Banking

A new update to the International Data Corporation’s (IDC) Worldwide Blockchain Spending Guide forecasts global blockchain spending will hit just under $19 billion (£13.5bn) by 2024.

This is compared to an estimated $6.6bn (£4.7bn) in 2021, at a five year compound annual growth rate (CAGR) of 48.0%.

The guide found that banking leads the way in blockchain spending, accounting for nearly 30% of the worldwide total in 2021. It is set to remain the top industry for blockchain spending throughout the forecast although its share of spending will diminish slightly by 2024. Primary use cases for blockchain within the banking industry include cross-border payments and trade finance.

The next largest industries for blockchain spending are process manufacturing and discrete manufacturing, which together account for more than 20% of all spending worldwide. The leading use case in both industries is lot lineage and provenance.

Following the manufacturing industries are professional services, retail, and insurance, which rely on blockchain to trace the movement of payments and products. The industries that will see the fastest growth in blockchain spending over the forecast period are professional services with a 56.0% CAGR, government with a 53.3% CAGR, and healthcare with a 52.7% CAGR.

“This is an important time in the blockchain market as enterprises across markets and industries continue to increase their investment in the technology. The pandemic highlighted the need for more resilient, more transparent supply chains, healthcare delivery, financial services, and so much more, and enterprises around the world have been investing in blockchain to provide that resiliency and transparency,” said James Wester, research director at IDC Worldwide Blockchain Strategies.

“The market is now reaching a point where successful pilots and deployments have proven the need, but other key factors such as a willingness to collaborate are needed to instil blockchain technology across the entire value chain, with every single participant needing and wanting to be a part of the network,” added Stacey Soohoo, research manager with IDC Customer Insights and Analysis.