Blockchain spending to reach $4.3 trillion by 2020, according to IDC
According to IDC, the world’s leading market intelligence and consulting services firm, spending on Asia/Pacific Blockchain will decline by 2020. This compares to the pre-VID-19 forecast scenario.
Currently, IDC expects Blockchain spending to grow at a moderate pace during 2018-2023. Overall, with a five-year compound annual growth rate (CAGR) of 55.3% for Asia/Pacific and 57.1% for the whole world, with global spending reaching $1.4 billion by 2023.
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Asia/Pacific and Blockchain spending
It is important to note that Asia/Pacific, in 2020, contributes about 19.3% of total world spending on Blockchain.
According to Ritika Srivastava, Associate Market Analyst at IDC Asia/Pacific:
„Companies that adopted the Blockchain technology from the beginning, have experienced significant benefits during the first months of COVID-19“.
He added: „Blockchain technology has helped companies overcome the challenges of management, medical data verification and insurance claims tracking in the Asia/Pacific region.
Spending on Blockchain will also see a moderate decline in the financial sector. While the sector will see an overall slowdown, the banking, securities and investment services and 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’s spending over the 2018-23 period, with a five-year compound annual rate of 60.5%. Closely followed by the distribution and services sector with a 58.7% compound annual rate.
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As a result, loyalty programs and equipment management will be the most affected use cases due to the pandemic. On the other hand, cross-border payments and agreements and lineage/batching are the main Blockchain use cases that will receive the largest investment in 2020.
Blockchain Global Spending Guide. Source: IDC April 2020
Blockchain’s Worldwide Spending Guide. Source: IDC April 2020
However, James Wester, Director of Global Strategy Research at Blockchain, presented:
„Like all technology investments, Blockchain’s spending has been affected in the short term by the impacts of the COVID-19 pandemic.“
He added, „As technology investment recovers, spending on Blockchain may return to normal.
Certainly, the United States will continue to see the highest spending on Blockchain in 2020. In addition, 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.