A More Mature Industry: Blockchain Spending Forecasted To Grow Over 80 Percent
As industries mature their usefulness becomes more apparent. For example post world war era hardly gave much importance to EDVAC or UNIVAC, they certainly didn't bank of these precursors of modern computers to amount to much. A similar story seems to be playing out with the case of Blockchain. While its benefits are quite apparent, it has its many doubters. Yet, despite all this, business seems to have picked up the pulse of the future and are increasingly looking to utilize the trust-enhancing features of distributed ledgers.
According to a recent report published by the International Data Corporation (IDC) close to $3 billion is expected to be pumped into blockchain related ventures and research. In percentage terms, this accounts for a 88% growth over last year, when the industry was “hot”. The report, Worldwide Semiannual Blockchain Spending Guide, sees numerous pointers to suggest the industry is solidifying and has learned from its recent experiences. It also sees the underlying technology moving from design into an implementation phase.
The primary drivers are still expected to be businesses in the fintech sector; in fact, they are expected to pump in nearly a third of the investment. The billion plus investment from sections such as insurance, banking, and investment services will undoubtedly continue and might even climb as the regulatory environment becomes more conducive. With a heavy focus already from the financial sector, the underlying advantages of the blockchain are best exemplified.
This has undoubtedly motivated other sectors to also step in. IDC expects the manufacturing sector to account for more than $600 million in investment followed by the distribution and services industries, who it is forecasted will invest upwards of $600 million as well. All this money is expected to go into exploring the viability of blockchain technology and implementing it where possible.
Backing up the findings, Jessica Goepfert, IDC vice president of Customer Insights and Analysis, acknowledged that the blockchain is still in its infancy. Yet there have been numerous examples of technological developments. She went on to note,
“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.”
There are high hopes from the fledgling tech, with an estimated $12 billion expected to be invested in the next five years. All these predictions are attributed to the sound design of the technology. As the director of research at Worldwide Blockchain Strategies, James Webster stated:
“Blockchain is maturing rapidly, and we have reached an inflection point where implementations are moving quickly beyond the pilot and proof of concept phase.”
It is fundamentally crucial for an industry to branch out and link with other industries. By having such an impact on multiple fields, it not only assures the continuous existence of crypto and allied services, but this will also undoubtedly usher in the next revolution, post computers. It will be interesting to see if IDC are close to the mark or their predictions were wild.