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The global blockchain in retail market size was USD 126.8 million in 2020. The market is projected to grow from USD 172.2 million in 2021 to USD 2,082.8 million in 2028 at a CAGR of 42.8% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with blockchain in retail witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a higher growth of 34.5% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Blockchain in retail solutions provides customer services such as record time service, traceability, real time information and on time delivery information to retailers. Further, technology assures authenticity, product safety, quality, and reliability along with supply chain partners to know about the exact location of their products.
The increasing demand for the blockchain in retail from end-users such as logistics and supply chain are anticipated to drive the demand for solution in retail. Faster mode of transactions and enhanced transaction transparency based solutions in logistics industry, are few major factors that are expected to create market opportunities for key players. Also, companies in the market are focused on expanding their business units across the globe. For instance,
Blockchain in Retail Positively Impacted due to Increased Adoption of Ledger Technology
The outbreak of COVID-19 has been triggering economic disruptions and social stress across the world. With the closure of manufacturing units and production facilities, across the globe, the unemployment rate has increased in countries. As the pandemic continues, it has posed an exceptional challenge for end-use organizations to spend over blockchain in retail solutions. Organizations leverage solutions to optimize existing business operations and improve transparency across the supply chain.
COVID-19 had slight impact on retail sectors. Also, various industries across the globe has started adopting distributed ledger technology and smart contracts, enabling industries, large enterprises and SME’s to secure supply chain records and bring transparency across the supply chain. Major players innovate blockchain in retail solutions to enhance the supply chain among various industries. For instance,
The investment for blockchain in retail has been slightly impacted by COVID-19 pandemic. For instance, according to the IDC blockchain spending report, goods and asset management has received 8.4% and trade finance and post trade received 9.7% of investment in 2020. The spending done on goods and assets management clearly indicates that the COVID-19 has drastically impacted the supply chain management during the pandemic. Despite pandemic disruption across the world DLT is expected to gain traction across various industries including logistics, manufacturing, professional, customer services and others.
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Adoption of Blockchain Technology in Supply Chain and Inventory Management are Emerging Market Trends
The integration of distributed ledger technology in supply chain and inventory management is considered as one of the key market trends. The technology assists in improving visibility and compliance, reduce paperwork and administrative costs, and increase traceability of material supply chain transparency. Further, the use of distributed ledger technology across supply chain and inventory management will ensure that corporate standards are met and reduce potential public relation risk for supply chain mal practice.
The inventory solution for supply chain management allows retailers, distributions centers, suppliers, and other partners to connect to each other by a record of every transaction that takes place. Further, the technology enables more accurate and transparent end-to-end tracking in supply chain. Also, key players are collaborating to enhance their market presence. For instance,
Improved Transaction Transparency to Aid Market Growth
The blockchain in retail facilitates low cost, secure and fast payments processing services with the use of encrypted distributed ledgers technology. This helps in verification of the transactions in real time without the need for intermediaries such as clearing houses and banks. The retail industry has witnessed huge surge in digital payments that has aided to the demand for the distributed ledger technology. Also, the adoption of technology in supply chain will improve efficiency, traceability, enhanced security, and greater transparency. For instance, in December 2020, New Generation Computing Inc. and Loyalty Inc. launched supply chain traceability solution that allows retailers and owners to document the chain of custody from origin to importer of record. Similarly, in January 2020, Accenture launched procurement solution. The solution brings suppliers and buyers team together in same platform to easily and securely share the data.
Customer and Identity Management in Retail to Fuel Market
The distributed ledger technology has become more accessible to customer. The distributed ledger technology helps in automating, identifying and managing disrupting their daily workflows including payroll systems, handling financial services transaction. This technology is used for staff, maintaining employee’s personal data, onboarding, verifying employment history, and running background check. It also provides the real-time data of their customers and employees. The technology in retail helps in tracking their customers and employee’s data in real time. For instance,
Further, customer and identity management using blockchain technology across various industries is one of the major driving factor for the market growth. Blockchain in customer management enables industries such as logistics, manufacturing, banking, and government with enhanced security, better transparency, and improved user privacy control to build better customer relation between the companies and their customers.
Lack of Technical Understanding and Blockchain Technology to Hinder Market Growth
Rapid digitization among various industries has increased cyber attacks and cyber threats. Enterprises across the globe are facing problem for skilled professionals to overcome the risk factors. This has further resulted in the slow adoption of technology and is anticipated to hinder the market growth.
In addition, the adoption of distributed ledger technology has increased across various industries including manufacturing and healthcare. Further, this has increased the demand for skilled professionals across the globe. Lack of skilled labors and distributed ledgers technology is anticipated to restrict the market growth.
Platform/Solutions to Dominate Market Owning to Rising Demand
Based on component, the market is categorized into platform/solutions and services.
The platform/solutions segment is expected to lead the market during the forecast period. The increasing demand for solutions across industries, including retail and others is driving the market size. IBM Corporation, Oracle Corporation, and Accenture invest in developing advanced platform/solutions. Also, the companies are focusing on integrating solutions with artificial intelligence (AI), IOT, and others to offer real-time interactive experience.
The services are likely to witness rapid growth during the forecast period owing to the rising demand for safer way to keep data renewed and record activity.
Increasing Adoption of Private Blockchain to Propel Market Growth
Based on type, the market is categorized into public blockchain, private blockchain, and consortium blockchain.
The private distributed ledger technology is expected to hold maximum blockchain in retail market share during the forecast period. The adoption of the private solution is increasing in the retail, industries. Also, the low transactional fee of private blockchain is also fueling the market growth.
Public blockchain is expected to gain traction due to their increasing adoption across retail. The increasing adoption of solution by public organization to design the platform/solutions for transparent and real time view is anticipated to drive the blockchain in retail industry trends.
Also, consortium is expected to develop with significant growth rate during the forecast period. The industry growth is owing to rising retail projects across developed nations such as the U.S., Germany, and others.
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Rising Popularity of Blockchain Technology among Supply Chain to Gain Traction during Forecast Period
By application, the market is segmented into supply chain management, food safety management, customer data management, identity management, compliance management, billing transaction processing, and others. Among application, supply chain management is anticipated to fuel the growth of the market during the forecast period. The increasing adoption of technology for allowing data to be shared easily across organizations and the rising number of security concerns is expected to drive the growth of segment. Supply chain management solutions are used for process of organizing, acquiring and using customer data for better understanding of end users. Moreover, growing logistics and supply chain management will create better market opportunities for key vendors in future.
North America Blockchain in Retail Market Size, 2020 (USD Million)
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Geographically, the market is segmented across five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.
North America captured the maximum market share in 2020. The region has made a substantial investment in blockchain in retail services and technology to maintain its position in the global market. The deployment of technology has given rise to the adoption of advanced technologies such as smart payment, contracts, and others. Tech-giants, including IBM Corporation, Oracle Corporation, Accenture PLC, are among the early adopters of technology in retail and are far ahead in its implementation. For instance, according to IDC, the U.S. led in technology spending with spending of USD 2.6 million in 2021.
Companies in Europe are increasingly embracing the concept of blockchain technology, as the region is expected to develop with significant growth rate. Investment by key players in the market, government projects, and increasing funding in research and development activities are a few of the driving factors for the region’s growth.
The Asia Pacific market growth is led by China, South Korea, Japan, and India. The countries in the region use exhaustive measures to adopt advanced technologies and implement distributed ledger technologies in their retail sector and in supply chains. For instance, in December 2020, Singapore government unveiled USD 8.90 million program for adoption of blockchain application. Further, these government-driven investments and funding aim to make Asia Pacific dominant in the global market.
In region such as Latin America and the Middle East and Africa, the adoption of technology is supported by the rising adoption of digital technologies and government initiatives. For instance, in July 2018, International Finance Company invested USD 3 million Twiga Foods a B2B logistics that helps in connecting small scale farmers to shopkeepers in East Africa.
Emphasis of Key Players on Partnerships and Acquisition to Strengthen Competition
Oracle Corporation, Accenture Plc, IBM Corporation, Tata Consultancy Services, Amazon Web Services, Inc., Auxesis Services and Technologies (P) Ltd. Guardtime, Sofocle Technologies, Capgemini Technology Services India Limited, and others are some of the major players in the market. Key players in the market are currently deploying advanced solutions integrated with artificial intelligence (AI) and Internet of Things (IOT), smart contracts, among others. Additionally, the rising market competition is forcing key market players to focus on the acquisition strategy for strengthening their positions. For instance,
An Infographic Representation of Block chain in Retail Market
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The market research report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry and market trends and analyzes technologies deployed at a rapid global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.
Value (USD Million)
Component, Type, Application, and Region
According to Fortune Business Insights, the global market is expected to reach USD 2,082.8 million by 2028.
Fortune Business Insights says that the market value stood at USD 126.8 million in 2020.
The market is expected to grow at a CAGR of 42.8% in the forecast period (2021-2028).
By type, consortium blockchain is expected to lead the market during the forecast period.
Improved transaction transparency is anticipated to aid the growth of the market.
IBM Corporation, Oracle Corporation, Accenture, Tata Consultancy Services, Amazon Web Services, Inc., Auxesis Services and Technologies (P) Ltd., Guardtime, Sofocle Technologies, and Capgemini are the top companies in the market.
By application, the supply chain management holds the major market share.
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