The International Data Corporation (IDC) has released the Worldwide Semiannual Blockchain Spending Guide. It is estimated that total blockchain spending in 2018 will be USD 1.5 billion, double the 2017 total. Further, the IDC calculates the compound annual growth rate of the blockchain industry is 73.2%, with nearly USD 3 billion of blockchain spending in 2019, USD 5 billion in 2020, over USD 8 billion in 2021, and USD 11.7 billion in 2022.
IDC’s research manager of the Customer Insights and Analysis Team, Stacey Soohoo, says, “Enthusiasm for blockchain continues to be universally shared across regions as businesses and organizations alike continue to explore the technology’s potential business application.”
Indeed, a plethora of businesses, organizations, banks, and governments have been embracing blockchain technology. Blockchain technology provides immutable and transparent databases, which builds trust, helps get rid of fraud, and makes it easier to notice inefficiencies and remove them. Blockchain technology is already in widespread use to make supply chains stronger and shorter, in addition to being used by many financial institutions to facilitate cross-border payments.
IDC’s program vice president of the Customer Insights and Analysis Team, Jessica Goepfert, says, “We continue to see the greatest spending and growth for blockchain around lot lineage and asset and goods management. Highly visible scandals combined with complex supply chains and incomplete information set the stage for investments and projects in these areas. End to end, the stakeholders have a vested interest in solving these issues. Manufacturers want to ensure products arrive where they are supposed to arrive. Retailers and wholesalers seek assurance around the validity and quality of the products they are selling. And consumers are demanding greater transparency from providers.”
The United States is projected to lead the world with 36% of total blockchain spending through 2022, followed by Western Europe and China. Throughout the entire world, the growth of the blockchain industry is expected to be phenomenal.
Driven by rapid adoption in the banking industry, the financial sector is projected to spend USD 552 million in 2018 on blockchain. The distribution and services sector is projected to spend USD 379 million in 2018, followed by the manufacturing and resources sector at USD 334 million.
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