IDC: Blockchain Solutions Spending to Reach $16 Billion by 2023

The research firm International Data Corporation (IDC) released a new report on August 8th, predicting that total spending on blockchain technology will reach $15.9 billion in 2023. The report forecasts strong growth in total spending from 2018 to 2023, with a compound annual growth rate (CAGR) of 60.2%.

Blockchain Spending to Grow by 80% in 2019
The Global Blockchain Spending Guide for the first half of the year released by the research firm covers 9 regions globally and predicts expenditure data for the blockchain sector based on factors such as technology markets, real-world use cases, and vertical industries.

The research indicates that enterprises utilizing blockchain solutions in 2019 will see an 80% growth in spending compared to 2018. The banking industry is expected to hold the largest share, reaching 30% of the global industry.

20% of the expenditure will come from discrete manufacturing and manufacturing processes, with the latter's spending also expected to grow rapidly, with a compound annual growth rate of 69.8%.

In terms of blockchain technology development, it is estimated that information technology and business services combined will account for 70% of global spending, with blockchain platforms becoming the largest investment area outside of the service industry.

In terms of global regional distribution, the United States is projected to spend nearly $1.1 billion on blockchain in 2019, followed by Western Europe at $661 million and China at $304 million.

The report indicates that blockchain spending growth is expected to significantly increase in all 9 regions analyzed, with Canada having the highest compound annual growth rate at 73.3%.

Regarding the widespread adoption of blockchain technology, IDC Global Blockchain Strategies Research Director James Wester commented that while there are still uncertainties in the governance and regulation of blockchain systems, enterprise adoption is accelerating:

Enterprises are understanding the benefits of using blockchain to enhance efficiency and improve processes, including applications in financial services, identity verification, trade, and other markets.

Research Manager at the firm, Stacey Soohoo, emphasized:

As enterprises that have adopted have moved beyond the pilot phase, the question is no longer whether blockchain technology exists, but rather how broad its applications can be. It can share data between institutions, simplify outdated processes, and bring transparency to business processes, all of which are the practical benefits of blockchain.

It is understood that IDC expects the U.S. federal government to increase blockchain spending to $123.5 million by 2022, with a growth rate exceeding 1,000% over five years.

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