EDITOR’S QUESTION
SHOULD ENTERPRISES
SEEK TO INVEST IN
BLOCKCHAIN AND IF
SO WHY?
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W
orldwide spending on Blockchain
solutions is forecast to be
nearly US$2.9 billion in 2019,
an increase of 88.7% from the US$1.5
billion spent last year, according to a newly
updated Worldwide Semiannual Blockchain
Spending Guide from International Data
Corporation (IDC).
products and services as well as offering
technology buyers insight into how their
peers are adopting Blockchain.
“It also provides a snapshot of where we can
expect to see this new technology disrupt
the way enterprise software is delivered.”
“Blockchain is maturing rapidly, and we
have reached an inflection point where
implementations are moving quickly beyond
the pilot and proof of concept phase,” said
James Wester, Research Director, Worldwide
Blockchain Strategies. The manufacturing and resources sector,
driven by the discrete and process
manufacturing industries, and the
distribution and services sector, led by the
retail and professional services industries,
are forecast to see Blockchain spending
of US$653 million and US$642 million
respectively this year. The manufacturing
and resources sector will see the fastest
growth in Blockchain spending over the 2018
to 2022 forecast with a five-year CAGR of
77.6%, followed closely by the distribution
and services sector with a CAGR of 77.1%.
“That is why data on the actual spend on
the technology is so vital: it provides the
context in which Blockchain is evolving.
Understanding how and where enterprises
are investing their money gives vendors a
better sense of where they need to deliver Cross border payments and settlements and
trade finance and post-trade or transaction
settlements are the two Blockchain use
cases that will receive the most investment
(US$453 million and US$285 million,
respectively) in 2019.
IDC expects Blockchain spending to grow
at a robust pace over the 2018 to 2022
forecast period with a five-year compound
annual growth rate (CAGR) of 76.0% and
total spending of US$12.4 billion in 2022.
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INTELLIGENTCIO
The banking industry will be the largest
investor in both use cases. Manufacturing
will focus much of its Blockchain
investment in lot lineage or provenance use
cases and asset or good management use
cases while identity management use cases
will receive significant investments from
the banking, government and healthcare
provider industries.
“The use cases that comprise the Blockchain
opportunity are developing as swiftly as
the technologies enabling it,” said Jessica
Goepfert, Program Vice President, Customer
Insights and Analysis.
“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.
“We are continuing to monitor and measure
these developments on a regular basis
and are inspired by the various forms of
innovation Blockchain delivers.”
www.intelligentcio.com