Blockchain Supply Chain Finance Market Size, Share, Growth, and Industry Analysis By Type (IT Solutions, FinTech, Bank, Consulting, Exchange, and Others) By Application (Cross-border Payment, Trade Finance, Digital Currency, Identity Management, and Others), Regional Forecast To 2031

Blockchain Supply Chain Finance Market REPORT OVERVIEW

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The global blockchain supply chain finance market size was USD 16730 million in 2021 and is projected to touch USD 272146.52 million by 2031, CAGR of 32.2% during the forecast period.

Supply Chain Finance (SCF) is becoming more widely recognized as a competitive advantage for business processes. Supply chain financing is a financial management strategy that increases working capital for both suppliers and purchasers. To maintain corporate financial liquidity, buyers employ trade credit as a cash flow management tool. Suppliers benefit from trade credit because it allows them to create favorable payment dates without interrupting their cash flow.

The application of block chain technology in the financial sphere is known as blockchain supply chain finance. The financial services business is one of the most centralized industries in the world, and it is also the driving force behind global economic progress. The failure to build an effective credit mechanism is due to unequal knowledge between the two parties in the financial market. The industrial chain has a significant number of central credit intermediates and information intermediaries, which reduces the system's efficiency and raises the cost of financing. Block chain technology's open and non-tampering qualities allow for the centralization of the trust mechanism and have the ability to revolutionize the financial infrastructure.

COVID-19 Impact: Halt on Manufacturing Operations to Slower Market Growth

According to the International Chamber of Commerce's 2020 Global Trade Survey, trade and trade financing are in a condition of global uncertainty, owing in part to COVID-19. While several banks voiced concern about trade flow and revenue declines as a result of the pandemic, the survey also discovered that lockdowns and working from home are hastening the migration to digital trade solutions, such as blockchain.

LATEST TRENDS

"Robust Demand for Business Process to Boost Market Growth"

The fundamental purpose of SCF is to improve financial flows between different levels of business processes by utilizing solutions provided by financial institutions, technology providers, and other connected parties. Therefore, SCF has the property that the relationship between supply chain participants and financial institutions has a significant impact on the effectiveness of cash flow management efficiency solutions implementation. SCF, for example, is a factoring reversal instance in which the buying business helps the supplier settle their trade credit obligations early. This is based on a review of the buyer–supplier relationship with financial institutions acting as risk bearers and creditworthiness assessors.

Blockchain Supply Chain Finance Market Segmentation

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• By Type Analysis

By type, the market is segmented into IT Solutions, FinTech, Bank, Consulting, Exchange, and Others

AM is the leading segment in the market share. Manufacturers are focusing increasingly on automation in their production processes due to a scarcity of competent personnel. These factors are likely to foster market growth during the upcoming years. 

• By Application Analysis

Based on application, the market is divided into Cross-border Payment, Trade Finance, Digital Currency, Identity Management, and Others 

The commercial vehicles segment is expected to lead the market share. In the automotive and transportation industries, there is a growing demand for high-quality industrial valves. Vehicle multi-angle vision application valves are an essential part of today's technology world. Therefore, these factors can propel market growth.

DRIVING FACTORS

"Incorporation of Decentralization to Boost Industry Progress"

Blockchain's primary feature is decentralization, which is impossible to achieve with conventional technologies. The blockchain eliminates the need for a central server to perform information transmission, distributed storage, maintenance, and other functions, instead relying on the common upkeep of each node in the network. Because of the blockchain's decentralization, each node uses distributed accounting storage, which means that each node has its own general ledger. A fresh block is formed by encryption after each node uploads and downloads the data. The creation of each block will be broadcast to all nodes on the chain, and the genesis of each block will be logged together. To preserve consistency, all node ledgers are updated at the same time.

"Technological Advancements to Foster Progress of the Market"

Rather than relying primarily on traditional financial institutions, technology-enabled supply chains have increased access to a wider range of finance sources. Outside of traditional financial institutions, modern technology has broadened the scope of financial services. The Traceable Account Payable ("TAP") technology, for example, allows debt to be separated and distributed among many stakeholders within an ecosystem. This allows anchor firms to issue account receivables as "digital payment certificates," which can then be split, transferred, or funded in the context of supply chain financing. As a result, traditional financiers' roles in supply chains have fundamentally transformed, with various ecosystem stakeholders, professional investors, financial institutions, and even corporate foundations being capable of filling the function of financiers.

RESTRAINING FACTORS

"High Pricing and Environmental Concerns to Impede Market Growth"

The development of blockchain-based supply chain finance solutions would also necessitate extensive collaboration among parties, including an agreement to create and share a shared system. Implementation benefits would most likely only be realized with a critical mass of participants, implying that a community of parties would need to be dedicated to adoption despite the lack of any tangible cash gains. Other potential roadblocks include the competing needs for transparency and security when it comes to information sharing. Of course, if a given solution is to gain traction across supplier communities, established standards are required.

Blockchain Supply Chain Finance Market REGIONAL INSIGHTS

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"Adoption of New Technologies to Facilitate Market Growth in the Asia Pacific"

North America is expected to dominate the blockchain supply chain finance market share due to the customers in the U.S. benefit from the variety of transportation modes available in their increasingly linked world. Supply chain management software, packaging, material handling, warehousing, forwarding, returned products management, and brokerage are all services provided by logistics companies. The selection of GS1 standards meant to increase the safety, efficiency, and visibility of supply chains across physical and digital channels in 25 sectors in the U.S. may result in significant market growth in North America.

Asia Pacific is expected to hold the second-largest market share due to its promise in sectors such as customer loyalty, retail, and supply chain management, the consumer goods industry is expected to adopt blockchain. In the event of a fraud, businesses would be able to react more quickly and take proactive steps to detect and remove counterfeit products from their supply chain. There is a tendency toward cloud to maintain the data authenticity generated by the retail industry (for example, consumers' shopping data for personalization), and so its security is of highest importance.

KEY INDUSTRY PLAYERS

"Companies Invest Heavily in Research and Development Activities to Improve Brand Position"

With a significant market share, these major firms are focusing on growing their consumer bases in other nations. These companies are taking use of strategic collaboration initiatives to grow their market share and profits. Midsize and smaller businesses, on the other hand, are expanding their market presence by gaining new contracts and tapping new markets thanks to product developments and technology advancements.

INDUSTRY DEVELOPMENT

Hejia has built a blockchain-based business network among various supply chain participants in collaboration with IBM. The blockchain's openness can help confirm the transaction's authenticity by monitoring pharmaceuticals along the supply chain and encrypting trading records.

LIST OF TOP Blockchain Supply Chain Finance COMPANIES

• IBM
• Ripple
• Rubix by Deloitte
• Accenture
• Distributed Ledger Technologies
• Oklink
• Nasdaq Linq
• Oracle
• AWS
• Citi Bank
• ELayaway
• HSBC
• Ant Financial
• JD Financial
• Qihoo 360
• Tecent
• Baidu
• Huawei
• Bitspark
• SAP

REPORT COVERAGE

The research report has included the analysis of several aspects that contribute to the blockchain supply chain finance market growth. It consists of market trends, restraints, and drivers that positively or negatively impact the market. This section also discusses the many sectors and applications that may impact the market in the future. The data is based on current trends and historical milestones. This section also includes an analysis of the global market's production volume.