Blockchain in Supply Chain Finance Statistics 2024: How Blockchain is Redefining Supply Chain Finance
Barry Elad
Updated · Dec 11, 2024
Imagine a world where every product journey – across oceans, continents, and currencies – could be traced with unmatched transparency and precision. That’s the promise blockchain brings to supply chain finance. In 2024, businesses are increasingly recognizing blockchain’s potential to reduce fraud, increase efficiency, and drive down costs in global supply chains. With complex networks spanning multiple stakeholders, blockchain’s impact is proving transformative, not just in theory but in practice. This article explores the essential statistics and insights that highlight blockchain’s expanding role in supply chain finance and its future trajectory.
Editor’s Choice: Key Blockchain Statistics in Supply Chain Finance
- Global blockchain spending in supply chain management is set to reach $9.85 billion by 2025, highlighting an annual growth rate exceeding 50%.
- 75% of executives report that blockchain can significantly reduce fraud in the supply chain by ensuring transparency across all transactions.
- 20% of large global corporations are expected to implement blockchain in supply chain finance by the end of 2024.
- The supply chain finance market size, supported by blockchain technologies, is projected to achieve a valuation of $18.7 billion by 2027, reflecting the sector’s fast-paced adoption.
- The adoption of blockchain-based digital invoices has increased by 40% from the previous year, reducing processing times by up to 75%.
- Blockchain-enabled smart contracts could lead to savings of over $31 billion annually by automating payments, approvals, and other transactional functions.
- 40% of supply chain leaders state that blockchain is crucial for achieving end-to-end visibility across their logistics networks.
Global Blockchain in Supply Chain Finance Market Dynamics
- Increased blockchain adoption in supply chain finance is being driven by demands for transparency, traceability, and security, with 60% of companies seeking improved verification systems.
- Blockchain adoption in finance and logistics has shown a compound annual growth rate (CAGR) of 57% from 2018 to 2023.
- As of 2024, 41% of North American supply chain companies have integrated or plan to integrate blockchain solutions, highlighting the region’s proactive stance.
- Blockchain-based supply chain finance is projected to generate $18 billion in transaction volume in 2024 alone, a figure that’s expected to double within three years.
- Supply chain transaction accuracy has improved by over 35% for firms using blockchain, reducing costly errors across global networks.
- Blockchain’s role in risk management: 48% of supply chain companies report better visibility into potential disruptions or vulnerabilities due to blockchain’s transparency.
- The Asia-Pacific blockchain market for supply chain finance is predicted to expand rapidly, with a CAGR of 61% through 2027, reflecting regional investment in technology-driven efficiency.
| Metric | Value |
| Companies seeking improved verification | 60% |
| CAGR in finance and logistics (2018-2023) | 57% |
| North American blockchain integration rate (2024) | 41% |
| Accuracy improvement for firms using blockchain | 35% |
| Companies with better visibility into disruptions | 48% |
| Asia-Pacific blockchain CAGR (through 2027) | 61% |
Market Growth and Adoption Rates
- Global investment in blockchain technology for supply chain applications is expected to exceed $11 billion by 2025, up from $2 billion in 2020.
- 15% of logistics providers are now using blockchain to streamline supply chain finance, marking a 20% increase from 2023.
- 45% of financial institutions involved in supply chain finance believe that blockchain can drastically reduce operational bottlenecks by automating verification processes.
- The North American supply chain finance blockchain market is anticipated to grow from $1.3 billion in 2024 to $3.7 billion by 2028.
- Blockchain-powered logistics platforms have increased in number by 30% year-over-year, reflecting heightened demand for efficient and transparent solutions.
- The number of blockchain-based platforms handling trade finance has grown 50% in the last year alone, supporting faster cross-border payments and trade settlements.
- 82% of surveyed executives expect blockchain adoption in supply chain finance to yield positive ROI within two years, highlighting confidence in the technology’s value.
Financial Impact and Cost Savings
- Blockchain implementation in supply chain finance can reduce operational costs by up to 30%, primarily by eliminating intermediaries and manual verifications.
- Digital ledger technologies are estimated to save businesses $3 billion annually by preventing fraud and double financing in supply chain finance.
- Blockchain’s integration with smart contracts is projected to lower administrative costs by up to 40%, particularly in invoice processing and payment settlements.
- Trade finance processing times have been cut by an average of 80% in blockchain-based systems, resulting in significant time and cost savings.
- By automating dispute resolution through blockchain, companies report a 23% reduction in annual dispute management expenses.
- 40% of banks involved in supply chain finance expect to see cost savings from blockchain as early as 2024, especially in compliance and regulatory reporting.
- Increased transparency from blockchain adoption in supply chains could save the global economy $100 billion per year by reducing fraud, errors, and inefficiencies.
Technological Developments and Innovations
- Decentralized finance (DeFi) is finding applications in supply chain finance, with 25% of pilot programs in 2024 exploring DeFi solutions for real-time payments.
- Blockchain-integrated IoT devices in supply chains are growing, with adoption increasing by 30% annually as companies look to enhance tracking and data collection.
- The development of interoperable blockchain standards for supply chain finance is underway, with 15 major logistics companies involved in joint projects for seamless data exchange.
- Blockchain-as-a-Service (BaaS) platforms for supply chain finance have surged, with 35% of businesses preferring BaaS for easy integration and cost management.
- Smart contract adoption in supply chain finance increased by 50% in 2023, as businesses leverage automated contracts to enforce trade agreements and payment terms.
- AI-enhanced blockchain systems are expected to improve data analytics capabilities, with 22% of blockchain-using companies already incorporating AI for predictive analytics.
- Energy-efficient blockchain protocols have emerged, reducing energy consumption by 40% compared to traditional blockchain systems, and making blockchain adoption more feasible for energy-conscious firms.
Regional Analysis of Blockchain in the Supply Chain Finance Market
- North America leads the adoption of blockchain in supply chain finance, with 47% of the region’s companies already utilizing blockchain solutions.
- Europe’s blockchain supply chain market is projected to grow at a CAGR of 52% from 2024 to 2028, driven by regulatory support and technological innovation.
- In Asia-Pacific, countries like China and India are driving adoption, with China accounting for 60% of the region’s blockchain investment in supply chain applications.
- Latin America has seen a 24% increase in blockchain pilot programs for supply chain finance, as companies aim to enhance export efficiency.
- Middle East and Africa are embracing blockchain for cross-border trade, with the UAE leading in blockchain-based supply chain platforms aimed at enhancing trade transparency.
- Australia is quickly emerging as a blockchain-friendly market for supply chains, seeing a 15% year-on-year growth in blockchain implementations in logistics.
- Europe has seen significant regulatory support, with 12 countries implementing blockchain frameworks to streamline cross-border supply chain finance across the EU.
| Region | Metric/Value |
| North America | 47% of companies using blockchain solutions |
| Europe | 52% CAGR (2024-2028) |
| Asia-Pacific | China holds 60% of regional blockchain investment |
| Latin America | 24% increase in pilot programs |
| Middle East and Africa | UAE leads in cross-border blockchain platforms |
| Australia | 15% YoY growth in logistics implementations |
| European Union | 12 countries with blockchain frameworks |
Industry-Specific Applications
- In the automotive industry, blockchain-enabled supply chains can track over 10,000 components per vehicle, ensuring provenance and quality control.
- Food and beverage companies have increased blockchain adoption by 55% since 2022 to meet transparency demands, reducing food fraud and contamination risks.
- Pharmaceutical firms report a 43% improvement in traceability with blockchain, ensuring compliance with regulatory requirements and reducing counterfeit drugs.
- In retail and consumer goods, 28% of global brands are using blockchain to track goods from production to delivery, enhancing customer trust.
- Energy sector companies are using blockchain to verify the origin of green energy certificates, with adoption rates increasing by 40% year-over-year.
- Agriculture supply chains using blockchain have reduced paperwork by 35%, allowing faster access to financing for farmers and reducing costs.
- Textile and fashion industries are also integrating blockchain, with 30% of major brands adopting it to verify ethical sourcing and sustainability claims.
Driving Factors and Restraining Factors
- Transparency demands are one of the leading drivers, as 78% of consumers now expect brands to disclose supply chain information.
- Rising data privacy concerns are restraining factors, with 45% of executives citing data security issues as a primary barrier to blockchain adoption.
- Government regulations are supporting blockchain growth, with 15 countries implementing policies that promote blockchain in supply chain finance.
- High implementation costs remain a restraint, with 60% of small businesses citing costs as a significant barrier to adoption.
- Blockchain’s potential for fraud prevention is a strong driving factor, as 85% of supply chain finance firms consider it essential for fraud reduction.
- The need for cross-border transaction efficiency is driving adoption, with 50% of trade finance companies pursuing blockchain solutions to reduce delays.
- Interoperability challenges among blockchain networks hinder adoption, with 30% of companies struggling to integrate blockchain with existing systems.
Latest Trends
- Tokenization of assets in supply chain finance is gaining popularity, with 20% of companies exploring token-based assets for more efficient collateral management.
- Real-time transaction tracking is now in demand, with 60% of companies aiming to implement blockchain to enable instant visibility.
- Blockchain-based carbon tracking has seen a 35% increase as companies seek to reduce their carbon footprints through transparent supply chains.
- Blockchain-based invoice financing has grown by 45% as it enables faster liquidity and reduces payment delays for small suppliers.
- Decentralized finance (DeFi) integration is on the rise, with 25% of finance firms piloting DeFi solutions in blockchain-based supply chain finance.
- Blockchain-powered predictive analytics for supply chain disruptions is trending, with 30% of firms using blockchain data to anticipate delays and manage risk.
- Private blockchains for exclusive partnerships in supply chains are growing, with 40% of blockchain-using companies preferring private networks to protect proprietary data.
Recent Developments
- Amazon Web Services (AWS) and IBM are partnering with companies to offer Blockchain-as-a-Service (BaaS) solutions, seeing a 28% increase in BaaS subscriptions in 2024.
- In 2023, China launched its largest blockchain pilot for cross-border supply chain finance, involving 50+ companies and 10 financial institutions.
- European Union’s Digital Markets Act now promotes blockchain technology, aiming to increase transparency and trust in cross-border supply chain finance.
- Walmart reported a 30% reduction in food waste using blockchain for end-to-end supply chain tracking, contributing to its sustainability goals.
- FedEx is expanding blockchain applications in logistics, reporting a 23% decrease in delivery errors for high-value shipments.
- Samsung is leveraging blockchain to manage its supplier network across 80 countries, achieving a 20% efficiency boost in compliance and auditing.
- IBM’s Food Trust blockchain network expanded to 200+ partners in 2024, enhancing traceability and reducing risks in the global food supply chain.
Conclusion
Blockchain technology is redefining the future of supply chain finance with transparency, speed, and accuracy at its core. As more industries embrace blockchain, they’re not only transforming internal processes but also setting new standards for global commerce. In 2024, blockchain is no longer a novel concept; it’s an integral part of a forward-thinking, resilient supply chain strategy. With advancements continuing in technology, legislation, and market adoption, blockchain’s role in supply chain finance is set to expand even further, empowering businesses to meet the challenges of an increasingly interconnected and transparent world.
Sources
Barry Elad
Barry Elad is a dedicated tech and finance enthusiast, passionate about making technology and fintech concepts accessible to everyone. He specializes in collecting key statistics and breaking down complex information, focusing on the benefits that software and financial tools bring to everyday life. Figuring out how software works and sharing its value with users is his favorite pastime. When he's not analyzing apps or programs, Barry enjoys creating healthy recipes, practicing yoga, meditating, and spending time in nature with his child. His mission is to simplify finance and tech insights to help people make informed decisions.
