According to IDC, the world’s leading firm for market intelligence and consulting services, Asia / Pacific spending on Blockchain will decline in 2020. All this compared to the pre-COVID-19 forecast scenario.
IDC currently expects Blockchain spending to grow at a moderate pace during the 2018-2023 period. Above all, with a five-year compound annual growth rate (CAGR) of 55.3% for Asia / Pacific and 57.1% for the entire world, with global spending that will reach $ 1.4 billion by 2023 .
Asia / Pacific and Blockchain Spending
It is important to note that Asia / Pacific, in 2020, contributes around 19.3% of total global spending on Blockchain.
According to Ritika Srivastava, Associate Market Analyst at IDC Asia / Pacific:
“Companies that adopted Blockchain technology from the beginning have experienced significant benefits during the first months of COVID-19.”
He also added: “Blockchain technology has helped companies overcome the challenges of managing, verifying medical data and tracking insurance claims in the Asia / Pacific region“
For its part, spending on Blockchain will also see a moderate decline in the financial sector. While the sector will see a general slowdown, banking, securities and investment services, and the insurance industries are still expected to invest more than $ 1.6 billion this year.
However, the manufacturing and resources sector will see the fastest growth in Blockchain spending during the 2018-23 period, with a five-year compound annual rate of 60.5%. Followed closely by the distribution and services sector with a compound annual rate of 58.7%.
As a consequence, loyalty programs and team management will be the most affected use cases due to the pandemic. On the other hand, cross-border payments and agreements and the lineage / origin of lots, are the main use cases of Blockchain that will receive the largest investment in 2020.
However, James Wester, director of Global Blockchain Strategy Research, stated:
“Like any investment in technology, spending on Blockchain has been affected in the short term by the impacts of the COVID-19 pandemic.”
In the same way he added: “As technology investment picks up, spending on Blockchain may return to normal“
Certainly, the United States will continue to see the largest spending on Blockchain in 2020. Additionally, Blockchain solutions will experience a slight slowdown in Western Europe and China, which saw a decline of more than 7% from what IDC predicted in previous forecasts.
The World Guide to Blockchain Spending vs. COVID-19
IDC is the ultimate Tech Insight source in COVID-19. Mainly, to help organizations plan their next movements in response to the pandemic.
In closing, IDC offers a range of resources including up-to-date market forecasts, research designed to keep digital transformation efforts underway, and information on changes in the workplace brought about by the virus.