IDC Report: By 2023 $16 Billion Will Be Spent On Blockchain Solutions
International Data Corporation (IDC) published a report, stating that by 2023 global spending on blockchain-based products and services will surpass $16 billion at a 60.2% compound annual growth rate (CAGR).
IDC’s report provides data for blockchain solutions based on several aspects: regional, use case, buyer, vertical industry, and technology. The IDC projection for 2019 is the blockchain industry to experience an 80% increase in sales, compared to 2018. Around 20% of the total spending is anticipated to come from discrete manufacturing. Banks and other institutional organizations will comprise a 30% of all blockchain investments by 2023.
70% of corporate expenditures of IT companies and IT sevices providers will go towards “Research and development” (R&D). The development of blockchain platforms will be of higher cost to the IT companies, followed by services development.
In terms of spending by geographical regions, the United States are expected to be the largest investor in blockchain technology with $1.1 billion total expenditures. The runner-up with $661 million is anticipated to be Western Europe, and the third placed will be shared between China and Japan with around $304 million. The report also shows that Canada will have the highest growth, in terms of increasing investments at the 73.3% CAGR rate.
James Wester, IDC’s Worldwide Blockchain Strategies Director, noted that mass adoption of Blockchain technology is near its tipping point, despite regulatory setbacks and uncertainty.
“Businesses finally realized the true value of Blockchain solutions, apart from using Blockchain for Identity management, exchanges and financial services. The pilot projects are coming into real production, which is encouraging”, Wester added.
This is not the first time the IDC releases prediction reports. This spring, the IDC predicted that the U.S. federal government will include in their agenda raises on blockchain technology spending to exceed $123 million by 2022. This would be a huge increase of over 1000% for the small period of only 5 years.