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Allied Market Research: Blockchain Integration into the Global Retail Market to Garner $11 Billion by 2026

Allied Market Research, a global market research firm, has reported that the incorporation of blockchain into the global retail market will garner $11.18 billion by 2026 from $83 million recorded in 2018. This will, therefore, represent a Compound Annual Growth Rate (CAGR) of 84.6% from 2019 to 2026.

Blockchain technology is being adopted in the retail sector because it offers real-time information and on-time delivery to various stakeholders. Some of the major market players include Microsoft Corporation, SAP SE, Cognizant, Oracle Corporation, and Amazon Web Services, Inc (AWS), among others.

Blockchain in retail

Blockchain-based solutions are being favored by players in the retail industry as they guarantee authenticity, quality, reliability, and product safety. Additionally, the need for transparent transactions has been on the rise and blockchain is touted based on the distributed ledger technology (DLT) it presents. These aspects will, therefore, fuel blockchain adoption in the worldwide retail market.

Conversely, the research notes that the lack of skilled personnel hinders growth to a certain degree, but this challenge is expected to be tackled by the rapidly changing international trade and retail sector as new opportunities will be created.

Blockchain integration into the retail market based on services and platforms registered considerable growth in 2018. The platform segment made up of two-thirds of blockchain utilization in the global retail market, whereas the services field recorded the quickest CAGR of 89.3%.

On the other hand, blockchain application on the basis of smart contracts and payments generated more than two-fifths of the growth witnessed in 2018, and this dominance is expected to continue till 2026. This trend is propelled by the urge by enterprises to eradicate the analog challenge when dealing with contracts, as well as the need to fight fraud and streamline online payments.

Based on regions, North America represented more than two-fifths of the blockchain’s retail market returns in 2018 and is expected to continue reigning supreme during the forecast period. This is linked to the presence of dominant market players, as well as the urge to counter fraud.

During the forecast period, the region across Asia-Pacific is anticipated to register the fastest CAGR of 92% by the end of 2026. This growth is attributed to customer demands, security concerns, and the urge to tackle counterfeit goods.

Blockchain Usage in the Retail Market Expected to Increase 12-Fold, Hitting $2.08B by 2028

Blockchain technology is expected to continue streamlining the retail market, given that its usage is anticipated to increase 12-times to reach $2.082 billion by 2028 from $172.22 million recorded in 2021.

In a new report entitled “Blockchain in Retail Market, 2021-2028,” research and consulting firm Fortune Business Insights speculates that the market will record a compound annual growth rate (CAGR) of $42.8% during the 2021-2028 forecast period.

The study noted that the post-pandemic era has necessitated integrating blockchain solutions into the retail market based on new measures like the termination of production divisions and global manufacturing units. Therefore, blockchain comes in handy in aiding transparency throughout the supply chain.

Fortune Business Insights also highlighted that digital payments had engulfed the retail market, making it necessary to the rollout of distributed ledger technology.

Per the report:

“Blockchain in retail enables low-cost, safe, and rapid payment operating services with the usage of encoded distributed ledgers technology. This aids in the verification of the transactions in real-time without the requirement for intermediaries such as clearinghouses and banks.”

The research acknowledged that some of the leading players aiding blockchain usage in the retail market included IBM Corporation, Amazon Web Services (AWS), Cisco Systems Inc., and Tata Consultancy Services, among others.

Meanwhile, the global blockchain technology market is speculated to hit $1.43 trillion by 2030, according to Grand View Research.

Despite the adoption of blockchain technology being in the experimental stage in most SMEs, it is expected to surge in the coming years based on transparency and low infrastructure costs.

On the other hand, the blockchain industry is continuously experiencing groundbreaking research, with JP Morgan Chase, Ciena, and Toshiba recently showing a Quantum Key Distribution (QKD) Network’s practicability when averting quantum attacks and eavesdropping.

Global Blockchain in Retail Market to Hit $3.27B by 2028

Heightened demand for the worldwide blockchain in the retail market is expected to drive its value past the $3.27 billion mark by 2028, according to market research organization Facts and Factors.

With a value of $137.17 million recorded in 2021, the market is anticipated to set a compound annual growth rate (CAGR) of approximately 57.32% during the forecast period between 2022 and 2028.

Per the announcement:

“Retailers may provide their customers features like record-breaking customer care, traceability, real-time information, and on-time delivery information thanks to blockchain in retail solutions.”

Moreover, blockchain technology plays an instrumental role in showing the precise location of different products, as well as their safety and reliability.

Therefore, the need for enhanced transaction transparency-based solutions is a factor that is anticipated to spur growth in the global blockchain in the retail market.

The report noted:

“Low-cost, secure, and speedy payment processing services are made possible by the blockchain in retail because of the usage of encrypted distributed ledger technology.”

Companies like Loyalty Inc. have already set the ball rolling in this market. For instance, it launched a supply chain traceability system in December 2020 that enabled retailers and owners to document the custody chain from the point of origin to the record importer.

The report segmented the global blockchain in the retail market based on region, end-user, application, and product type.

Facts and Factors pointed out:

“On the basis of application, the market has been segmented into supply chain management, food safety management, customer data management identity management, compliance management, billing transaction processing, and others.”

Meanwhile, some of the primary competitors dominating the global blockchain in retail market include IBM, Oracle, Microsoft, Bitfury, Abra, Bitpay, and Blockchain Foundry.

On the other hand, the digital asset management (DAM) market is expected to generate revenue worth $9.32 billion by 2028 based on soaring demand, according to a recent report by SkyQuest Technology Consulting.