According to the Worldwide Semiannual Blockchain Spending Guide from IDC, global blockchain spending is projected to reach almost $3 billion in 2019. If the forecasts are accurate, this would be an increase of over 88 percent from the $1.5 billion spent in 2018, showing investment into the technology is increasing at a rapid pace.
IDC Publishes New Blockchain Spending Guide
Global Blockchain spending has reached its all-time high and is expected to increase as the year progresses.
IDC also expects blockchain spending as a whole to grow at a “robust pace” over the 2018-2022 forecast period. The report also forecast a five-year compound annual growth rate (CAGR) of 76 percent and total spending of $12.4 billion in 2022.
The majority of worldwide blockchain spending will be led by the finance sector, the updated guide said. Banking, securities, investment, and insurance services will be the biggest investors in blockchain solutions this year, cumulatively adding $1.1 billion into the industry.
Blockchain Finds Its Way into New Industries
A close second to the finance sector is the manufacturing and resources sector. According to IDC, the two will record a blockchain spending of $653 million and $642 million respectively. The two industries will also be the ones to see the fastest growth, reaching a five-year CAGR of 77.6 percent. The distribution and services industry will be a close second, with an estimated five-year CAGR of 77.1 percent.
According to Jessica Goepfert, the vice president of the Customer Insights and Analysis programme at IDC, the explosive growth of blockchain in these industries is enabled by the technology’s infancy.
“The use cases that comprise the blockchain opportunity are developing as swiftly as the technologies enabling it,” she explained. Geopfert also said that despite spending for more developed use cases in the fintech sector has been steadily rising, more intensive growth was recorded in areas such as energy settlements and warranty claims.
Worldwide Blockchain Strategies’ director of research, James Webster, said that blockchain technology has 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.”
Heavy investments in the blockchain industry will continue to pave the way for more innovation and adoption, based on analysis from the report.