The new update to the IDC (International Data Corporation) Worldwide Blockchain Spending Guide sees that worldwide spending on blockchain solutions may reach $4.1 billion this year, up by 50% compared to the same period in 2019.
The IDC forecast that as the disruptions brought by the COVID-19 pandemic cut across all industries, blockchain spending will continue to grow “at a robust pace throughout the forecast period with a five-year compound annual growth rate (CAGR) of 46.4%, reaching a total of nearly $17.9 billion in 2024.”
The industry analyst firm said that the banking industry will contribute significantly to blockchain spending attributing this development to the adoption of top-up use cases which include cross-border payments and settlements, trade finance and post-trade or transaction settlements, and transaction agreements.”
The banking industry is expected to maintain a strong pace of investment in blockchain with a five-year CAGR of 45.3%, the IDC said.
The IDC Guide also sees an increase in blockchain spending the process manufacturing and discrete manufacturing industries, which is seen to comprise nearly a quarter of all spending worldwide. The leading use case in both industries is lot lineage or provenance with asset or goods management a close second for process manufacturing. Both industries will continue to invest in blockchain at rates faster than the overall market with a 50.3% CAGR for process manufacturing and a 46.5% CAGR for discrete manufacturing.