The value of the global blockchain retail market size is forecast to surpass the $2 billion mark by 2028 from the $172.2 million recorded in 2021.

This is according to a study by market research company Fortune Business Insights. The firm also found that the compound annual growth rate (CAGR) over this time is forecast to hit 42.8%, in a report entitled “Blockchain in Retail Market Forecast, 2023-2028.”

In regard to the likely demand drivers for the tech, analysts at Fortune Business Insights said 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.”

The report goes on to focus on blockchain’s intrinsic benefits, including increased transparency and enhanced efficiency.

“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,” the report states.

The forecast digital payments growth within the retail sector is also predicted to fuel demand for the technology. In addition, the rising adoption of smart contracts is also seen as a growth driver in the blockchain retail sector.

Moreover, the findings also show that North America – which maintained the largest share of the blockchain retail market in 2020 – is forecast to retain its position because of the “significant capitalisation” registered. 

Elsewhere, in the European market, growth is set to be fuelled by firms “expansively adopting the notion of blockchain technology,”, whilst in the Asia Pacific region, it will be determined by “dominating nations such as India, China, South Korea, and Japan.”

The report goes on to add that demand will likely be maintained by the support of digital technologies and government programs in Latin America, the Middle East and Africa.