A new report seems to suggest that blockchain solutions would amount to $16 billion in 2023.
International Data Corporation (IDC) ‘s — the United States-based market research firm — a report which was published on Aug. 8, after looking at 2018-2023 five-year compound annual growth rate (CAGR) of 60.2%, has forecasted that overall spending technology will reach around $15.9 billion.
Rise in Blockchain spending in 2019
Information about the blockchain sector’s spending data analysis from a use case, technology, buyer, vertical industry, and regional perspective is contained in the IDC’s Worldwide Semiannual Blockchain Spending Guide.
The reports anticipate that the blockchain spending to be seen in 2019 might be 80% more than what was in 2018. Throughout the forecast period, the banking industry is expected to take the lion’s share of investment — approximately 30%.
Process manufacturing and discrete manufacturing is expected to account for about 20% of the spending. Since a 69.8% CAGR is expected from the former, it is predicted to possess the fastest spending growth.
70% of global spending on blockchain technology development is expected to emanate from both business and IT services. Close to that but outside of the services industry, blockchain platform software is expected to form the largest investment area.
In terms of the 2019 geographical spending, the U.S. is expected to be the largest spender on blockchain at nearly almost $1.1 billion, followed by Western Europe with $661 million and later China at $304 million.
Although the highest CAGR is expected to come from Canada (at about 73.3%), IDC has a feeling that all nine regions will register phenomenal Blockchain spending growth.
Analyzing the blockchain data
James Wester, Global Blockchain Strategies Research Director at IDC, has alluded that across a range of applications, enterprise adoption has attained a tipping-point amid uncertainty that blockchain systems regulation and governance have caused:
“The adoption of blockchain for financial services, identity, trade, and other markets is encouraging. Companies are recognizing value from initial pilot programs and moving those projects into production.”
Stacey Soohoo — his colleague from IDC’s Customer Insights & Analysis unit— has urged analysts not to look at the technology landscape but instead the scope of blockchain.
Come this spring, U.S. federal government is anticipated to increase blockchain spending to $123.5 million and overall, have a 1,000%+ increase for the next five-year period up to 2022 according to the IDC’s report.