If you’re one to keep an eye on blockchain, brace yourself: seismic shifts are on the horizon. According to a newly released report by the International Data Corporation (IDC), global spending on blockchain solutions is expected to skyrocket, reaching a staggering $19 billion by 2024. That’s a monumental climb from the estimated $6.6 billion in 2021—a five-year compound annual growth rate (CAGR) of an eye-watering 48.0%.
Interestingly, the financial sector is the pacesetter in this financial revolution, accounting for nearly 30% of total worldwide blockchain spending last year. Despite this lion’s share, the banking industry’s contribution is predicted to recede modestly by 2024. Cross-border payments and trade finance emerge as the linchpins driving blockchain adoption within banking.
Yet, don’t be fooled into thinking this is solely a banking narrative. Process and discrete manufacturing sectors follow closely, making up over 20% of all global blockchain spending. Here, the blockchain’s value is primarily felt in lot lineage and provenance—a critical need in the complex world of global manufacturing.
But wait, there’s more. Sectors such as professional services, retail, and insurance are also dipping their toes into blockchain waters, employing the technology for seamless tracing of product and payment flows. Hold on to your hats because the fastest climbers on this steep hill are professional services with a 56.0% CAGR, government bodies at a 53.3% CAGR, and the healthcare sector with a CAGR of 52.7%.
James Wester, IDC Worldwide Blockchain Strategies’ research director, conveyed the urgency: “The COVID-19 crisis underscored the vital need for resilient, transparent supply chains across a multitude of sectors. It’s spurred businesses globally to beef up investments in blockchain technology.” Adding texture to this, Stacey Soohoo of IDC Customer Insights and Analysis, noted, “We’re at a crossroads where successful pilots have demonstrated the technology’s merits. However, the key to wider blockchain adoption lies in a collective will to collaborate across the entire value chain.”
In short, the tectonic plates of the global blockchain market are shifting, and no sector remains untouched. Brace yourselves; we’re in for a transformative ride.
