According to a newly updated Worldwide Semiannual Blockchain Spending Guide from International Data Corporation (IDC) the amount spent on blockchain technology by businesses worldwide to be nearly $2.9 billion in 2019, an increase of 88.7% from the $1.5 billion spent in 2018.
IDC expects blockchain spending to grow at a robust pace over the 2018-2022 forecast period with a five-year compound annual growth rate (CAGR) of 76.0% and total spending of $12.4 billion in 2022.
Global blockchain spending will be led by the financial sector, where the banking, securities and investment services, and insurance industries will invest more than $1.1 billion combined in blockchain solutions this year. The manufacturing and resources sector, driven by the discrete and process manufacturing industries, and the distribution and services sector, led by the retail and professional services industries, are forecast to see blockchain spending of $653 million and $642 million respectively this year. The manufacturing and resources sector will see the fastest growth in blockchain spending over the 2018-2022 forecast with a five-year CAGR of 77.6%, followed closely by the distribution and services sector with a CAGR of 77.1%.
“The use cases that comprise the blockchain opportunity are developing as swiftly as the technologies enabling it. While spending for more developed use cases in the financial sector like trade finance and cross-border payments is still healthy and growing strong. We’ve seen acceleration in spending across a variety of other areas, such as energy settlements and warranty claims. We are continuing to monitor and measure these developments on a regular basis and are inspired by the various forms of innovation blockchain delivers,” said Jessica Goepfert, program vice president, Customer Insights & Analysis.
From a technology perspective, IT services and business services (combined) will account for nearly 70% of all blockchain spending in 2019 with IT services receiving additional new investment over the forecast period. Blockchain platform software will be the largest segment of spending outside of the services category and the second fastest growing category overall with a five-year CAGR of 81.2%, following IT services with a CAGR of 82.8%.
“The blockchain space has seen considerable hype, but blockchain has proven to remove a layer of uncertainty from a multifaceted ecosystem built on trust. In many use cases, incorporating blockchain into the mix has been better than the status quo. With enterprises trying to find a balance between decentralizing their business processes while bringing common standards to the blockchain space, the future state of the blockchain world relies on collaboration and building bridges between organizations and communities. With a number of breakthroughs in 2018, ranging from mainstream acceptance by large enterprises to regulators recognizing their governance role in the blockchain world, blockchain has come a long way since 2017, the year of blockchain experimentation and awareness. 2019 will be a year of mainstream adoption, but will rely heavily on reshaping the ideology of a blockchain revolution,” said Stacey Soohoo, research manager, Customer Insights & Analysis.
The Worldwide Semiannual Blockchain Spending Guide quantifies the emerging blockchain market by providing spending data for ten technologies across 19 industries and 15 use cases in nine geographic regions. IDC defines blockchain as a digital, distributed ledger of transactions or records.
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