Saudi Arabia blockchain supply chain market report size, share, growth drivers, trends, opportunities & forecast 2025–2030

Saudi Arabia Blockchain Supply Chain Market Overview

• The Saudi Arabia Blockchain Supply Chain Market is valued at USD 230 million, based on a five-year historical analysis. This growth is primarily driven by the increasing adoption of blockchain technology across various sectors, enhancing transparency, efficiency, and traceability in supply chains. The market is also supported by government initiatives such as Vision 2030 and large-scale smart city projects like NEOM, which are accelerating digital transformation and innovation in logistics and supply chain management. Financial institutions, logistics, and energy sectors are at the forefront of blockchain implementation, leveraging the technology for secure transactions, real-time tracking, and operational optimization .
• Key cities such as Riyadh, Jeddah, and Dammam dominate the market due to their strategic locations, robust infrastructure, and concentration of major industries. Riyadh, as the capital, is a hub for government initiatives and investments, while Jeddah serves as a vital port city facilitating trade. Dammam's proximity to oil and gas industries further strengthens its position in the blockchain supply chain landscape .
• The National Strategy for Data and Artificial Intelligence, issued by the Saudi Data and Artificial Intelligence Authority (SDAIA) in 2023, mandates the integration of blockchain technology in supply chains. This regulation enhances data security, improves operational efficiency, and fosters innovation, positioning Saudi Arabia as a leader in the digital economy and attracting investments in blockchain solutions. The strategy includes compliance requirements for data management, interoperability standards, and operational thresholds for blockchain deployment in logistics and supply chain sectors .

Saudi Arabia Blockchain Supply Chain Market Segmentation

By Industry Vertical:The industry vertical segmentation includes various sectors that utilize blockchain technology to enhance their supply chain processes. The key segments are Transportation and Logistics, Agriculture and Food, Manufacturing, Energy and Utilities, Healthcare and Life Sciences, Retail and E-commerce, Government, Real Estate and Construction, and Others. Each of these sectors leverages blockchain for improved traceability, efficiency, and security in their operations, with logistics and retail leading adoption due to their need for real-time tracking and fraud prevention. Manufacturing and energy sectors are increasingly integrating blockchain to optimize resource management and ensure compliance with sustainability standards .

By Component:The component segmentation focuses on the different elements that make up blockchain solutions in the supply chain. This includes Platform Providers, Application Providers, and Middleware Providers. Each component plays a crucial role in the development and implementation of blockchain technology, facilitating seamless integration and functionality across various supply chain processes. Platform providers dominate due to their ability to offer scalable, secure, and flexible solutions for large enterprises, while application and middleware providers support customization and interoperability for diverse industry needs .

Saudi Arabia Blockchain Supply Chain Market Competitive Landscape

The Saudi Arabia Blockchain Supply Chain Market is characterized by a dynamic mix of regional and international players. Leading participants such as IBM, SAP, Oracle, VeChain, R3 Corda, Microsoft, ConsenSys, Hyperledger, ChainSafe Systems, Waltonchain, Ambrosus, Modum, OriginTrail, Everledger, Saudi Aramco, Elm Company, STC (Saudi Telecom Company), SABB (Saudi British Bank), Ma’aden (Saudi Arabian Mining Company), Bahri (National Shipping Company of Saudi Arabia) contribute to innovation, geographic expansion, and service delivery in this space .

Saudi Arabia Blockchain Supply Chain Market Industry Analysis

Growth Drivers

• Increasing Demand for Transparency:The Saudi Arabian supply chain sector is witnessing a surge in demand for transparency, driven by consumer preferences for traceable products. In future, the value of the traceability market is projected to reach approximately SAR 1.5 billion, reflecting a 20% increase from the previous year. This demand is fueled by heightened awareness of ethical sourcing and sustainability, compelling companies to adopt blockchain solutions that provide real-time visibility into their supply chains, thereby enhancing consumer trust and brand loyalty.
• Government Initiatives Promoting Digital Transformation:The Saudi government has committed over SAR 10 billion to digital transformation initiatives as part of its Vision 2030 strategy. This investment aims to modernize various sectors, including logistics and supply chain management. By future, the government plans to implement blockchain technology in at least 30% of public sector supply chains, facilitating improved efficiency and accountability. Such initiatives are expected to catalyze private sector adoption, further driving market growth.
• Rising Need for Efficiency and Cost Reduction:Companies in Saudi Arabia are increasingly focused on enhancing operational efficiency and reducing costs. In future, logistics costs are estimated to account for 13% of the country's GDP, prompting businesses to seek innovative solutions. Blockchain technology can streamline processes, reduce fraud, and minimize delays, potentially saving the industry up to SAR 2 billion annually. This financial incentive is a significant driver for the adoption of blockchain in supply chain operations.

Market Challenges

• Lack of Regulatory Clarity:The absence of clear regulations surrounding blockchain technology poses a significant challenge for its adoption in Saudi Arabia. As of future, only 40% of companies report having a comprehensive understanding of the legal implications of blockchain. This uncertainty can deter investment and slow down the implementation of blockchain solutions, as businesses remain cautious about potential compliance issues and liabilities associated with unregulated technologies.
• High Initial Investment Costs:The initial costs associated with implementing blockchain technology can be prohibitive for many companies. In future, the average investment required for a blockchain solution in supply chain management is estimated at SAR 3 million. This high upfront cost can limit access for small and medium-sized enterprises (SMEs), which may lack the financial resources to invest in such transformative technologies, thereby hindering overall market growth.

Saudi Arabia Blockchain Supply Chain Market Future Outlook

The future of the Saudi Arabian blockchain supply chain market appears promising, driven by ongoing technological advancements and increasing government support. As companies continue to recognize the benefits of blockchain for enhancing transparency and efficiency, adoption rates are expected to rise significantly. Furthermore, the integration of artificial intelligence and IoT with blockchain will likely create new opportunities for innovation, enabling businesses to optimize their supply chains and respond more effectively to market demands.

Market Opportunities

• Expansion of E-commerce Platforms:The rapid growth of e-commerce in Saudi Arabia, projected to reach SAR 30 billion in future, presents a significant opportunity for blockchain integration. Enhanced supply chain transparency can improve customer satisfaction and trust, making blockchain a vital tool for e-commerce businesses aiming to streamline operations and ensure product authenticity.
• Collaborations with Tech Startups:The burgeoning tech startup ecosystem in Saudi Arabia offers opportunities for established companies to collaborate on blockchain solutions. With over 500 startups in the region as of future, partnerships can drive innovation and accelerate the development of tailored blockchain applications, enhancing supply chain efficiency and competitiveness in the market.