The global blockchain market in the retail sector is expected to post a compound annual growth rate close to 81 percent, according to a recent market research report by Technavio. However, the market’s growth momentum is expected to decelerate because of the decline in year-over-year growth during the forecast period 2019 to 2023.

A key factor driving the growth of the market is the demand for increased online security. Personal identity and data control are the major concerns for online retailers as most of the interactions between customers, and online retailers are controlled via usernames and passwords stored in centralized platforms. Such platforms are vulnerable to hacking, and user data can be accessed and misused by hackers, Technavio said. However, the risk of identity theft and fraud is eliminated with the use of a decentralized identity, such as blockchain. In the retail sector, the application of blockchain for identity management can help in reducing identity and transaction fraud in offline or real-world scenarios where people can easily falsify documentation and identity proofs. Blockchain identity management also enables retailers with more secure and foolproof identity exchanges during the transaction in real-world applications. This will drive the growth of the market during the forecast period.

As per Technavio, the growth of quantum computing will have a positive impact on the market and contribute to its growth significantly over the forecast period. This global blockchain market in retail sector 2019-2023 research report also analyzes other important trends and market drivers that will affect market growth over 2019 to 2023.