Global Blockchain spending to touch new highs of $2.9 Billion

According to the report titled “Worldwide Semiannual Blockchain Spending Guide” published by International Data Corporation, the global spending on blockchain solutions will reach the new mark of $2.9 billion in 2019, up by 88.7 percent from the previous year’s spending of $1.5 billion. Leading market intelligence and advisory firm IDC is also expecting the worldwide spending, for the period from 2018-2022, to grow at 5-year Compound annual growth rate or CAGR of 76% which will take the global blockchain spending to the new mark of $12.4 billion in 2022. The spending will most likely lead by finance and banking sectors followed by the manufacturing and resources sector and the distribution and services sector. IT and business services are also expected to contribute a lion share of 70% in global blockchain spending.

Finance and banking sector will fuel the global spending with an investment volume of more than $1.1 billion. Borderless transactions & settlement and post international trades & settlement are the two main blockchain use cases that will drive the banking sector to spend in millions. According to the report, both of these use cases are expecting to attract investments of $453 million and $285 million, respectively. The second largest spender, the manufacturing and resources sector is estimating to spend $642 million this year followed by distribution and services sector that will be led by retail and professional services industries is expecting to spend $642 million. Talking about CAGR overtime period of 5years, the manufacturing, and resources sector will see the tremendous growth in blockchain spending with 5-year CAGR of 77.6 percent. Distribution and services sectors will grow at 5-year CAGR of 77.1 percent.

Focusing on IT and business services, their combined spending covers 70% of global spending. Blockchain-based software development will be the leading sector in spending, followed by the based IT services are expecting to grow at CAGR of 81.2% and 82.8%, respectively.

Breaking down the blockchain spending at the regional level, the United States will see the largest blockchain spending volume at $1.1 billion over the course of 2019. That will be followed by Western Europe and China’s spending of $674 million and $319 million, respectively. All nine countries presented in the report are expecting to witness phenomenal spending growth in the coming five years. Japan and Canada will the trend with five-year CAGRs of 110% and 90%, respectively.

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