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Global Blockchain Solutions Spending To Reach $15.6 Bln In 2023: IDC

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Global blockchain solutions spending is expected to reach nearly $15.9 billion in 2023, according to a report by the International Data Corp. or IDC. The banking sector and the United States will lead the sector wise and region wise spending, respectively, the study shows.

In its Worldwide Semiannual Blockchain Spending Guide, IDC reported that the year 2019 will see blockchain spending growing 80 percent to $2.7 billion from the $1.5 billion in 2018.

The Guide quantifies the emerging blockchain market by providing spending data for ten technologies across 19 industries and 17 use cases in nine geographic regions.

There is still some uncertainty regarding the technology, specifically in the areas of governance and regulation, but adoption of blockchain for financial services, identity, trade, and other markets is encouraging, the study says.

The banking industry is expected to account for about 30 percent of the worldwide total throughout the five-year forecast period. Cross border payments and settlements as well as trade finance and post-trade/transaction settlements are two of the largest blockchain use cases to receive the most investment in the banking industry.

From the technology perspective, IT services and business services on a combined basis would account for nearly 70 percent of all blockchain spending in 2019. Blockchain platform software will be the largest segment of spending outside of the services category and the second fastest growing category overall.

On a geographical basis, the United States will see the largest blockchain spending in 2019 of nearly $1.1 billion, followed by Western Europe with $661 million and China with 304 million. Canada is expected to see the largest spending growth at a five-year CAGR of 73.3 percent.

Over the 2018-2023 forecast period, blockchain spending is expected to grow with a five-year compound annual growth rate of 60.2 percent. As per the study, the process manufacturing sector will see the fastest growth in spending with a five-year CAGR of 68.8 percent.

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