ID: MRFR/ICT/6234-HCR | February 2021 | Region: Global | 100 pages
The global market for blockchain in retail is estimated to reach USD 1.76 billion by 2024 growing at a 78.49% CAGR during the forecast period 2018–2024. The growing adoption of blockchain technology by retailers to streamline business processes such as inventory management, database management, payment and order management, incorporate supply-chain visibility, and ensure product authenticity and safety are some of the major factors expected to promote the growth of the market in the coming years.
Blockchain technology that was initially introduced by Satoshi Nakamoto to serve as a public transaction ledger for the cryptocurrency bitcoin is poised to revolutionize the retail industry. Blockchain allows secure and quick and uninterrupted data transactions and consists of a peer-to-peer network, a distributed ledger for recording the transactions and a consesus mechanism to validate the transactions. This distributed ledger acts as a layer of trust for retailers and the supply chain trade partners offering visibility, tracebility, and transperency. The technology has immense potential to reinvent business functions and facilitate secured transactions across the retail industry. With the help of blockchain technology, retailers can streamline supply chain management, accounting processes, auditing, compliance and inventory by eliminating redundant database systems. Further, the blockchain technology helps the retail companies to ensure quality, reliability, authenticity, and product safety.
The blockchain technology unveils various potentials for retail organizations to address business challenges. One of the major challenge faced by retailers across the globe is accurate sales forecasting due to short product life cycles. However, with the implementation of blockchain solutions, the enterprises and their supply chain partners are able to utilize smart contracts to automate payments and orders, thereby promoting enhanced inventory management. An improved supply chain visibility allows greater operational efficiency and more accurate forecast preventing over-ordering and reducing lost sales due to out-of-stock items. Moreover, blockchain solutions permit consumers to scan codes inscribed on the product and access the product history and ownership details ensuring the product authenticity of luxury consumer goods. Supermarket and grocery stores are adopting blockchain solutions to increase the customer’s confidence in their organic product line by allowing the customers to track the journey of the products from the farm to the store. Several retailers offer customers with loyalty and reward points every year to increase customer satisfaction and reduce liabilities. However, consumers find it challenging to track the number of loyalty programs they are enrolled into due to which the loyalty points go unused. To counter this, retailers are now offering blockchain applications to target audience allowing them to redeem loyalty and reward points across various merchants and platforms such as iOS, Android, and web. This reduces liability and facilitates customer retention as well as limits the number of fraudulent activities.
However, procuring talent and expertise that better understand blockchain technology, interoperability among various blockchains, lack of standards, and integration of legacy systems with blockchain technology are some factors that may restrict the market growth in the coming years.
By type, the market has been segmented into public, private and consortium.
By platform, the market has been segmented into Bitcoin, Ripple, Ethereum, R3 Corda, Hyperledger Fabric, Multichain, Quorum and others
By organization size, the market has been segmented into Large enterprises and SMEs.
By application, the market has been segmented into compliance management, database management, auditing, payment management, inventory management, loyalty and rewards management, fraud management and others.
Global Blockchain in Retail Market, 2018–2024 (USD Million)
Source: MRFR Website Regional analysis
The market for global blockchain in retail is estimated to grow at a significant rate during the forecast period from 2018 to 2024. The geographic analysis of user activity monitoring market has been conducted for North America (US, Canada, and Mexico), Europe (the UK, Germany, France, and the rest of Europe), Asia-Pacific (China, Japan, India, the rest of Asia-Pacific), and the rest of the world (The Middle East & Africa, and South America).
At present, North America holds the largest market share owing to the presence of a large number of retail enterprises in the US, Canada, and Mexico. Increasing focus on personal identity, data control and online security for interactions between customers and retailers are driving the adoption of blockchain among retailers in North America.
Europeaccounts for the second largest market share owing to the growing adoption of blockchain in countries such as Germany, France and the UK.
Asia-Pacific accounts for the third largest market share and is expected to attain the highest growth due to the increasing adoption of blockchain technology in the retail industry.
The market in the Middle East and Africa is expected to achieve a substantial growth with growing investments by retail enterprises for implementation of blockchain solutions to streamline business operations.
The prominent players in the market of Global Blockchain in Retail are IBM Corporation, Microsoft Corporation, SAP SE, Amazon Web Services,Oracle Corporation, Bitfury USA Inc., Cisco Systems Inc., Cegeka, Auxesis Group, Blockpoint Systems, BlockApps, R3, Tata Consultancy Services Limited, Coin Sciences Ltd., and Cognizant.
The other market players include Coinbase, Bitpay, Blockverify (Venture Proxy Ltd), and Guardtime.
The prominent players keep innovating and investing in research and development to present a cost-effective product portfolio. There has been recent mergers and acquisitions among the key players, a strategy the business entities leverage to strengthen their reach to the customers.
Frequently Asked Questions (FAQ) :
The blockchain in retail market can thrive at 78.49% CAGR by 2024.
The blockchain in retail market can value at USD 1.76 Bn by 2024.
Cisco Systems Inc., Auxesis Group, and Cegeka are some reputed names in the blockchain in retail market.
Enterprises are actively deploying license management solutions; which cam prompt the global blockchain in retail market expansion.
The North America blockchain in retail market can surge due to the growing adoption of blockchain technology.