Worldwide spending on blockchain solutions is set to hit $15.9 billion in 2023 at a five-year compound annual growth rate (CAGR) of 60.2%, according to research from International Data Corporation (IDC).
The banking industry will lead the way, accounting for roughly 30% of the worldwide total throughout the forecast. Discrete manufacturing and process manufacturing will be the next largest industries with a combined share of more than 20% of overall spending.
Process manufacturing will also have the fastest spending growth (68.8% CAGR), enabling it to become the second largest industry for blockchain spending by the end of the forecast period. Four other industries (discrete manufacturing, professional services, retail, and utilities) will also grow faster than the overall market.
The banking industry will also drive spending on two of the largest blockchain use cases – cross border payments and settlements and trade finance and post-trade/transaction settlements. Spending on lot lineage/provenance and asset/goods management use cases will be led by steady investments from the discrete manufacturing, process manufacturing and retail industries.
Spending on blockchain solutions in the United States will be nearly $1.1 billion in 2019, making it the largest geographic market, followed by Western Europe ($661 million) and China ($304 million).
“While the debate continues as to whether cryptocurrencies are a solution in search of a problem, many organisations and enterprises have realised that blockchain solves many current and impending business problems. Many blockchain projects are gaining steam as players across the value chain realise the significant progress blockchain brings, launching much-needed transformation within and across industries and use cases,” says Stacey Soohoo, research manager, Customer Insights & Analysis.
“With enterprises moving past the proof-of-concept phase, it’s not a matter of whether blockchain is here to stay but rather the scope of blockchain’s adoption. Sharing data between institutions, simplifying outdated processes, and bringing transparency to business processes while also encouraging collaboration and partnerships – these are the tangible benefits that blockchain brings to the table.”