Blockchain is a distributed peer-to-peer (P2P) technology combining a network, a shared ledger, and digital transactions. Blockchain technology when used in supply chain management (SCM) aids in the resolution of various problems faced during product transportation. The blockchain integrates the information sharing within enterprises and thus ensures transparency at all levels of SCM. Presently there are no protocols in place to address the problems that may arise when using blockchain technology. Interoperability is one of the many critical aspect that allow businesses to securely exchange information and data with suppliers, vendors, and distributors.
Blockchain technology is gaining huge popularity in SCM and retail. In addition, the rising need for supply chain transparency and the growing demand for better and enhanced protection of supply chain transactions are the factors driving the blockchain in supply chain market growth.
COVID-19 Impact on Blockchain in Supply Chain Market
The outbreak of COVID-19 across the globe has moderately impacted the global blockchain in supply chain market. This is mainly due to the lockdown restrictions like curfews imposed by various governments in most countries and the increase in business insurance prices across the globe. Despite the lockdown restrictions, the blockchain in supply chain market has found its way to upswing its recessionary curve with new strategies and methods. For example, blockchain in supply chain is greatly used in the manufacture of COVID-19 vaccines worldwde. Thus, the blockchain in supply chain has been affected moderately due to the coronavirus outbreak.
Blockchain in Supply Chain Market Trends and Developments
The companies operating in the global industry are executing and adopting various growth strategies and business tactics such as company collaborations, partnerships, business expansion, product launches, and others to obtain a leading position in the global industry, which is predicted to drive the global blockchain in supply chain market growth in the upcoming years.
In June 2019, MIMOS Berhad, the National applied R&D Centre in Malaysia, entered into a collaboration with Oracle, an American multinational computer technology corporation, to leverage blockchain technology for trust and greater transparency. MIMOS approached Oracle to use its Oracle Blockchain Platform to streamline various processes with an aim of broadening its experimentation and improving the ease of doing business in Malaysia.
In October 2019, IBM, an American multinational technology corporation, announced the launch of ‘Sterling Supply Chain Suite,’ a new supply chain service based on open-source software acquired from Red Hat and IBM’s own blockchain platform. Through the use of open Application programming interface (APIs), the new Supply Chain Suite allows manufacturers, distributors, and retailers to integrate their own data and networks.
In July 2021, Global Shipping Business Network (GSBN), the Hong Kong-incorporated consortium, announced the launch of its blockchain-enabled operating system. This system is specifically designed to modernize and improve global trade efficiency in China. The adoption of blockchain technology is a part of China’s push to digitalize its industries, including logistics & supply chains, to ensure that the nation continue to work as effectively and efficiently as possible.
Forecast Analysis of Global Market
The global blockchain in supply chain market is projected to witness an exponential growth during the forecast period, owing to the rising need for automation supply around the world. In addition, the lucrative rise in the number of smartphine users and mobile subscribers worldwide has led to a major portion of the population purchasing goods & services using smartphones and other gadgets, which is expected to create huge growth opportunity for the global market in the coming future. Conversely, the lack of knowledge related to blockchain technology and a shortage of skilled labors are the factors expected to hamper the market growth in the projected timeframe.
The increasing demand for supply chain transparency and the benefits associated with blockchain supply chains, such as provenance tracking, cost reductions, the avoidance of burdensome record-keeping, and customer trust are the significant factors and blockchain in supply chain market trends estimated to bolster the growth of the global market in the coming future. According to a latest report published by Research Dive, the global blockchain in supply chain market is expected to garner $14,884.4 million during the forecast period (2021-2028).
Regionally, the Asia Pacific is estimated to observe the fastest growth in the global industry over the forecast period, owing to the implementation of latest technology coupled with the increasing shift of APAC organizations toward agile and leaner supply chains. Some of the key players functioning in the global market include IBM, SAP SE, Microsoft, Oracle, Guardtime, Huawei, TIBCO Software, Interbit, Bitfury, and AWS.