Global Investment Surge in Blockchain
According to a report from the International Data Corporation (IDC), global expenditure on blockchain solutions is expected to rise significantly. The projection for 2023 stands at nearly $16 billion, with an impressive compound annual growth rate (CAGR) of 60.2% from 2018 to 2023.
The Shift in Blockchain Dynamics
- 2019 Spending Surge: The report anticipates an astonishing 80% increase in blockchain spending in 2019 compared to the previous year.
- Banking Leads The Way: The banking sector is poised to dominate with 30% of total investments during this forecast period.
- Manufacturing on the Rise: Discrete and process manufacturing are set to contribute 20% of spending, with the latter expected to show the fastest growth at 69.8% CAGR.
Regional Insights
Breaking it down by geography, the U.S. is projected to spend nearly $1.1 billion on blockchain by 2019, followed by:
- Western Europe: $661 million
- China: $304 million
Interestingly, Canada is leading in terms of growth rate, expected to achieve a staggering 73.3% CAGR.
The Role of Services and Software
When zooming in on technology development, combined IT and business services are estimated to account for a hefty 70% of global blockchain spending. Notably, blockchain platform software is projected to be the largest investment area outside of direct services.
Industry Professionals Weigh In
James Wester, IDC’s Worldwide Blockchain Strategies Research Director, commented on the evolution of adoption: “The adoption of blockchain for financial services, identity, trade, and other markets is encouraging.” Companies are increasingly transitioning from pilot programs to full-scale deployment, indicating a maturity in the blockchain space.
Moreover, Stacey Soohoo from IDC’s Customer Insights & Analysis adds a thought-provoking observation: “It’s no longer a question of if blockchain will integrate into the technology landscape, but how far it will reach.”
Federal Blockchain Investments
Looking ahead, the IDC forecasts a stunning rise in U.S. federal blockchain spending, anticipating growth to $123.5 million by 2022 — an increase of over 1,000% over five years. The enthusiasm is palpable, and it looks like blockchain is here to stay and thrive!
