The latest IDC report released on August 8 indicates that the worldwide blockchain spending will be reaching nearly $15.9 billion in 2023.
Blockchain spending will achieve a five-year compound annual growth rate (CAGR) of 60.2 percent throughout the 2018-2023 forecast period. Blockchain spending in 2019 is forecast to be $2.7 billion, an increase of 80 percent over 2018.
The growth and adoption of blockchain by enterprises is accelerating as the deployment of blockchain technology will increase efficiency and improve processes. There is uncertainty still regarding the technology, specifically in the areas of governance and regulation, James Wester, research director, Worldwide Blockchain Strategies, said.
IDC report said the adoption of blockchain for financial services, identity, trade, and other markets is encouraging.
Banking industry will account for roughly 30 percent of the global blockchain spending. Discrete manufacturing and process manufacturing will account for a combined share of more than 20 percent of overall blockchain spending.
Process manufacturing will become the second largest industry for blockchain spending by the end of the forecast period.
Four other industries (discrete manufacturing, professional services, retail, and utilities) will also grow faster than the overall market.
The banking industry will spend on cross border payments & settlements and trade finance & post-trade/transaction settlements.
Discrete manufacturing, process manufacturing, and retail industries will spend on lot lineage/provenance and asset/goods management.
The United States will be spending nearly $1.1 billion on blockchain solutions in 2019. Western Europe will be spending $661 million on blockchain solutions in 2019.
China will be spending $304 million on blockchain solutions in 2019.
Many blockchain projects are gaining steam as players across the value chain realize the significant progress blockchain brings, launching much-needed transformation within and across industries and use cases, said Stacey Soohoo, research manager, Customer Insights & Analysis.