The Global Blockchain Supply Chain Market Growth, COVID-19 impact and Forecast (2021-2025)
Global blockchain supply chain market is segmented based on blockchain type as public blockchain, private blockchain, consortium blockchain and hybrid blockchain; Component type based on platform and services; based on applications as marketing & advertising, drugs & healthcare, energy & utilities, commerce & retail, logistics, environmental services and others; based on geography as APAC, Europe, North America, and ROW.
Introduction
The blockchain is a distributed peer-to-peer technology and it is a combination of the shared ledger, network, and digital transaction. When blockchain technology is used in supply chain management, it helps in overcoming the issues faced during the transportation of the products.
As this technology is comparatively new, no regulatory protocols that might manage issues arising while using this technology. Moreover, the lack of awareness about it and strict regulations might also limit its growth.
The blockchain technology acts as an open ledger, such that every transaction on the network is recorded and is made available for all the entities or participants involved in the network to see and verify them. Therefore, blockchain eliminates the need to transfer information between organizations via mail or any other communication media.
Table of Contents
Market Overview
The global blockchain supply chain market is expected to grow to $2135.08 million by 2025 at a CAGR of 53.2%
The most common use cases for blockchain within organizations include supply chain management and the Internet of Things (IoT).
The technology has also proven itself to have great promise in the field of digital currency and payments, with the most successful cryptocurrencies in the world built using the platform and many businesses using some type of blockchain system for inter-company transactions.
Key Trends
Interoperability is another crucial factor that facilitates companies to share data and information with suppliers, manufacturers, and vendors with greater security.
Forward-thinking companies are planning to invest when blockchain gets to the point that it can deliver value. However, blockchain has yet to provide full value beyond food or pharmaceutical applications.
Key Market Players
The market is dominated by global vendors like IBM Corporation, Microsoft Corporation, Oracle Corporation, SAP, and AWS and Huawei.
Growth Drivers and Challenges
The integration of blockchain technology with an SCM system prevents data manipulation, which is expected to be one of the biggest driving factors for the overall growth of the blockchain market.
The increasing need for supply chain transparency coupled with the rising demand for enhanced security of supply chain transactions is primarily driven the market value
Blockchain technology is still in the nascent stages with only a few engineers well versed in the technology. This makes the technology highly expensive and complex in implementation.
System sensors and data pools may not be compatible, making data access difficult at best, and blockchain is susceptible to the problem of too much data.
The lockdowns imposed as a result of the COVID-19 outbreak has shut down economies and is impacting every aspect of the supply chain in North America. This has also caused various industries to move their normal manufacturing processes to manufacture essential medical supplies, PPE kits, etc.
Although 78% of them are experiencing a negative short-term impact, 17% are noticing positive effects, and only 5% say they are not affected in any way. COVID-19 finally forced many companies and entire industries to rethink and transform their global supply chain model.