Blockchain in Logistics Market Size & Share 2024 – 2032
Market Size by Industry Vertical (Retail & Manufacturing, Healthcare, Food and Beverage, Automotive, Oil and Gas, Others), by Application, by Component, by Deployment, by Organization Size & Forecast.
Report ID: GMI10704
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Published Date: August 2024
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Report Format: PDF
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Authors:
Suraj Gujar, Rutvij Kshirsagar
Blockchain in Logistics Market Size
Blockchain in Logistics Market size was valued at USD 19.5 billion in 2023 and is anticipated to grow at a CAGR of over 45% between 2024 and 2032. The integration of AI with blockchain is driving the adoption of predictive analytics in logistics. Companies are leveraging AI to analyze blockchain data for forecasting demand, optimizing inventory levels, and predicting potential supply chain disruptions.
Blockchain in Logistics Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
The rising implementation of IoT and blockchain is enabling real-time tracking of goods throughout the supply chain. IoT devices collect data on the condition and location of goods, which is then recorded on the blockchain. This integration provides a comprehensive and transparent view of the supply chain, allowing stakeholders to monitor the status of shipments in real time. This trend is gaining traction in industries like healthcare and food and beverage, where monitoring the condition of products during transit is crucial for ensuring quality and safety.
For instance, in May 2023, SAP SE unveiled new artificial intelligence enhancements for its supply chain solutions. The updates allow companies to harness real-time data for AI-driven insights, enabling them to make more informed decisions throughout their supply chains. By leveraging their own data through SAP's AI-powered tools, businesses can now optimize their supply chain operations more effectively.
The increasing complexity and globalization of supply chains across various sectors have necessitated the adoption of advanced technologies to ensure efficiency, transparency, and security. Blockchain technology has emerged as a pivotal tool in transforming supply chain management, offering solutions that address some of the industry's most pressing challenges. Security is a major concern in supply chain management, especially for sectors dealing with sensitive or high-value goods, such as pharmaceuticals or luxury goods. Blockchain's decentralized nature and cryptographic security make it difficult for unauthorized parties to alter data. This ensures the integrity of the supply chain, preventing counterfeiting and theft.
Many logistics companies still rely on traditional IT systems that are not compatible with blockchain technology. Integrating blockchain with these legacy systems can be complex and costly. It requires significant changes to existing infrastructure, which can be a barrier to adoption. Additionally, the lack of standardization in blockchain protocols can complicate integration efforts, as different blockchains may not be compatible with each other.
Blockchain in Logistics Market Trends
The logistics industry is experiencing a significant transformation as businesses increasingly shift towards digital platforms. This trend is driven by the need for greater efficiency, transparency, and resilience in supply chains. Among the digital technologies gaining traction, blockchain stands out for its potential to revolutionize logistics by providing a secure, transparent, and decentralized way to manage data and transactions. Blockchain technology offers an immutable and transparent ledger that records every transaction and movement of goods within the supply chain. This feature is particularly valuable in industries such as pharmaceuticals, food and beverage, and luxury goods, where traceability and authenticity are crucial.
For instance, in February 2024, Oracle introduced new logistics tools as part of its Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) suite. The company unveiled updates to its Oracle Transportation Management and Oracle Global Trade Management solutions. These enhancements are designed to provide customers with improved supply chain visibility, cost reduction opportunities, and automated regulatory compliance processes. By implementing these new features, Oracle aims to help businesses streamline their logistics operations and better navigate the complexities of global trade.
The logistics industry is under increasing pressure to adopt sustainable practices to reduce environmental impact and meet regulatory and consumer demands for greener operations. Blockchain technology is emerging as a vital tool in this transformation, offering innovative solutions that support sustainability in logistics. Sustainability in logistics requires collaboration across multiple stakeholders, including suppliers, manufacturers, logistics providers, and regulators. The adoption of blockchain platforms in supply chain ecosystems promotes sustainable practices among all stakeholders.
By providing a transparent and immutable record of transactions and movements, blockchain encourages accountability and fosters trust between partners. This technology enables more efficient resource allocation, reduces waste, and supports ethical sourcing efforts, ultimately driving sustainability throughout the entire supply chain network.
Blockchain in Logistics Market Analysis
Based on the industry vertical, the market is segmented into retail & manufacturing, healthcare, food and beverage, automotive, oil and gas, and others. The healthcare segment represents the fastest growing segment, with a CAGR of over 55% between 2024 and 2032.
Based on the application, the blockchain in logistics market is segmented into tracking and tracing, smart contracts, payment and settlement, inventory management, fleet management, and freight brokerage. The tracking and tracing segment dominated the market in 2023 and is expected to reach over USD 300 billion by 2032.
The North America blockchain in logistics market is expected to reach USD 350 billion by 2032. In the U.S., the demand for blockchain in logistics is driven by the need for enhanced transparency and efficiency in supply chains. The country's large and complex logistics networks, coupled with stringent regulatory requirements, create a strong demand for blockchain solutions.
Europe is another significant blockchain in logistics market, with countries like the U.K., Germany, and the Netherlands leading the way. The U.K. Department for Business and Trade introduced its new Critical Imports and Supply Chain Strategy, aiming to assist U.K. businesses in better managing supply chain disruptions. Various startups are coming with new platforms to support and help optimize the logistics.
For instance, Blockpharma, a French startup, is combating counterfeit drugs using blockchain in its medical supply chain. Their innovative solution enables consumers to easily scan unique QR codes on drug packages, thereby verifying the authenticity of the products and ensuring they remain untempered
The Asia Pacific blockchain in logistics market is experiencing rapid growth in the adoption of blockchain in logistics, driven by the increasing digitalization of supply chains and the need for improved efficiency and transparency. For instance, in November 2022, Mitsubishi Logistics introduced a blockchain-based system for tracking outsourced pharmaceutical shipments. This new technology allows their clients to monitor the journey of their medical products from start to finish. The main goal is to ensure that these sensitive items are kept under the right conditions throughout the entire transportation process.
In Korea, the demand for blockchain in logistics is driven by the need for secure and transparent supply chain operations. The country's strong focus on technology and innovation supports the adoption of blockchain solutions. The South Korean government has allocated approximately USD 15.4 The South Korean government has allocated approximately 15.4 million USD to develop local blockchain expertise, aiming to strengthen its position in the blockchain industry to develop local blockchain expertise, aiming to strengthen its position in the blockchain industry.
Blockchain in Logistics Market Share
IBM Corporation and Microsoft Corporation collectively held a significant share of the blockchain in logistics industry in 2023. IBM Corporation is a global leader in technology and consulting services, renowned for its innovative solutions in various industries, including logistics. In the realm of blockchain, IBM has been a pioneer, leveraging its blockchain platform to enhance supply chain transparency, efficiency, and security.
Microsoft Corporation, a leading global technology company, has been actively involved in the blockchain space, particularly in the logistics sector. Through its Azure Blockchain Service, Microsoft offers a cloud-based platform that enables businesses to develop, test, and deploy blockchain solutions.
Blockchain in Logistics Market Companies
Major players operating in the blockchain in logistics industry are:
Blockchain in Logistics Industry News
The blockchain in logistics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD billion) from 2021 to 2032, for the following segments:
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Market, By Application
Market, By Industry Vertical
Market, By Component
Market, By Deployment
Market, By Organization Size
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
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Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
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Trust & credibility
Verified data sources
Trade publications
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Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →