Worldwide Enterprise Blockchain Spending to Reach $2.9 Billion in 2019
Worldwide spending on blockchain solutions is forecast to be nearly $2.9 billion in 2019, an increase of 88.7% from the $1.5 billion spent in 2018, according to a newly updated Worldwide Semiannual Blockchain Spending Guide from International Data Corporation (IDC). IDC expects blockchain spending to grow at a robust pace over the 2018–2022 forecast period with a five-year compound annual growth rate (CAGR) of 76.0% and total spending of $12.4 billion in 2022.
“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. Understanding how and where enterprises are investing their money gives vendors a better sense of where they need to deliver products and services as well as offering technology buyers insight into how their peers are adopting blockchain. It also provides a snapshot of where we can expect to see this new technology disrupt the way enterprise software is delivered,” said James Wester, research director, Worldwide Blockchain Strategies.
Global blockchain spending will be led by the financial sector, where the banking, securities and investment services, and insurance industries will invest more than $1.1 billion (combined in blockchain solutions this year. The manufacturing and resources sector, driven by the discrete and process manufacturing industries, and the distribution and services sector, led by the retail and professional services industries, are forecast to see blockchain spending of $653 million and $642 million respectively this year. The manufacturing and resources sector will see the fastest growth in blockchain spending over the 2018–2022 forecast with a five-year CAGR of 77.6%, followed closely by the distribution and services sector with a CAGR of 77.1%.
Cross border payments & settlements and trade finance & post-trade/transaction settlements are the two blockchain use cases that will receive the most investment ($453 million and $285 million, respectively) in 2019. The banking industry will be the largest investor in both use cases. Manufacturing will focus much of its blockchain investment in lot lineage/provenance use cases and asset/good management use cases while identity management use cases will receive significant investments from the banking, government, and healthcare provider industries.
“The use cases that comprise the blockchain opportunity are developing as swiftly as the technologies enabling it. While spending for more developed use cases in the financial sector like trade finance and cross-border payments is still healthy and growing strong, relative to six months ago we’ve seen an acceleration in spending across a variety of other areas, such as energy settlements and warranty claims. We are continuing to monitor and measure these developments on a regular basis and are inspired by the various forms of innovation blockchain delivers,” said Jessica Goepfert, program vice president, Customer Insights & Analysis.
Read more: https://www.idc.com/getdoc.jsp?containerId=prUS44898819
Augusta HiTech is a leading blockchain technology company in the USA. We have delivered more than 10 blockchain solutions in Hyperledger and Ethereum across numerous sectors like Finance, banking, Insurance, Healthcare, Medical, Supply chain, agriculture, Human Identity, etc. To know more about our blockchain success stories and case studies, reach us at https://augustahitech.com/contact.html or dial at (866)-962–1010 for a quick consultation.
