Blockchain for Supply Chain Traceability Market Size

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.

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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.