According to the October industry analysis, digital solutions may become a regular part of the mainstream transportation industry. The blockchain in the supply chain, however, does face obstacles along the way that need careful consideration.
Based on data from recent research efforts, blockchain in the supply chain can have a regular place in mainstream markets by 2025. A few large-scale implementation cases provide the space for further market penetration. However, the adoption rate is low right now due to the mistrust of the industry towards blockchain solutions.
Recent Blockchain in the Supply Chain Stats
According to the Technavio research, blockchain in the supply chain would achieve Compound Annual Growth Rate (CAGR) of over 78% in the period of 2019-2023. The key factor of growth lies in the escalating cargo theft and mishandling of goods. Through irreversible ledger records and live transaction tracking software, businesses engaged with blockchain would track products more efficiently.
Another analysis by Capgemini Research Institute stated that 2025 is going to be the year when blockchain becomes part of the mainstream supply chain. The survey results state that the top three drivers for blockchain in supply chain adoption are costs, traceability, and transparency. However, the greatest challenge is the ROI. This is especially so for in-house solutions. Also, implementation within the supply chain and security of information are an obstacle due to transparent blockchain ledger records.
Current Supply Chain Adoption
The Technavio report stated that right now, the biggest milestone in blockchain adoption within the supply chain industry is Amazon’s 2018 solution. Companies would use the blockchain-based transportation system without the risk of in-house programs. However, the general adoption rate is quite low. Both analyses, Technavio and Capgemini, state that only 3% of businesses actually use the tech. Additional 10% are in the testing stage and have not implemented blockchain within vendor systems.
A popular example of the active blockchain in supply chain case is a joint venture of IBM and Maersk. However, the program is facing obstacles in terms of clients. The tech giant admitted that it has a tough time attracting customers to the platform. The main reason, as stated by the IBM, is the Maersk collaboration, which is a large rival to many potential clients. Most carriers said that, although the blockchain solution provided by the venture is attractive, centralization is an issue.
How Successful Are Crypto Businesses?
Apart from the old players, new transport companies are entering the market. All of them have been blockchain-based from the start. Still, most of these are platforms rather than carriers. These include the Enterprise Ethereum Alliance (EEA) and Hyperledger, Waltonchain, Ambrosus, and others.
The EY report on blockchain in supply chain prospects states that this part of the market is yet to show real data. The industry is in the stage of early adoption. Most crypto platforms are either raising funds or attracting customers. Thus, it is safe to say that the crypto supply chain adoption, with only 3% of use, still has a long way to go.