Trends Suggest Blockchain Spending Will Reach $12 Billion In Next 4 Years
The International Data Corporation is a company that offers various services for brands in information technology, telecommunications, and consumer technology. In their report that was published on July 19th, 2018, they describe their expectation that blockchain solutions would experience an annual growth rate of 75% through 2022.
The report is called the “Worldwide Semiannual Blockchain Spending Guide,” and it was created by analysts at IDC. The report showed their estimate of an $11.7 billion valuation of the blockchain industry in the next four years for spending, whereas 2018 has only brought in $1.5 billion.
Additionally, the report speculated that, based on their research,
“blockchain platform software will be the largest category of spending outside of the services category and one of the fastest growing categories overall, along with security software.”
These analysts predict that much of this global spending curve will be headed up by the financial industry, saying that current banks will need to adopt the blockchain technology. This prediction is already coming to fruition, based on the $552 million spent by the financial sector in 2018 alone on blockchain.
The next sector that will follow is the distribution and services sector, since they have already invested $379 million in the technology this year.
The third sector is manufacturing and resources, which accounts for $334 million this year. In the United States, the leading sector is distribution and services. Along with the United Stated, the IDC includes seven other regions in the world, though they may also include China in the ninth position in reports that they create in the future.
In the current financial state of the world, the United States is responsible for over 36% of the spending that has been done on blockchain technology. That percentage includes cross-border payments and settlements. So far, the United States has paid up a total of $193 million to this area of interest.
Jessica Goepfert, who is the Vice President of the IDC, believes that there are multiple blockchain uses that will not subside in the near future. She said,
“We continue to see the greatest spending and growth for blockchain around lot lineage and asset and goods management … Manufacturers want to ensure products arrive where they are supposed to arrive. Retailers and wholesalers seek assurance around the validity and quality of the products they are selling. And consumers are demanding greater transparency from providers.”
To view the report in its entirety, visit idc.com/getdoc.jsp?containerId=prUS44150518. To specifically speak with Ms. Goepfert, send an email to [email protected], or call 508-988-6944.