The emerging technology of Blockchain is evolving into an important factor in the transformation of financial services worldwide. Even after the Covid-19 crisis, investment in Blockchain continues, a fact that is reflected in the estimates for the progress of the market in 2020.
According to a report by IDC (Worldwide Blockchain Spending Guide Worldwide), the market value of Blockchain will reach 4.3 billion dollars this year, up 57.7% from 2019, when it reached the number of 2.7 billion dollars. However, growth projected for 2020 is limited by 7.7% compared to the initial – before the pandemic – estimates for the development of the Blockchain market.
Analysts expect the market to continue to grow in value at least until 2023, at an average annual rate of 57.1%, to reach the end of the reference period of 14.4 billion dollars.
The United States will remain the world’s leading power in the Blockchain market for 2020, with Western Europe following in second place and the Asia-Pacific region being the next one, accounting for about 19.3% of total spending in 2020. A total of nine areas the company is considering are expected to have double-digit growth rates for Blockchain by 2023, led by Central and Eastern Europe and Western Europe.
The report of Worldwide Blockchain Spending Guide Worldwide includes a total of 9 regions. United States, Canada, Japan, Western Europe, Central and Eastern Europe, the Middle East and Africa, Latin America, PRC, and Asia/Pacific. Also covers ten technology markets. Across hardware, software, and services groups: hardware — servers, external storage system, network equipment, IaaS, and other hardware, software — blockchain platform, security software, and other blockchain software services — business services and IT services. Not to forget to mention that the report extends to 19 industries. Banking, insurance, securities and investment services, discrete manufacturing, process manufacturing, construction, resource industries, retail, wholesale, professional services, personal and consumer services, transportation, healthcare provider, federal/central government, state/local government, education, telecommunications, media, and utilities.
Like all technology investments, spending on Blockchain projects was affected in the short term by the effects of the Covid-19 pandemic. As investment in technology recovers, however, the cost of Blockchain may return to normal earlier than many traditional technologies, the analysis notes.
«Companies that adopted the technology early have already experienced significant benefits during the first months of the Covid-19 pandemic: better control of their supply chain, better traceability of goods and the ability to maintain a controlled product history. As a result, Blockchain technology has proven to be a lifesaver for some businesses», explains IDC.
According to IDC analysis, the sectors related to hospitality and tourism, such as transportation, personal and consumer services, are expected to be the most negative markets for Blockchain, as well as construction. In particular, spending on Blockchain is expected to fall by 9.5% or more in those sectors.
Meanwhile, while the financial sector will see a total slowdown in spending, banking services, securities, investment services, and the insurance industry are expected to invest more than 1.6 billion dollars in blockchain solutions by 2020.
It is worth mentioning that IDC’s Worldwide Blockchain Spending Guide provides guidance on the expected technology opportunity around this market at a regional and total worldwide level. Segmented by industry, use case, and technology component, this guide provides IT vendors with insights into both large and rapidly growing market segments and how the market will develop over the coming years.
The Worldwide Blockchain Spending Guide examines the blockchain opportunity from a use case, a technology, an industry, a deployment type, and a geography perspective. This comprehensive database delivered via IDC’s Customer Insights query tool allows the user to easily extract meaningful information about the blockchain technology market by viewing data trends and relationships and making data comparisons.