Global spending on blockchain solutions is forecast at almost $ 2.9 billion in 2019, up 88.7 percent from $ 1.5 billion spent in 2018, according to a new IDC forecast.
The consultancy expects blockchain spending to grow at a robust pace during the 2018-2022 forecast period, with a five-year compound annual expansion rate (CAGR) of 76.0% and total expenditures of $ 12.4 billion in 2022.
"Blockchain is maturing rapidly, and we have reached an inflection point where implementations are moving fast beyond the pilot and proof-of-concept phase. That's why data on actual spending on technology is so vital: it provides the context in which blockchain is involved. Understanding how and where companies are investing their money gives suppliers a better sense of where they need to deliver products and services, and gives technology buyers insight into how their peers are adopting the blockchain. It also provides a framework from where we can expect that this new disruptive corporate software technology is delivered, "said James Wester, director of research at Worldwide Blockchain Strategies.
Financial sector in front
Global block-out spending will be led by the financial sector, where the banking, securities and investment and insurance sectors will invest more than $ 1.1 billion (combined in blockchain solutions this year). The manufacturing and resource sector, driven by discrete manufacturing and processes, and the distribution and service sector, led by the professional and retail services industries, is expected to record $ 653 million and $ 642 million, respectively, in this sector. year.
The manufacturing and resources sector will see the fastest growth in blockchain spending in 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% .
Cross-border payments & settlements and trade finance & post-trade / transaction agreements are the two blockchain use cases that will receive the largest investment ($ 453 million and $ 285 million, respectively) in 2019. The banking sector will be the largest investor in both use cases. Manufacturing will focus much of its blockchain investment on lot-of-use / batch provenance use cases and asset management / good use cases, while identity management use cases will receive significant investments from the banking, government, and provider industries. health care.
Cases in progress
"The use cases that make up the blockchain are developing as fast as the technologies that allow it. While spending on more developed use cases in the financial sector, such as commercial financing and international payments, remains healthy and growing, compared to six months ago, we see an acceleration in spending in a number of other areas, such as power plants and claims warranty. We continue to monitor and measure these developments regularly and are inspired by the various forms of innovation that blockchain offers, "said Jessica Goepfert, vice president of Customer Insights & Analysis.
From a technological point of view, IT services and corporate services (combined) will account for almost 70% of all blockchain spending in 2019, with IT services receiving additional new investments during the forecast period. Blockchain platform software will be the largest expense segment outside the service category and the second fastest growing category, with a five-year CAGR of 81.2%, followed by IT services with a CAGR of 82.8%.
Investment by region
The United States will be the geographical region with the largest blockchain spending in 2019 ($ 1.1 billion), followed by Western Europe ($ 674 million) and China ($ 319 million). All nine regions covered in the spending guide will see phenomenal spending growth during the 2018-2022 forecast period, led by Japan and Canada, with five-year CAGRs of 110% and 90%, respectively.