a lot of effort into integrating solutions with AI, IoT, and other technologies so they can offer interactive experiences in real time.

During the predicted time period, the services are likely to grow quickly because more people want safer ways to keep data up to date and keep track of what they do.

• Platform/ Solutions
• Services
• Other

By Type Outlook:

The market is split into public blockchain, private blockchain, and consortium blockchain based on the type of blockchain.

During the time frame of the forecast, the private distributed ledger technology is expected to have the largest share of the blockchain retail market. Private solutions are being used more and more in the retail industry. The growth of the market is also helped by the fact that private blockchain has low transaction fees.

Due to their growing use in retail, public blockchain is likely to gain popularity. The blockchain in retail industry trends are likely to be driven by the fact that more and more public organizations are using solutions to design platforms and solutions that allow for a clear and real-time view.

During the forecast period, consortium is also expected to grow at a very fast rate. The growth of the industry is due to more retail projects in developed countries like the U.S., Germany, and others.

• Public Blockchain
• Private Blockchain
• Consortium Blockchain
• Other

By Application Outlook:

By application, the market is divided into supply chain management, food safety management, customer data management, identity management, compliance management, billing transaction processing, and others. The growth of the market is expected to be driven by supply chain management over the next few years. The growth of this segment is likely to be driven by the growing use of technology that makes it easy for organizations to share data and the growing number of security concerns. Supply chain management solutions are used to organize, get, and use data about customers to learn more about end users. Also, as logistics and supply chain management improve, key vendors will have more market opportunities in the future.

• Supply Chain Management
• Food Safety Management
• Customer Data Management
• Identity Management
• Compliance Management
• Billing Transaction Processing
• Others

By Organization Outlook:

On the basis of Organization Size, the Global Blockchain in Retail Market is classified into Small and Medium-Sized Enterprises and Large Enterprises.

• Small and Medium-Sized Enterprises
• Large Enterprises

Regional Insights:

North America had the biggest share of the market in 2020. The area has put a lot of money into blockchain in retail services and technology to keep its place on the world market. Smart payments, contracts, and other high-tech things have become more popular because of technology. Some of the first retailers to use technology were tech giants like IBM Corporation, Oracle Corporation, and Accenture PLC, and they are still far ahead of the curve when it comes to using it. IDC says that in 2021, the U.S. spent more on technology than any other country, at USD 2.6 million.

Companies in Europe are becoming more and more interested in blockchain technology because the region is expected to grow quickly. Some of the things that are helping the region grow are investments by key players in the market, government projects, and more money going into research and development.

The growth of the Asia-Pacific market is being driven by China, South Korea, Japan, and India. Many steps are taken by the countries in the area to adopt new technologies and use distributed ledger technologies in their retail and supply chains. For example, the government of Singapore announced in December 2020 that it would spend USD 8.90 million on a program to help people use blockchain apps. Also, these investments and funding from the government are meant to make Asia-Pacific the biggest market in the world.

In places like Latin America, the Middle East, and Africa, people are getting used to new technologies with the help of digital technology and government programs. In July 2018, for instance, the International Finance Company invested $3 million in Twiga Foods. Twiga Foods is a business-to-business (B2B) logistics company that connects small farmers in East Africa with shop owners.

• 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

Scope of Report:

Conclusion:

• The market research report shows the top regions around the world so that the user can learn more about them.
• The report also looks at the latest industry and market trends and analyzes technologies that are being used quickly around the world.
• It also talks about some of the things that help the market grow and things that slow it down.