PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1570559
PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1570559
The Global Blockchain For Supply Chain Traceability Market, valued at USD 2.1 billion in 2023, is forecasted to grow at a CAGR of over 31.9% from 2024 to 2032 due to the surging demand for transparency and accountability in supply chains. Both businesses and consumers are increasingly prioritizing product authenticity, ethical sourcing, and adherence to regulations. Blockchain technology, with its decentralized and immutable ledger, captures every transaction in the supply chain, ensuring a transparent audit trail. This level of transparency not only authenticates the origin of goods but also monitors compliance with standards and upholds ethical practices.
The industry is also witnessing a notable shift towards collaboration and partnership. Companies are realizing that to fully leverage the advantages of blockchain, collaboration with all supply chain stakeholders, from suppliers and manufacturers to distributors and retailers is essential. Through industry consortia, these stakeholders can collaboratively develop and implement blockchain solutions that tackle shared challenges and generate mutual benefits. Such alliances not only standardize blockchain protocols and boost interoperability but also expedite the technology's adoption. In November 2021, NSF, in collaboration with industry experts, launched NSF Verify, a groundbreaking agri-food supply chain system. This platform offers sophisticated animal identification and traceability, meticulously tracking each animal's journey from birth to market.
The industry is segmented into component, deployment model, organization size, technology, application, end user, and region.
Based on deployment model, the blockchain in supply chain traceability market is categorized into cloud-based and on-premises solutions. The cloud-based segment is projected to reach USD 19.2 billion by 2032. The cost-effectiveness of cloud-based models significantly drives their adoption in the market. By opting for cloud solutions, businesses sidestep hefty capital investments in hardware, software, and maintenance. Instead, they can adopt a pay-as-you-go model, incurring costs only for the resources they utilize.
Divided into platforms and services, the market's platform segment dominated in 2023, holding over 63% market share. The heightened emphasis on regulatory compliance propels the adoption of blockchain platforms for supply chain traceability. Regulatory bodies, especially in sectors like pharmaceuticals, food and beverage, and luxury goods, are tightening regulations on product safety and ethical sourcing.
In 2023, North America commanded a notable 43% share of the blockchain in supply chain traceability market. With regulatory demands escalating, especially in pharmaceuticals and food sectors, companies are turning to blockchain solutions to uphold product safety and authenticity. The immutable nature of blockchain's ledger offers the transparency and traceability needed to meet regulations like the Drug Supply Chain Security Act (DSCSA) in the U.S.