According to a recent market research report, the blockchain in the global retail market is projected to reach a market size of $25.8 billion by 2029, at a CAGR of 68.3% from 2022 to 2029.
Meticulous Research released the report for purchase last month titled 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.
Blockchain is the disruptive technology that enables the existence of cryptocurrencies, like Bitcoin and Ethereum.
Retail blockchain records digital transactions cryptographically on a distributed ledger within the retail sector. Blockchain helps retailers to better track the origin of stock, offers better control over what they sell, and provides assurances for different applications.
Notable benefits of using blockchain include improved supply-chain and data management, reduced costs and settlement time, enhanced consumer trust, and brand authenticity.
The report covers Middle East and Africa, with a strong focus on the UAE and Israel.
According to a survey by blockchain analytics platform Chainalysis last month, Mena countries have the fastest-growing cryptocurrency industry in the world, accounting for 9.2% of global digital currency transactions from July 2021 to June 2022. While the region is one of the smallest crypto markets, its growth to $566 billion was received in cryptocurrency between July 2021 and June 2022.
Furthermore, three of the top 30 nations in this year’s Crypto Adoption Index are located in the Mena region: Turkey (ranking 12), Egypt (14), and Morocco (24).
Global findings
The market growth is driven by growing e-commerce, the adoption of blockchain by online retailers, the rising need to improve food safety with a transparency in retail supply chains, growing demand for cost reduction, faster payments, increased transparency, and improved security.
The latest trends in the global blockchain in retail market see 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.
Based on component, in 2022, the solutions segment is expected to dominate the global blockchain in retail market by accounting for its largest share. The large market share of this segment is mainly attributed to the increasing need to implement a transparent supply chain process for retail industries, the growing need to maintain the authenticity of raw materials, including component suppliers, and the growing popularity of faster payment systems.
With regard to deployment mode in 2022, the cloud-based deployment segment is projected to register the highest CAGR during the forecast period due to the high preference amongst large retail enterprises, the increasing need for cloud-based retail blockchain solutions to process large amounts of customer data, and the increasing need to reduce internal system design, implementation, and ongoing maintenance costs.
Based on application, this year, the supply chain management segment is expected to register the highest CAGR during the forecast period.
The COVID-19 pandemic also impacted the financial potential of consumers, resulting in a considerable decline in the sales of retail blockchain solutions and services. The blockchain in retail market was moderately impacted by the COVID-19 pandemic due to delayed and postponed customer orders but has been recovering since the last quarter of 2020.
Founded in 2010, Meticulous Research is a private limited company providing premium market intelligence in North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
