The International Data Corporation (IDC) predicts that total spending or investment in blockchain technology development will reach $19.000 billion by 2024.
Blockchain technology, which was born to support the operation of Bitcoin, The first cryptocurrency successful in the world, has become a true disruptive innovation.
The multiple use cases and applications that currently exist for this technology are driving its adoption in all industries around the world. Every day, new companies are joining, from financial and technological, to pharmaceutical, food, energy, and more, that want to adopt this technological innovation to optimize their processes.
Therefore, the International Data Corporation (IDC), a US-based market research firm, predicts that the total investment for Blockchain development will be $ 19.000 billion in 2024.
Según un report recently published by IDC, entitled “Global Spending on Blockchain Solutions Forecast to be Nearly $19 Billion in 2024, According to New IDC Spending Guide”, companies will continue to increase their investment in this technology, to develop value solutions in different spaces, which guarantee the provision of resilient and transparent services.
One of the biggest use cases for Blockchain today is the supply chain, as well as applications in finance, banking, transportation, food, tokenization of goods and real estate, and much more. Medical and assistance applications have also been strengthened with Blockchain, following the expansion of the COVID-19 pandemic around the world, which has required strict, reliable and immutable controls.
With all the potential that Blockchain offers and has yet to offer, IDC estimates that spending on the development of this technology will continue to experience strong growth during the period 2021-2024, with an estimated compound annual growth rate (CAGR) of 48.0%.
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$6,6 billion this 2021 alone
IDC estimates that in 2021 alone, investment in blockchain will grow by 50% compared to that seen in 2020, reaching 6.600 millionThis is due to the need marked by the pandemic, which intensified the demand for efficiency, resilience and transparency at all levels.
James Wester, research director at Worldwide Blockchain Strategies, noted that companies around the world have been investing in blockchain to provide resilience and transparency in their processes. But investment in this technology has also intensified due to the high demand from investors, and society in general, for technological financial products, such as cryptocurrencies, digital assets, central bank digital currencies (CBDC), decentralized finance protocols (DeFi), The stablecoins and NFT.
“Organizations are forecast to spend nearly $6.6 billion on blockchain solutions this year, an increase of more than 50% compared to 2020.”
Wester said that due to the scope and potential of this technology, investment in its development will soon have significant implications across the world, “from retail to financial services and capital markets.”
Top Blockchain Uses This Year
The market research firm emphasized that Blockchain will find its greatest applications this year in Financial solutions for cross-border payments and settlementsIn fact, major banks such as Citibank and IDB have begun experimenting with Blockchain in this area. The government of the United Arab Emirates, China and other nations are also using the technology to develop their CBDCs and test cross-border payments.
IDC continues its report by pointing out that the Lot Lineage / Provenance, to verify the origin and authenticity of a product throughout the supply chain, the Digital Identityl, the Trade Finance and more, will be Blockchain applications that will experience exponential demand and growth this 2021.
Banks, leaders in Blockchain adoption in 2021
According to the firm, the banking sector is leading the way in blockchain adoption and investment, accounting for nearly 30% of the global total this year. However, IDC believes that this sector's investment in the technology will decline by 2024, giving way to the manufacturing and fabrication industries.
Professional services, retail and insurance will also rely on blockchain technology to streamline and accelerate their processes in a secure, reliable and transparent manner.
United States, $2,6 billion this year
Government investment in blockchain technology will be led by the United States, which has invested $2.600 billion in the technology this year.
Western Europe will follow the world's leading power with an investment of 1.600 billion dollars in Blockchain, and China will be in third place, with an estimated 777 million dollars for the development of applications based on this technological innovation.
Finally, according to IDC, IT services and business services will account for more than two-thirds of all spending and investment in blockchain development over the next few years, through 2024.
IDC relies on its guidance Worldwide Blockchain Spending Guide (V1 2021), which quantifies the emerging and investment market in blockchain with data on 10 technologies for 19 industries and 17 use cases in 9 regions of the world, including the United States, Canada, Japan, Western, Central and Eastern Europe, China and Latin America.
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