Blockchain in Retail Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 0.47 Billion |
| Market Size (2029) | USD 4.01 Billion |
| CAGR (2024 - 2029) | 52.92 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Blockchain in Retail Market Analysis
The Blockchain in Retail Market size is estimated at USD 0.47 billion in 2024, and is expected to reach USD 4.01 billion by 2029, growing at a CAGR of 52.92% during the forecast period (2024-2029).
- The increasing demand for transparency in the retail supply chain, the fast, frictionless transactions, and the demand for improved customer service are driving the blockchain in retail market growth.
- Blockchain technology empowers retail businesses to maintain transparent, secure record-keeping, track the provenance of goods, and provide a method to engage in secure transactions. In addition, blockchain technology in the retail sector helps store digital records safely and audibly, enabling a safe, speedy, and cost-effective transfer of assets. Thus driving the demand for blockchain in the retail segment.
- The advantages of blockchain to improve the value chain for the retail business are significant and have gained substantial traction over the past few years, thus positively impacting the market growth. By putting data and transactions on the digital ledger, the speed of transactions can be quicker, paper-based processes can be eliminated, goods can be traced across diverse supply chains, and fake goods can be filtered out.
- Moreover, consumer demand for fast, frictionless transactions is leading to sharp increases in mobile and online e-commerce fraud and associated costs. Blockchain technology is significantly enabling fast, frictionless, and secure transactions in the retail segment. Additionally, Blockchain efficiency in handling, securing, and decentralizing loyalty program data is also driving the adoption of blockchain in the retail segment. The technology facilitates the creation and transmission of points across programs and retailers.
- Additionally, the increasing retail theft drives the blockchain technology demand in the retail sector for fraud prevention and detection. For instance, according to the data from the National Retail Federation's 2022 Retail Security Survey, retail losses from stolen goods increased to USD 94.5 billion in 2021, up from USD 90.8 billion in 2020.
- The COVID-19 pandemic lowered consumers' financial potential, decreasing retail blockchain services and solutions sales. However, post-pandemic, retail industries started recovering from economic setbacks during the outbreak and are expected to provide significant opportunities for the growth of blockchain in the retail segment over the forecast period.
Blockchain in Retail Market Trends
Supply Chain and Inventory Management segment is expected to acquire major share.
- Blockchain technology is gaining significant traction in various retail operations, such as supply chains, loyalty programs, and payment processes, to prevent fraud, theft, and detection. For instance, Blockchain tokens can be used for optimization and enhanced fraud protection in loyalty programs. In addition, retailers are rapidly adopting blockchain technology to reduce and even prevent fraud in the supply chain through greater transparency and improved traceability of products.
- Further, due to the COVID-19 pandemic, retailers are rapidly moving towards online and omnichannel to provide enhanced customer experience. However, theft is continuously rising in all mediums, including in-store, e-commerce, and omnichannel, driving the demand for blockchain technology to prevent retail theft and fraud.
- \Moreover, retail theft is becoming a significant challenge for small and large retail enterprises, thus leading to the rapid adoption of blockchain technology in the retail sector. For instance, according to new data released by the U.S. Chamber of Commerce in September last year, Over half (56%) of small retail businesses said they have experienced theft from their stores in the past year.
- Such developments and increasing demand to prevent retail theft and fraud will significantly drive the market over the forecast period.
North America is Expected to Hold the Largest Market Share
- The North America region is expected to hold a significant share in the blockchain market owing to the early adoption of advanced technology, increasing demand to prevent retail theft coupled with the presence of major market vendors such as IBM Corporation, Oracle Corporation, Amazon Web Service Inc. (AWS), and SAP SE. Market vendors continuously innovate their blockchain solutions for the retail segment to stay ahead of the competition.
- For instance, Amazon Web Service Inc. (AWS) provides a highly reliable, scalable, low-cost infrastructure cloud platform, empowering regional retail businesses. Further, the company offers a blockchain network that allows retailers to communicate and authenticate rewards information faster and transparently without a central authority to manage rewards-related transactions amongst retailers.
- Moreover, retailers like Walmart are integrating blockchain technologies into their supply chains to streamline and maximize operational efficiency. Owing to the advantages offered, such as improved automation of the supply chain and reduced human interference to the minimum, coupled with high traceability, with the help of which one can track supplies in real-time through all the stages of the supply chain and save all the essential information on a decentralized ledger.
- Further, to retain the data authenticity generated by the retail industry, retail businesses in the region are rapidly moving toward the cloud; hence, its security is of utmost importance. The companies operating in blockchain in the retail market in the region are focusing on developing innovative technological solutions coupled with enhanced security features, thus driving the demand for blockchain in the retail market at a rapid pace in the North America region.
Blockchain in Retail Industry Overview
The market is fragmented, with many existing and new vendors developing solutions for small and large online and offline retailers. Moreover, the market players continuously indulge in new and innovative product launches for the retail segment, coupled with partnerships, mergers, and acquisition activities to enhance their market presence and product portfolio. Some key players include Microsoft Corporation, SAP SE, Oracle Corporation, and IBM Corporation.
In June 2023, Supply chain-inclined blockchain platform VeChain is taking its relationship with Walmart. The blockchain platform has expanded its partnership with Walmart China to cover more products and categories to revolutionize supply chain management and build customers’ trust in the blockchain. With the VeChain IoT and blockchain solution, the China arm of Walmart can monitor temperature-controlled products while still in transit. This capability helps to reduce the risk of spoilage and contamination and promotes food safety.
Blockchain in Retail Market Leaders
SAP SE
IBM Corporation
Oracle Corporation
Microsoft Corp.
Amazon Web Services, Inc.
*Disclaimer: Major Players sorted in no particular order
Blockchain in Retail Market News
- In Feb 2023, E-commerce giant Flipkart and blockchain platform Polygon entered a strategic partnership to set up a Blockchain-eCommerce Centre of Excellence (CoE). The CoE will work on research and development of Web3 and metaverse commerce use cases in India to accelerate the adoption of Web3.
- January 2023 - Lowe's announced a new solution, developed in its Innovation Labs division, designed to combat retail theft invisibly to consumers through the use of the blockchain and RFID chips. The new Project Unlock technology combines IoT sensors and low-cost RFID chips to activate power tools at the point of purchase while creating a publicly accessible, secure, and anonymized record of legitimate purchases on the blockchain.
Blockchain in Retail Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Force Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Need for Retail Frauds Prevention and Detection is Driving the Market Growth
5.1.2 Improved Transactions Transparency is Expected to Drive the Market
5.2 Market Restraints
5.2.1 Lack of Industry Standardisation for Blockchain is Discouraging the Market Growth
6. MARKET SEGMENTATION
6.1 By Application
6.1.1 Compliance Management
6.1.2 Smart Contract
6.1.3 Supply Chain and Inventory Management
6.1.4 Transaction Management
6.1.5 Automated Customer Service
6.1.6 Identity Management
6.2 Geography
6.2.1 North America
6.2.2 Europe
6.2.3 Asia-Pacific
6.2.4 Rest of the World
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 SAP SE
7.1.2 IBM Corporation
7.1.3 Oracle Corporation
7.1.4 Microsoft Corp.
7.1.5 Amazon Web Services, Inc.
7.1.6 Capgemini SE
7.1.7 Accenture PLC
7.1.8 Provenance Ltd
7.1.9 Cognizant Technology Solutions Corp.
7.1.10 BlockVerify
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Blockchain in Retail Industry Segmentation
Originally used only for financial transactions, blockchain has expanded its roots to other industries, including retail, which is changing the way retailers and suppliers are earning consumer loyalty. It makes the retailers equipped to deal with challenges in transaction management, customer service or inventory management.
The Blockchain in Retail Market is segmented by Application (Compliance Management, Smart Contract, Supply Chain and Inventory Management, Transaction Management, Automated Customer Service, Identity Management), and Geography (North America, Europe, Asia Pacific, Rest of the World).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Application | |
| Compliance Management | |
| Smart Contract | |
| Supply Chain and Inventory Management | |
| Transaction Management | |
| Automated Customer Service | |
| Identity Management |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Rest of the World |
Blockchain in Retail Market Research FAQs
How big is the Blockchain in Retail Market?
The Blockchain in Retail Market size is expected to reach USD 0.47 billion in 2024 and grow at a CAGR of 52.92% to reach USD 4.01 billion by 2029.
What is the current Blockchain in Retail Market size?
In 2024, the Blockchain in Retail Market size is expected to reach USD 0.47 billion.
Who are the key players in Blockchain in Retail Market?
SAP SE, IBM Corporation, Oracle Corporation, Microsoft Corp. and Amazon Web Services, Inc. are the major companies operating in the Blockchain in Retail Market.
Which is the fastest growing region in Blockchain in Retail Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Blockchain in Retail Market?
In 2024, the North America accounts for the largest market share in Blockchain in Retail Market.
What years does this Blockchain in Retail Market cover, and what was the market size in 2023?
In 2023, the Blockchain in Retail Market size was estimated at USD 0.31 billion. The report covers the Blockchain in Retail Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Blockchain in Retail Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Blockchain in Retail Industry Report
Statistics for the 2024 Blockchain in Retail market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Blockchain in Retail analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
