A new report published on April 19 by the US market research firm, International Data Corporation (IDC), forecasts that total spending on Blockchain solutions will reach $ 6.6 billion in 2021. That is, a 50% increase in compared to 2020.
Primarily, International Data Corporation is the world’s leading provider of market intelligence, advisory services and events to the information technology, telecommunications and consumer technology markets.
IDC Forecasts Increase in Business Blockchain Spending
Consequently, IDC expects to see a five-year compound growth rate of 48% per year. Which means, nearly $ 19 billion is forecast for Blockchain spending in 2024.
In particular, IDC’s Blockchain Spending Biannual Guide provides an analysis of spending data for the Blockchain sector. Thus, from a regional and vertical perspective of the industry, the use case, the buyer and the technology.
The truth is that the most recent report foresees that the banking sector will assume most of the investment, with 30% throughout the period.
Main use for technology
By the way, in 2021, the main use case for Blockchain is cross-border payments and settlements that attract the most, while the second largest is the Lot Lineage / Provenance.
Also, other leading use cases include business finance, asset / asset management and identity management, according to IDC.
In this regard, James Wester, Director of Research on Blockchain Strategies at IDC worldwide, has pointed out that: «This is an important time in the Blockchain market, as companies from all markets and industries continue to increase their investment in the technology.».
In addition, he added: «The pandemic highlighted the need for more resilient and transparent supply chains, healthcare delivery, financial services and much more. And companies around the world have been investing in Blockchain to provide that resilience and transparency.».
«What is also very important at this time is that we are seeing real interest and investment from corporations, financial institutions. And even governments in areas that previously viewed with some uncertainty».
Other expenses on Blockchain solutions
According to the latest IDC report, in terms of industrial sectors, banking is the largest, accounting for 30% of spending. And it is expected to remain the leading sector for the next four years, although its share will decline somewhat.
While process manufacturing and discrete manufacturing are in second place with 20%. The largest expected growth is in professional services, government, and healthcare.
In terms of geographic distribution, the United States leads in Blockchain spending, accounting for nearly 40% of spending this year at $ 2.6 billion, followed by Western Europe ($ 1.6 billion) and China ($ 777 million).
Indeed, there are multiple benefits that Blockchain technology brings to businesses, among them, agility, simplicity and above all greater security, both in the management of digital identity and in transactions.
By way of closing, Blockchain begins to be a real digital need in 2021, the financial sector is leading the way in the use of Blockchain technology.What do you think about it? Let us know in the comment box.
I say goodbye with this phrase from Mariano Zabaleta: «The Blockchain is a reliable system that is changing the lives of many people. The economy goes that way».