According to Fortune Business Insights, the global blockchain retail market size is expected to surge from the $172.2 million recorded in 2021 to over $2 billion by 2028. Both the demand for the product by end-users as well as the growing use of the technology in supply chain management are expected to sustain the market’s projected compound annual growth rate (CAGR) of 42.8%.
Inherent Benefits of Blockchain
The value of the global blockchain retail market size is expected to grow from the $172.2 million recorded in 2021 to over $2 billion by 2028, a study by the market research firm Fortune Business Insights has found. In a report titled “Blockchain in Retail Market Forecast, 2023-2028,” the research firm also revealed that the CAGR during this period is expected to top 42.8%.
According to a part of the research firm’s March 10 press statement highlighting the likely drivers of demand for the technology, Fortune Business Insights analysts argue that the “surging demand for the product from end-users such as retail as well as [the] supply chain is expected to navigate the demand for [a] solution in retail.”
Expanding on why the technology is increasingly favored by businesses in the blockchain retail sector, the report points to the technology’s inherent benefits such as improved efficiency and increased transparency.
“The integration of blockchain technology in the retail sector offers numerous benefits such as secure, cost-effective, and swift payment processing through encoded distributed ledgers. This technology allows for real-time verification of transactions without the need for intermediaries like banks or clearinghouses,” states the report.
Rising Adoption of Smart Contracts
The anticipated growth of digital payments within the retail sector is similarly expected to drive the demand for the technology. In the report, the rising adoption of smart contracts is also identified as a driver of the blockchain retail sector’s growth.
Meanwhile, the report states that North America, which held the largest share of the blockchain retail market in 2020, is likely to hold on to this dominant position due to the “significant capitalization” recorded. While growth in the European market is expected to be driven by companies “expansively adopting the notion of blockchain technology,” in the Asia Pacific region, this will be steered by “dominating nations such as India, China, South Korea, and Japan.”
In Latin America as well as in the Middle East and Africa, the embrace of digital technologies and government programs is expected to sustain demand, the report adds.
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