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According to the Worldwide Semiannual Blockchain Spending Guide from IDC, global blockchain spending is expected to reach almost $3 billion in 2019. If the forecasts are accurate, this would be an increase of over 88 percent from the $1.5 billion spent in 2018, showing investment into the technology is growing at a fast pace.
Global Blockchain spending has reached its all-time high and is expected to increase as the year progresses.
IDC also expects blockchain spending to grow at a “vigorous pace” over the 2018-2022 forecast period. The report also forecast a five-year compound annual growth rate (CAGR) of 76 percent and total spending of $12.4 billion in 2022.
The majority of worldwide blockchain spending will be led by the finance sector, the updated guide suggested. Banking, securities, investment, and insurance services will be the biggest investors in blockchain solutions this year, cumulatively adding $1.1 billion into the industry.
A close second to the finance sector is the manufacturing and resources sector. According to IDC, the two will record a blockchain spending of $653 million and $642 million respectively. The two industries will also be the ones to see the fastest growth, reaching a five-year CAGR of 77.6 percent. The distribution and services industry will be a close second, with an estimated five-year CAGR of 77.1 percent.
According to Jessica Goepfert, vice president of the Customer Insights and Analysis Program at IDC, the explosive growth of blockchain in these industries is enabled by the technology’s infancy.
“The use cases that comprise the blockchain opportunity are developing as swiftly as the technologies enabling it,” she enlightened. Geopfert also expressed that despite spending for more developed use cases in the fintech sector has been steadily rising, more intensive growth was recorded in areas such as energy settlements and warranty claims.
Worldwide Blockchain Strategies’ director of research, James Webster, alleged that blockchain technology has reached an inflection point where implementations are moving quickly beyond the pilot and proof of concept phase: “That is why data on the actual spend on the technology is so vital, it provides the context in which blockchain is evolving.”
Tags: Blockchain Technology
