According to an update to the Worldwide Semiannual Blockchain Spending Guide by the International Data Corporation (IDC), blockchain spending is predicted to grow at a staggering rate between 2019 and 2023.
Based on current data, the IDC projects a compound annual growth rate (CAGR) of 60.2% over the next five years. This easily eclipses the 18.7% expected for the Internet of Things (IoT) connectivity market, while dwarfing estimates for the virtual reality, internet access, and OTT video industries.
By the end of 2019, blockchain spending is expected to reach $2.7 billion, up more than 80% compared to 2018’s figures as the industry ballons to new heights.
Much of this growth is likely owed to enterprise investment in the new technology since practically every major corporation appears to be dabbling with blockchain, while several others have already spun-off blockchain-based products.
Of the impressive 60.2% year on year growth expected for the industry, spending in the banking sector is expected to encompass almost a third (30%) of this total. Beyond this, discrete manufacturing and process manufacturing combined will encompass over 20% of this spending, indicating significant growth ahead for blockchain-enabled manufacturers.
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As might be expected, the IT and business services sectors will account for the vast majority of blockchain spending over the next five years and is projected to make up 70% of blockchain spending in 2019.
According to the data laid out in the report, the United States will account for more than $1.1 billion in blockchain spending in 2019 alone. This will be followed by Western Europe ($661 million) and China at $304 million. However, over the five year period, Canada is expected to lead the way in terms of year on year growth, with a CAGR of 73.3% projected.
Overall, though the blockchain industry has become increasingly diverse and grown to encompass several other technologies, it appears that big things are still on to come. Meanwhile, on the cryptocurrency side of things, Bitcoin’s big year may be thanks to institutional investors.
With blockchain spending expected to grow by more than 300% by 2023, how do you imagine the industry will change during this time? Let us know your thoughts in the comments below!