Industries around the globe are set to spend $2.9 billion in creating and deploying Blockchain platforms for different use cases. The IDC report that reveals this information has been published in the Worldwide Semi-Annual Blockchain Spending Guide that has been recently upgraded to take into account the prevailing trends.
This report comes amid bearish trends in the Cryptocurrency market and defies expectations of clients giving Blockchain a wild berth to avoid holding Digital Tokens. However, it is evident that the benefits of Blockchain by far outweigh the risks of Crypto volatilities.
Blockchain Spending To Surge By 88.7%
The forecast for the spending paints a picture of the desirability of distributed ledger technology in various industries.
In this regard, the IDC shows that industries will spend a combined amount of $2.9 billion in 2019. Despite the fact that this amount is significantly lower than the revenue of some multinationals, the fact that this is an 88.7% increase in comparison to $1.5 billion spent in 2018 attests to the fact that Blockchain technology is gaining traction.
Financial Sector Is The Most Receptive Industry To DLT
In-depth analysis of the IDC report forecast confirms that global Blockchain spending will be led by the financial industry (insurance companies, banks, and securities and investment services). The industry will have a lead of $1.1 billion in the period under review.
The main factor for the high adoption rate of Blockchain technology in the financial sector especially banks is that most companies understand the concept of Cryptocurrencies. They are therefore keen to deploy Blockchain-powered platforms to benefit from the features.
Rise Of Blockchain In Finance Also Forecasted In The 2018 Tech Pro Research
The prediction of IDC also aligns with the 2018 Tech Pro Research report that studied the future of Blockchain adoption. After extensive research in various industries, the researchers discovered that 75% of respondents were confident that the financial services industry will adopt Blockchain citing the direct effect of DLT on them. At that time, leading finance platforms like SWIFT (Society for Worldwide Interbank Financial Telecommunication) were testing DLT.
IT Services Also Feature Strongly
The next industry that will have a huge demand for Blockchain technology is the IT sector. Combined with finance, the industries will account for 70% of global Blockchain spending for the year.
The demand is being driven by individual IT firms that want to automate their workflows without compromising on quality. The availability of Blockchain-toolkits such as Amazon Web Services- Amazon Managed Blockchain and Amazon Quantum Ledger Database (QLDB)- and IBM will be simplifying the process of Blockchain platforms creation and deployment.
The Remaining Industries To Account For 30% Of Spending
IDC further reveals that resources and manufacturing sectors will account for the remaining 30% global Blockchain spending with $642 million and $653 million respectively.
Other industries include the retail sector led by Walmart and Carrefour, professional services industries, and also distribution and services sector.
IDC (International Data Corporation) is headed by its President and CEO- Kirk Campbell. The company focuses on providing advisory services and market intelligence for different markets.