Study Forecasts $2.9 Billion Blockchain Expenditure for 2019
In a press release published March 4, 2019, the International Data Corporation (IDC) forecast worldwide spending on blockchain solutions to be roughly around $2.9 billion in 2019, an impressive surge of 88.7 percent from the 2018 figure of $1.5 billion.
From Pilots and Proof of Concept to Actual Implementation
2019 could very well be the catalyzing year for blockchain technology that sees it transform from a buzz word into one of the most sought after emerging techs by enterprises the world over.
Per a newly updated Worldwide Semiannual Blockchain Spending Guide from the IDC, a total of $2.9 billion is likely to be spent on blockchain-based solutions in 2019. Furthermore, the market intelligence firm forecasted an impressive five-year compound annual growth rate (CAGR) of 76 percent over the forecast period from 2018 to 2022 and total spending to the tune of $12.4 billion in 2022.
The press release posits that global expenditure on blockchain-ready solutions will be led by agents in the financial sector, where the banking, security and investment service providers, and insurance companies will invest more than $1.1 billion.
The financial sector will be closely followed by the manufacturing and resources sector, as well as the supply chain and services sector which are forecast to spend $653 million and $642 million in blockchain solutions, respectively.
It’s worth highlighting that the manufacturing and resources sector will witness the fastest growth in blockchain expenditure over the 2018-2022 forecast period with a strong five-year CAGR of 77.6 percent, closely followed by five-year CAGR of 77.1 percent of the distribution and services sector.
The report also talks notes that cross border payments & settlements and trade finance & post-trade/transaction settlements are the top two use cases of blockchain that will witness the most inflow of investment ($453 million and $285 million, respectively) in 2019.
United States to Lead
According to the report, the United States will see the highest amount of money being spent on blockchain products in 2019. The report states the US will spend approximately $1.1 billion this year, followed by Western Europe ($674 million), and China ($319 million).
“Blockchain is maturing rapidly, and we have 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.”