Financial Services and the United States to Drive Blockchain Spending in 2019
Global blockchain spending is likely to surge by close to 89% from 2018 to an estimated $2.9 billion according to a new report published by International Data Corporation, a market-research firm based in the USA. The report, titled ‘Worldwide Semiannual Blockchain Spending’ analyses blockchain spending across various industries and geographies.
IDC predicts global blockchain spending to grow rapidly between 2018 and 2022, with a five-year CAGR of 76 percent. The report forecasts that total global spending in blockchain will climb to $12.4 billion in 2022.
Expectedly, the report claims that the financial services sector will lead the way in blockchain spending with an investment of more than $1.1 billion in aggregate across banking, insurance, and capital markets. The financial services industry has been the most enthusiastic and among the earliest adopters of blockchain technology with several live applications in cross-border payments, trade finance, and post-trade settlements. The IDC report notes that these use cases will continue to receive the bulk of the investment totaling $738 million.
The report predicts the manufacturing and resources sector will receive blockchain related investment of $653 million in 2019 followed closely by the services and distribution sector which will receive $642 million. Both sectors will see impressive growth during the period 2018-2022 with CAGR of more than 77%.
There have been a number of promising applications of blockchain in manufacturing and supply chain over the last 12 months. Carrefour, the French retail giant, has launched a blockchain-powered product to track its milk supply chain. Similarly, Walmart has developed a food safety blockchain solution for tracking its suppliers of leafy green vegetables.
The United States will be the largest geography in terms of blockchain spending in 2019 with an estimated outlay of $1.1 million. Western Europe and China follow a fair way behind with $674 million and $319 million predicted in blockchain investments in 2019.
Stacey Soohoo, Research Manager for IDC’s Customer Insights & Analysis team, said that while 2018 was a year of breakthroughs in blockchain such as “mainstream acceptance by large enterprises”,2019 will “rely heavily on reshaping the ideology of a blockchain revolution,” to drive mainstream adoption.