According to data from International Data Corporation’s Worldwide Blockchain Spending Guide, organizations are forecast to spend nearly $6.6 billion on blockchain solutions in 2021, a 50% increase compared to 2020. Blockchain spending will continue to grow at a CAGR of 48% through 2024.
In 2021, the leading use case for blockchain is cross-border payments and settlements, while the second largest is lot lineage/provenance. Other leading use cases include trade finance, asset/goods management and identity management.
"This is an important time in the blockchain market as enterprises across markets and industries continue to increase their investment in the technology. The pandemic highlighted the need for more resilient, more transparent supply chains, healthcare delivery, financial services, and so much more, and enterprises around the world have been investing in blockchain to provide that resiliency and transparency," said James Wester, research director, Worldwide Blockchain Strategies. "What is also very important right now is that we are seeing real interest and investment by corporations, financial institutions, and even governments in areas they previously viewed with some uncertainty such as cryptocurrencies, digital assets, central bank digital currencies, decentralized finance, and stablecoins. This investment will have major implications in a very short time on everything from retail to financial services to capital markets."
- From an industry perspective, banking leads the way in blockchain spending, accounting for nearly 30% of the worldwide total in 2021.
- The industries that will see the fastest growth in blockchain spending over the forecast period are professional services (56.0% CAGR), state/local government (53.3% CAGR), and healthcare (52.7% CAGR).
- Spending on blockchain solutions in the United States will be nearly $2.6 billion this year, making it the largest geographic market, followed by Western Europe ($1.6 billion) and China ($777 million).
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