Market research firm Technavio has published a report on the prospects of the supply chain-related global blockchain market
In its press release for the report, Technavio said the market is expected to grow at a compound annual growth rate (CAGR) of over 78% in 2019, followed by a gradual deceleration each year through to 2023.
It said the primary factor in this growth is the increasing global demand for heightened security across supply chains, particularly regarding the theft and mishandling of cargo.
“For instance, in 2016, about 220 cases of piracy and armed robbery were reported globally,” Technavio said.
“Therefore, the need to resolve the growing security and safety concerns has been increasing the requirement for logistics management systems with improved digital connectivity.”
Blockchain’s ability to empower stakeholders with a singular, trustworthy, distributed source of truth means it is a strong option for mitigating the risk of theft across the supply chain by vastly improving data transparency.
Technavio added that blockchain-as-a-service providers will enable firms that lack technical expertise to leverage a viable in-road to the technology, driving the market’s growth beyond businesses that possess the infrastructure for blockchain adoption.
A senior analyst at Technavio said:
“The demand for black market goods has increased due to the global economic crisis, which is triggering cargo thefts.
“This rising security threat from pirates and mishandling of containers pose challenges to different stakeholders in the supply chain, giving rise to the use of blockchain technology in the supply chain management.”