Blockchain for Supply Chain Traceability Market Size - By Component (Platform, Services), By Deployment Model (Cloud-based, On-premises), By Organization Size, By Technology, By Application, By End User & Forecast, 2024 - 2032

Blockchain for Supply Chain Traceability Market Size

Blockchain for Supply Chain Traceability Market size was valued at USD 2.1 billion in 2023 and is estimated to register a CAGR of over 31.9% between 2024 and 2032. The increasing demand for transparency and accountability in supply chains is driving the market. Businesses and consumers seek assurance of product authenticity, ethical sourcing, and regulatory compliance. Blockchain technology provides a decentralized and immutable ledger that records every transaction within the supply chain, offering a transparent audit trail. This transparency verifies the origin of goods, monitors compliance with standards, and ensures adherence to ethical practices.  
 

In November 2022, TE Food signed an agreement with Baur, an Austrian waste management technology provider to combine waste management solutions with blockchain-based traceability. The parties partnered to deliver consultancy services and solutions for waste treatment and management in livestock farms. The partnership demonstrates blockchain's potential to address complex waste management challenges, enhancing responsible and transparent supply chain practices beyond traditional traceability applications.
 

Moreover, the surge in fraud and counterfeiting incidents is driving the blockchain market for supply chain traceability. As global trade expands, supply chains become more complex, increasing their susceptibility to fraudulent activities and counterfeit goods. Blockchain technology mitigates these risks by offering a secure, immutable ledger for all transactions and movements within the supply chain. This ensures unique identification and tracking of each product, maintaining its authenticity and preventing tampering or counterfeiting.
 

Scalability is a significant challenge in the blockchain segment of the supply chain traceability market. In addition, most of the blockchain networks struggle to process a high volume of transactions quickly. This issue is particularly challenging in supply chains, where numerous transactions occur daily. The limited transaction throughput and latency of several blockchain platforms pose substantial obstacles.
 

For instance, according to the Blockchain Council, high network congestion slows down transaction processing speeds by approximately 14% during peak traffic periods. Consequently, as supply chains become more complex and voluminous, the need for a scalable blockchain solution becomes increasingly critical. This challenge necessitates ongoing innovation in blockchain technology to enhance transaction speeds and capacity without compromising security.
 

Blockchain for Supply Chain Traceability Market Trends

The supply chain traceability industry is undergoing a paradigm shift towards collaboration and partnership. Companies recognize that to fully harness blockchain's benefits, they must work with all supply chain stakeholders, including suppliers, manufacturers, distributors, and retailers. Industry consortia allow these parties to develop and implement blockchain solutions that address common challenges and create shared value. These collaborative efforts standardize blockchain protocols, enhance interoperability, and accelerate the adoption of blockchain technology.
 

In November 2021, NSF partnered with industry experts to introduce NSF Verify, an innovative agri-food supply chain system. This platform provides advanced animal identification and traceability, digitally tracking each animal's journey from birth to market. It secures real-time data using a blockchain-enabled database. This development underscores the growing adoption of blockchain solutions to meet the increasing demands for trust and accountability in global supply chains.
 

Blockchain for Supply Chain Traceability Market Analysis

Based on components, the market is divided into platforms and services. In 2023, the platform segment accounted for a market share of over 63%. The increasing focus on regulatory compliance drives the adoption of blockchain platforms for supply chain traceability. Governments and regulatory bodies, especially in sectors such as pharmaceuticals, food and beverage, and luxury goods, are enforcing stricter regulations on product safety and ethical sourcing.
 

Blockchain technology provides an immutable and transparent ledger, ensuring compliance with these regulations. This transparency is essential for meeting legal standards, avoiding penalties, and protecting reputations. For instance, the Food Safety Modernization Act (FSMA) in the United States and the European Union’s General Food Law require detailed tracking of food products from farm to table. By implementing blockchain platforms, companies can ensure strict adherence to regulations, providing an immutable and transparent record of the product lifecycle.
 

Based on the deployment model, the blockchain in supply chain traceability market is categorized into cloud-based, and on-premises. The cloud-based segment is expected to register USD 19.2 billion by 2032. Cost-effectiveness significantly drives the adoption of cloud-based deployment models in the market. Cloud solutions eliminate the need for substantial capital investments in hardware, software, and maintenance.
 

Instead, businesses can utilize a pay-as-you-go model, paying only for the resources they consume. This operational expenditure model enables companies to manage budgets more effectively and allocate funds to other strategic areas. Additionally, cloud providers handle maintenance, updates, and security, reducing the burden on internal IT teams and ensuring the blockchain solution remains up-to-date and secure. This cost-effective approach is particularly advantageous for small and medium-sized enterprises (SME) that may lack the financial resources for on-premises infrastructure but still require robust supply chain traceability solutions.
 

North America had a significant share of the blockchain in supply chain traceability market with around 43% in 2023. As regulatory requirements intensify, particularly in the pharmaceuticals and food sectors, companies are increasingly adopting blockchain solutions to ensure product safety and authenticity. Blockchain's immutable ledger provides the necessary transparency and traceability to comply with regulations such as the Drug Supply Chain Security Act (DSCSA) in the United States.
 

In Europe, the market for blockchain in supply chain traceability is driven by sustainability initiatives and anti-counterfeiting measures. Consumers and governments in the region emphasize sustainability and ethical sourcing, leading companies to use blockchain technology to maintain transparent and verifiable supply chain records. This approach aligns with Europe's stringent environmental regulations and the growing consumer demand for sustainable products.
 

In the Asia Pacific region, companies are investing in digital transformation initiatives to enhance supply chain efficiency and resilience. Blockchain technology plays a pivotal role in these efforts by offering real-time visibility and traceability of goods, reducing fraud, and improving operational efficiency. The integration of blockchain with other emerging technologies, such as IoT and AI, further strengthens its capabilities in supply chain management.
 

Blockchain for Supply Chain Traceability Market Share

IBM Corporation and Microsoft Corporation dominate the market with around 16% market share. IBM's Blockchain Platform is an enterprise-grade solution that simplifies the development, governance, and operation of multi-institution business networks. Designed for complex supply chains, it offers scalability, security, and flexibility. A key offering, IBM Food Trust, enhances transparency and efficiency in the food supply chain. By creating a secure, shared record of food provenance, it reduces food fraud, improves safety, and minimizes waste.
 

Microsoft's Azure Blockchain Services is a managed platform that streamlines the development, deployment, and operation of blockchain networks. Supporting multiple blockchain protocols, it includes built-in governance and management tools. Microsoft focuses on integrating blockchain with IoT to enhance supply chain visibility and traceability. This integration enables real-time tracking of goods, condition monitoring, and automated compliance checks.
 

Blockchain for Supply Chain Traceability Market Companies

Major players operating in the blockchain for supply chain traceability industry are:

• IBM Corporation
• Microsoft Corporation
• SAP
• Oracle Corporation
• Accenture PLC
• VeChain
• Amazon Web Services (AWS)
• Infosys Ltd.
   

Blockchain for Supply Chain Traceability Industry News

• In September 2023, IBM announced a strategic partnership with iFoodDS to ensure compliance with FSMA deadlines for food preservation. IBM contributes by providing robust backend data processing and storage through its Food Trust network. Concurrently, iFoodDS offers a comprehensive suite of applications and extensive industry expertise to facilitate company onboarding and organizational changes. This collaboration enables companies to efficiently collect the required Key Data Elements (KDEs) and monitor Critical Tracking Events (CTEs).  
   
• In March 2022, SAP partnered with Unilever to pilot GreenToken by SAP, a solution designed to enhance transparency in Unilever's global palm oil supply chain. This solution allowed Golden Agri-Resources and other suppliers to create tokens that accurately represent the material flow of palm oil throughout the supply chain, capturing the unique attributes associated with the oil's origin.
   

The blockchain for supply chain traceability market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

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Market, By Component

• Platform
• Services
  •   Maintenance services
  •   Consulting services
  •   Integration services

Market, By Deployment Model

• Cloud-based
• On-premises

Market, By Organization Size

• SME
• Large enterprises

Market, By Technology

• Public blockchain
• Private blockchain
• Hybrid blockchain

Market, By Application

• Inventory management
• Compliance management
• Contract management
• Provenance tracking
• Others

Market, By End User

• Healthcare & pharmaceuticals
• Food & beverage
• Logistics & transportation
• Retail
• Manufacturing
• Automotive
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia
  • Rest of MEA