Global spending on blockchain solutions will reach $2.9 billion in 2019, according to a recent report from advisory services firm International Data Corporation (IDC) published on March. 4.
The report dubbed “Worldwide Semiannual Blockchain Spending Guide” was prepared by market intelligence and advisory firm IDC. The report analyzes the emerging blockchain market evaluating spending data for 10 technologies across 19 industries and 15 use cases in nine geographic regions.
The report forecasts that blockchain spending will be nearly $2.9 billion in 2019, up by 88.7 percent from the $1.5 billion spent last year. For the period from 2018 to 2022, blockchain spending will purportedly see a compound annual growth rate (CAGR) of 76 percent, with total spending reaching the $12.4 billion mark in 2022.
The major driver of blockchain spending growth will purportedly be the financial sector, with an investment volume of more than $1.1 billion. That is followed by the manufacturing and resources sector led by the retail and professional services industries, which will see blockchain spending of $653 million and $642 million this year, respectively.
Cross-border payments and settlements along with trade finance and transaction settlements will get the most investment in 2019, which will purportedly amount to $453 million and $285 million, respectively. The banking sector will reportedly allocate the most investments in both cases.
Per the report, IT and business services will jointly see about 70 percent of all blockchain spending in 2019, while blockchain platform software will be the biggest sector of spending outside of the services category, with a five-year CAGR of 81.2 percent.
The breakdown at the regional level found that the United States will see the largest blockchain spending this year, amounting to $1.1 billion, which is followed by Western Europe and China, with $674 million and 319 million, respectively. The report adds:
“All nine regions covered in the spending guide will see phenomenal spending growth over the 2018-2022 forecast period led by Japan and Canada with five-year CAGRs of 110 percent and 90 percent, respectively.”
In February, a report from Infoholic Research LLP projected that the global blockchain in energy utilities market is expected to grow by 60 percent by 2024. The global blockchain in energy utilities market was assessed to be $210.4 million in 2018, and is reportedly expected to reach $3.4 billion by 2024.