Blockchain in Retail Market by Applications (Smart Loyalty Programs, Supply Chain Tracking, Fraud and Counterfeit, Identity Management, Compliance Management, Smart Contracts, Payments, and Others), by Providers (Application Providers, Infrastructure Providers, and Middleware Providers), Organization Size (Large Enterprises and SMEs), and Region (Europe, North America, APAC, and RoW): Global Opportunity Analysis and Industry Forecast, 2019-2025

Blockchain in Retail Market Overview

The global blockchain in retail market is projected to grow at a CAGR of 65% during the forecast period. Blockchain applications for the retailers are made on permissioned ledgers which are controlled by some actors or miners, which enhances security and traceability. The market is on verge of growth as several IT players as well as start-ups have initiated the promising pilot projects.

Retail industry is going through a continuous transformation and becoming more personalized by offering product recommendations and frictionless customer shopping experience. Customers look forward to more personalized shopping experience and faster transaction times, which is stimulating the adoption of advanced technology in the retail industry. Blockchain technology is supporting retail and e-commerce sector by offering more security, visibility and enhanced supply chain transparency. For enhancing the business models and store fulfillment, many retailers are adopting blockchain technology. Retailers are also taking initiatives to integrate cryptocurrencies into their operations.

The global blockchain in retail market is segmented on the basis of providers, applications, and organization size. Based on providers, the market is bifurcated into application providers, middleware providers, and infrastructure providers. By application, the market is divided into supply chain tracking, smart loyalty programs, identity management, fraud and counterfeit, smart contracts, compliance management, payments, and others. By organization site, the market has been divided into two main segments- Large enterprises and SME’s.

North America to dominate the market

North America accounted for the largest share of the global blockchain in retail market in 2018. Retailers in North America are leveraging the blockchain technology for optimizing their consumer spending and effectively allocating the inventories. High presence of retailers such as Walmart, The Home Depot, Kroger, Walgreens Boots Alliance, Target Corporation, CVS Health, and Lowe's Companies in this region, which are focusing towards adoption of blockchain is one of the major factor leading to the growth of the market in North America. The Asia Pacific region is expected to witness the fastest growth rate due to increased investments in blockchain-based start-ups.

Competitive Analysis of Blockchain in Retail market

Major vendors across different verticals are planning for intensive investments in this market and as a result, the blockchain in retail market is expected to grow at an impressive rate in the coming years. The key players in this market are adopting various organic as well as inorganic growth strategies such as mergers & acquisitions, collaborations & partnerships, joint ventures, and few other strategies to be in the strong position in the market.

Key Vendors in the Blockchain in Retail Market

The key players of the market include IBM, SAP, AWS, Microsoft, Oracle, Bitfury, Guardtime, Auxesis Group, CoinBase, and Reply. IBM had already identified the potential of blockchain technology in retail and has several projects in development and pilot stages.

There are numerous other vendors that have been studied based on the portfolio, geographical presence, marketing & distribution channels, revenue generation, and significant investments in R&D for analysis of the entire ecosystem.

Benefits of The Industry

The blockchain in retail industry offers many advantages including increased innovation, greater scalability, and enhanced transparency & security. Blockchain technology can close the trust gap by establishing enhanced trust between retailers and consumers as well as within entire retail supply chain. Blockchain is also helping retailers in protecting and managing the consumer data.  

Key Segmentation

By Providers

• Application Providers
• Middleware Providers
• Infrastructure Providers

The application providers segment is estimated to hold the largest market share and is expected to witness significant growth at the highest CAGR as application providers are the entities that are usually specialized in different protocol implementations.

By Applications

• Supply Chain Tracking
• Identity Management
• Fraud and Counterfeit
• Smart Loyalty Programs
• Smart Contracts
• Compliance Management
• Payments
• Others

The supply chain tracking is estimated to hold the largest market share in 2019 and the fraud and counterfeit application is anticipated to grow at the highest rate during the forecast period 2019–2025.

By Organization Size

• SME’s
• Large Enterprises

The large enterprises segment is expected to hold the largest market share and the SME’s segment is predicted to grow at the highest CAGR during the forecast period.