The money spent on blockchain technology by enterprises wishing to use its trust building features is projected to increase to $2.9 billion by the end of the year. This represents an increase by 88.7% over the $1.5 billion that was spent in this space last year.
These numbers have been derived from the International Data Corporation (IDC) who updated its “Worldwide Semiannual Blockchain Spending Guide.” According to somebody from the IDC, blockchain technology has moved out of its phase of being in design and has moved into real use and this transformation will lead to high spends for the rest of the year.
The report from the IDC claims that the financial sector will still be the big spenders on blockchain technology this year. The estimated spend in the financial sector is $1.1 billion. This will come from banking, securities and investment services and insurers.
Manufacturing and resources are other big sectors from where a significant investment in blockchain will come from. These sectors will spend $653 million in total.
The Distribution and services industries are expected to invest $642 million in the exploration and implementation of blockchain this year.
The Vice President of Customer Insights and Analysis programme at IDC, Jessica Goepfert, says that the technology is still at an early stage and that enterprises are still in the explosive innovation phase:
“The use cases that comprise the blockchain opportunity are developing as swiftly as the technologies enabling it. While spending for more developed use cases in the financial sector like trade finance and cross-border payments is still healthy and growing strong, relative to six months ago we’ve seen an acceleration in spending across a variety of other areas, such as energy settlements and warranty claims.”
The report documents the five year period between 2018 and 2022 and says that the expectation is that the total amount spent on blockchain will hit $12.4 billion by 2022.
James Webster, a director of research at Worldwide Blockchain Strategies made a statement of the predicted increase in blockchain spending:
“Blockchain is maturing rapidly, and we have reached an inflection point where implementations are moving quickly beyond the pilot and proof of concept phase.”
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