The use of blockchain in the supply chain holds a key potential for improving the transparency of the supply chain and reducing administrative expenditure. Moreover, the massive demand for blockchain in the supply chain can be attributed to its ability in increasing traceability of material supply chain, authentication, and reduce losses incurred due to counterfeit items. Furthermore, blockchain enhances visibility and compliance of supply chain activities and improves the firm’s position as a leader in manufacturing activities. Earlier, blockchain technology was used for carrying out bitcoin transactions as it improved security and facilitated instant transmissions through the internet. In recent times, blockchain has played a major role in the supply chain industry with many players in the industry using the new technology to expand the reach of their supply chain activities across the globe. Integrating blockchain with IoT is projected to reduce supply chain costs, thereby increasing the penetration of blockchain technology in supply chain activities. According to the Allied Market Research report, the global blockchain supply chain market is anticipated to accrue earnings worth $9,852.91 million by 2025.
Moreover, blockchain has added value to the supply chain space by replacing slow and time-consuming manual processes with automated ones. It has facilitated transparent and end-to-end tracking in the supply chain, thereby reducing frauds for highly valued products such as pharmaceutical medicines and diamonds. Blockchain technology has aided firms in digitizing physical goods and creating decentralized records of all business transactions related to the sale of goods. This has enabled firms in tracking supply chain activities, ranging from production to delivery of goods to end-user. Additionally, the immense use of blockchain technology in the transportation and logistics industry has brought transparency into business dealings, thereby encouraging industry players in expanding their business. Let us discuss some of the key ongoing trends observed across the global blockchain supply chain market.
Industry players are entering strategic partnerships for launching new technologies to enhance process efficiency. On August 9, 2018, Maersk and IBM Corporation declared the creation of TradeLens. It has been jointly created by Maersk and IBM Corporation for applying blockchain to the global supply chain. Reportedly, TradeLens, a result of the partnership between Maersk and IBM, is a blockchain-based shipping solution launched for promoting secured global trading activities. The strategic move is aimed at bringing together various vendors, increasing information sharing and transparency, and promoting innovation in business.
Market players are signing contracts with a view of promoting blockchain applications in the supply chain, thereby improving the supply chain and increasing customer satisfaction through timely delivery of goods or services to customers. On June 16, 2022, SIMBA Chain, a blockchain startup firm offering cloud-based blockchain-as-a-service tools for end-users to implement decentralized apps for blockchain, announced that it signed a Small Business Innovation Research contract with the United States Air Force. The move is aimed at tokenizing the United States Air Force (USAF) supply chain budget so that it can keep track of the mobility of funds between suppliers and departments along with monitoring potential supply risks.
Securing funding is one of the key trends witnessed in the global blockchain supply chain market as market players are seeking novel ways for expanding their business. On May 31, 2022, Vendia, a blockchain-based tool enabling businesses to share data across clouds, apps, and platforms, declared that it raised nearly $30 million through a Series B funding round led by Sorenson Capital, NewView Capital, Aspenwood Ventures, BMW Ventures, Neotribe Ventures, and Canvas Ventures. The strategic move of the firm is aimed at entering new business verticals and exploring new frontiers for business expansion. Furthermore, the funding will support new product launches of the company.
The acquisition strategy adopted by market players has played a pivotal role in influencing the growth of their business and increasing their consumer base. The strategy is also executed by market players to reinforce and improve the product or service offerings of the firm. In February 2022, Vista Equity Partners, a global investment firm focusing on enterprise software and technology-enabled business, and Evergreen Coast Capital, an affiliate of Elliot Investment Management L.P., acquired Citrix, a U.S. cloud services provider, for $16.5 billion. Reportedly, Vista and Evergreen will merge Citrix and TIBCO Software, a firm owned by Vista Equity Partners. The strategic move is aimed at expanding the customer base through a broad range of service offerings. Moreover, the acquisition will help Vista Equity Partners and Evergreen Coast Capital improve their online services, which are driven by accelerated digital transformation.
Industry players are deploying new tools for expanding their business reach and spurring their earnings. In May 2022, De Beers Group, a U.K.-based firm specializing in diamond mining, diamond manufacturing, and diamond trading, installed TracrTM, a distributed diamond blockchain platform, for end-to-end diamond tracing from diamond mining field to point of sale. The initiative is predicted to help De Beers Group reinforce its market position, improve customer engagement, and attract new customers while retaining existing customers. Such strategic initiatives will help increase the application of blockchain not only in supply chain activities but across diverse industries. The key business strategies adopted by market players will enhance the growth prospects of the blockchain supply chain market and contribute significantly toward market profitability within the next few years.
