Blockchain in Retail Market by Component, Organization Size, Provider, Type, Deployment Mode, Application (Transaction Management, Supply Chain Management, and Other Applications) and Geography - Global Forecast to 2029

The Blockchain in Retail Market is projected to reach $25.8 billion by 2029, at a CAGR of 68.3% from 2022 to 2029. The growth of this market is driven by the growing e-commerce, the adoption of blockchain by online retailers, the rising need to improve food safety with a transparent retail supply chain, growing demand for cost reduction, faster payments, increased transparency, and improved security. However, the lack of technology adoption by the unorganized retail sector and the dynamic regulatory & compliance environment may restrain the market growth. The growing adoption of crypto payment services in the retail sector, the increasing proliferation of blockchain to fight counterfeiting in the retail sector, and blockchain contribution to B2B payments are expected to offer significant growth opportunities for the stakeholders in the blockchain in the retail market. However, the growing number of digital attacks, lack of awareness, and technical understanding of blockchain technology is expected to pose serious challenges to the growth of the blockchain in retail market. Besides, a surge in demand for blockchain-based solutions for faster and contactless payment processing during the COVID-19 pandemic and increasing demand for QR code or near-field communication chip (NFC)-enabled products in retail stores are the latest trends in the global blockchain in retail market.

Impact of COVID-19 on the Blockchain in Retail Market

The outbreak of the COVID-19 pandemic adversely impacted the global economy significantly. Lockdowns and quarantine restrictions were imposed across several countries, negatively affecting multiple industries, including the blockchain in the retail sector. Uncertainty regarding the duration of the lockdowns made it difficult for the key market players to anticipate the recovery of the blockchain in retail market.

The COVID-19 pandemic created several challenges for the blockchain in retail market due to the lockdowns imposed during the second and third quarters of 2020. The pandemic lowered consumers' financial potential, which decreased the sales of retail blockchain services and solutions. However, in 2021, retail industries started recovering from economic setbacks during the pandemic. The COVID-19 pandemic moderately impacted the blockchain in retail market due to delayed and postponed orders for retail blockchain solutions; however, it started recovering rapidly in the last quarter of 2020.

Retail blockchain providers plan to move forward and capitalize on the lucrative market growth opportunities that have resulted from the outbreak of the COVID-19 pandemic. The blockchain in retail market is projected to transform drastically over the coming years. Several leading companies are growing rapidly through product launches, product enhancements, partnerships, and collaborations for leveraging blockchain in retail solutions. Leading blockchain providers prepared to handle an unprecedented pandemic demonstrating a shift in the demand for retail blockchain applications. Companies are developing innovative and customized solutions to meet rapid changes in customer preferences. Thus, the rapid shift toward customized retail blockchain platforms and rising deployments of retail blockchain solutions across the globe are expected to create market growth opportunities for the blockchain in retail market in the coming years.

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Growing E-commerce & Adoption of Blockchain by Online Retailers to Fuel the Market Growth

The E-commerce space is becoming extremely competitive, and modern-day consumers are demanding better and more personalized experiences and easy access to product information and exceptional services. Achieving customer satisfaction is retailers' prime objective for staying ahead of the competition, irrespective of their business size. Online retailers leverage data collection and actively integrate blockchain solutions for applications such as consumer experience management, transaction management, supply chain management, compliance management, identity management, food safety management, fraud detection/management, and other applications. Along with providing unique shopping experiences for the online customer, blockchain solutions are being utilized in online retail for notable applications such as maintaining product quality, tackling fraud, managing consumer data, improving loyalty programs, tracking inventory, automating back-office administration, and more effective, secure, and faster payment systems.

As the COVID-19 pandemic reshapes the world and retail sector, more consumers have started shopping online at a considerable scale and frequency. According to IBM’s U.S. Retail Index data, the pandemic has accelerated the shift from physical stores to digital shopping by roughly five years. Online retailers around the globe are using blockchain solutions to drive profitability and improve customers’ shopping experiences. Following retailers use blockchain technology:

• Carrefour (France): Carrefour used blockchain technology to track its meat, milk, and fruit production from farm to store. It works with a QR code and gives information about where and when the product was harvested, whether it contains any pesticides, etc.
• Amazon Web Services, Inc. (U.S.): The e-commerce giant uses its Amazon Web services platform to provide blockchain solutions for companies.
• Alibaba Group Holding Limited (China): Alibaba has its own “blockchain as a service” infrastructure. This platform is active in four areas, including product traceability, supply chain finance, data asset sharing, and digital content ownership.
• Walmart (U.S.): Walmart has been working with IBM’s Hyperledger Fabric platform for some of its supply chain tracking.
• The Home Depot, Inc. (U.S.): Home Depot has implemented the IBM Blockchain Technology to manage disputes in the supply chain faster and more efficiently.

Collectively, online retailers increasingly adopt blockchain technology to help them take proactive strategies for customer engagement and data management based on real-time customer data. Besides, gradually shifting traditional retail stores toward retail blockchain solutions & services is also expected to propel the growth of e-commerce and, proportionally, the growth of the blockchain in retail market.

Key Findings in the Global Blockchain in Retail Market Study:

Based on component, in 2022, the Solutions Segment is Expected to Dominate the market

Based on component, in 2022, the solutions segment is expected to account for the largest share of the global blockchain in retail market. The large market share of this segment is attributed to the increasing demand for retail blockchain solutions to ensure effective supply chain and fraud management, the growing popularity of cryptocurrency payment solutions, the increasing popularity of blockchain solutions for improving food safety, and the increasing popularity of cloud-based retail blockchain solutions.

Based on Deployment Mode, the Cloud-based Deployment Segment is Expected to Register the Highest CAGR During the Forecast Period

In 2022, the cloud-based deployment segment is expected to register the highest CAGR during the forecast period. The increasing need for cloud-based retail blockchain solutions for processing large amounts of customer data and the increasing need to reduce internal system design, implementation, and ongoing maintenance costs are expected to support the growth of this segment. Several retail organizations are gradually transitioning to cloud infrastructure, a trend expected to grow in the coming years. The benefits of cloud infrastructure, such as ease of adoption, minimal requirement for in-house infrastructure, high scalability, and easy installation of retail blockchain solutions, support the growth of the cloud-based segment.

Based on Application, the Supply Chain Management Segment is Expected to Register the Highest CAGR During the Forecast Period

In 2022, the supply chain management segment is expected to register the highest CAGR during the forecast period. The increasing need to implement a transparent supply chain process for retail industries, the growing need to maintain the authenticity of raw materials, the growing popularity of faster payment systems, and the increasing need to tackle counterfeiting and observe manufacturing practices are expected to support the growth of this segment.

Asia-Pacific: The fastest-growing regional market

Asia-Pacific is projected to register the highest CAGR. The rapid growth of blockchain in retail solutions & services in the urban population is due to growing economies in the region, such as India, China, and Indonesia. The increasing adoption of B2B blockchain-based payment systems, surge in demand for retail blockchain solutions to ensure effective supply chain and fraud management, a surge in demand for retail payment systems, and the growing presence of well-established blockchain companies are supporting the growth of the region.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key strategic developments adopted by the leading market participants over the last three years. The key players operating in the global blockchain in retail market are International Business Machines Corporation (U.S.), SAP SE (Germany), Microsoft Corporation (U.S.), Oracle Corporation (U.S.), Amazon Web Services, Inc. (U.S.), Infosys Limited (India), Cognizant Technology Solutions Corporation (U.S.), Tata Consultancy Services Limited (India), Coinbase, Inc. (U.S.), Bitfury Holding B.V. (Netherlands), Auxesis Services & Technologies (P) Ltd (India), Reply (Italy), Blockchain Foundry inc. (Canada), Cisco Systems, Inc. (U.S.), BitPay Inc. (U.S.), Abra (U.S.), Project Provenance Ltd (U.K.), and BigchainDB GmbH (Germany).

Scope of the Report

Blockchain in Retail Market, by Component                   

• Solutions
• Services

Blockchain in Retail Market, by Application

• Smart Contract
• Consumer Experience Management
• Transaction Management
• Supply Chain Management
• Compliance Management
• Identity Management
• Food Safety Management
• Fraud Detection/Management
• Other Applications

Blockchain in Retail Market, by Organization Size

• Large Enterprises
• Small and Medium-sized Enterprises

Blockchain in Retail Market, by Provider

• Application Provider
• Middleware Provider
• Infrastructure Provider

Blockchain in Retail Market, by Type

• Public Blockchain
• Permissioned or Private Blockchain
• Federated or Consortium Blockchain
• Hybrid Blockchain

Blockchain in Retail Market, by Deployment Mode

• On-premise Deployment
• Cloud-based Deployment

Blockchain in Retail Market, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Netherlands
  • Switzerland
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Singapore
  • Rest of Asia-Pacific
• Latin America
  • Mexico
  • Brazil
  • Rest of Latin America
• Middle East & Africa
  • UAE
  • Israel
  • Rest of Middle East & Africa            

Key questions answered in the report: