IDC Report: Worldwide Blockchain Spending To Reach $16 Billio By 2023
The total worldwide spending on blockchain-based solutions is forecasted to reach about $16 billion in 2023.
According to a report published on August 8th, International Data Corporation (IDC), a market research firm based in the United States said that the overall expenditure on the blockchain technology would hit $15.9 billion in 2023, at a compound annual growth rate (CAGR) of 60.2% from 2018-2023.
Blockchain spending in 2019 to rise by 80%
The Worldwide Semi-annual Blockchain Spending Guide by IDC contains an analytical study of spending details for the sector of blockchain technology from a vertical, regional, buyer, technology, and use case perspective.
In 2019, blockchain spending will expect to see a rise of 80% from 2018, as said in the latest report. The banking industry will hold the maximum share of investment –at a rate of 30% throughout the forecasted years.
20% of the total spending is expected to come from process manufacturing and discrete manufacturing. Process manufacturing, in particular, is forecasted to have the fastest spending growth of any other industry, at a CAGR of 69.8%.
Business and IT services are expected to add up to 70% of the global expenditure when it comes to blockchain tech specifically. Blockchain platform software is said to be the largest sector of investment along with the services industry.
The United States, in terms of geographical analysis, will spend about $1.1 billion on distributed ledger technology in 2019, the second-largest market is western Europe at $661 million, followed by China at $304 million.
In IDC’s exact words, blockchain spending growth is expected to be “phenomenal” across all the analyzed nine regions; and Canada is expected to have the highest CAGR at more than 73.3%
Interpretation of the hard data
James Wester, IDC’s Worldwide Blockchain Strategies Research Director, explained that enterprise adoption has reached a high point across the various applications, even though there are some uncertainties surrounding the regulation of blockchain-based systems.
“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.”
His colleague, Stacey Soohoo, a member of IDC’s Customer Insights & Analysis unit, underscored that it will no longer be a matter of whether blockchain will be an everlasting feature of the technological systems, but rather, how far its potential will reach.