- The Republic of Georgia to Exempt Crypto Holdings from Value-Added Tax
- US Lawmakers Push to Keep Big Tech Out of the Financial World with New Proposed Legislation
- Fundstrat's Tom Lee: Bitcoin Could Reach $40K by Q4 Thanks to President Trump
- Various Applications of Blockchain Technology
- Judge Sends Owner of Crypto Trading Platform Bitfunder to 14 Months in Prison
According to a recent report titled “Worldwide Semiannual Blockchain Spending Guide” published by International Data Corporation (IDC), the global spending on blockchain solutions will reach a new mark of $2.9 billion in 2019, up by 88.7 percent from the previous year’s spending of $1.5 billion.
Leading market intelligence and advisory firm IDC is also expecting the worldwide blockchain spending, for the period from 2018-2022, to grow at 5-year compound annual growth rate (CAGR) of 76% which will take the global blockchain spending to a new high mark of $12.4 billion in 2022. Blockchain spending will most likely be led by the finance and banking sectors followed by the manufacturing and resources sector and the distribution and services sector. IT and business services are also expected to contribute the lion’s share of 70% in global blockchain spending.
The finance and banking sector will fuel the global blockchain spending with an investment volume of more than $1.1 billion. Borderless transactions & settlement and post international trades & settlement are the two main blockchain use cases that will drive the banking sector to spend in millions. According to the report, both of these use cases are expecting to attract investments of $453 million and $285 million, respectively.
The second largest spender, the manufacturing and resources sector is estimating to spend $642 million this year followed by distribution and services sector that will be led by retail and professional services industries is expecting to spend $642 million. Talking about CAGR overtime period of 5 years, the manufacturing and resources sector will see a tremendous growth in blockchain spending with a 5-year CAGR of 77.6 percent. Distribution and services sectors will grow at a 5-year CAGR of 77.1 percent.
Focusing on IT and business services, their combined blockchain spending covers 70% of global spending. Blockchain-based software development will be the leading sector in blockchain spending, followed by blockchain-based IT services are expecting to grow at CAGR of 81.2% and 82.8%, respectively.
Breaking down the blockchain spending at a regional level, the United States will see the largest blockchain spending volume at $1.1 billion over the course of 2019. That will be followed by Western Europe and China’s blockchain spending of $674 million and $319 million, respectively. All nine countries presented in the report are expecting to witness phenomenal spending growth in the coming five years. Japan and Canada will the trend with five-year CAGRs of 110% and 90%, respectively.