Report Shows Blockchain Spending Will Reach $2.9 Billion in 2019
The growing demand for blockchain professionals clearly showcases that the industry is booming, since more and more businesses are looking to incorporate blockchain-based tools and services into their daily activities.
In fact, a recent report published by the International Data Corporation in the Worldwide Semi-annual Blockchain Spending Guide, showcases that blockchain spending by businesses will reach a value as high as $2.9 billion by the end of the year. To put things better into perspective, only $1.5 billion was spent on developing blockchain technology in 2018, therefore we are looking at an 88.7% growth.
The main reason behind this growth isn’t a massive increase in the popularity of blockchain technology between 2018 and 2019. Rather, numerous projects are exiting the design phase, thus the technology will soon be actively used by individuals and businesses. This represents the main reason fuelling the blockchain spending growth.
It is important to point out that while blockchain holds massive potential in most industries, the financial market will back most of the investments in the space. According to the report, $1.1 billion out of $2.9 billion will be spent by businesses operating within the financial sector. This is so, thanks to blockchain’s innovatory potential in the banking, insurance, investment and securities markets.
The next industry leveraging blockchain technology is that of resources & manufacturing. Approximately $653 million will be spent by businesses looking to improve internal processes such as managing stock, ordering materials, and supervising resources expenditures. On a five-year timeframe, these industries are bound to see a massive growth, of roughly 77.6%.
It is expected that the next couple of years will encourage numerous other businesses to leverage blockchain technology. In the long run, this will lead to huge cost-savings, therefore the investment is definitely worth it. Since the technology is still in an incipient stage, implementing blockchain technology is a bit more difficult at this time. With this in mind, businesses need to find blockchain developers that can come up with new solutions. Thus, most blockchain tools are innovative in one way or another. With time, the innovation factor will recede, thus making it easier and cheaper for companies to adopt blockchain tech.
According to a press statement, given by a representative of the International Data Corporation, Jessica Goepfert, “The use cases that comprise the blockchain opportunity are developing as swiftly as the technologies enabling it. 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 acceleration in spending across a variety of other areas, such as energy settlements and warranty claims.”
Based on everything that has been outlined so far, blockchain has become a lot more than a tool for transparency and trust on the financial market. If the trend continues, the next couple of years are bound to make interacting with blockchain technology very common.