Blockchain spending will rise to $9.2 billion in 2021, according to a report by International Data Corporation (IDC). The Worldwide Semiannual Blockchain Spending Guide forecasts compound annual growth of 81.2% for the funds spent on distributed ledger technology (DLT) from 2016 to 2021.
IDC noted that companies and organizations demonstrate increased interest in blockchain as they look for secure, immutable, and affordable solutions for various processes.
This year, global investment in blockchain is expected to touch $2.1 billion, which is more than double compared to the 2017 figure of $945 million.
IDC researchers anticipate the financial services sector to lead when it comes to spending on blockchain projects this year, with $754 million of the total. In terms of investment focus, IT and business services are expected to account for 75% of all spending between 2016 and 2021.
Stacey Soohoo, research manager at IDC Customer Insights and Analysis, said:
“2017 was the year of experimentation as enterprises realized both the benefits and challenges of blockchain. 2018 will be a crucial stage for enterprises as they make a huge leap from proof-of-concept projects to full blockchain deployments. As a leader in blockchain innovation and integration, the US will continue to invest in blockchain throughout the forecast, spending heavily in financial services, manufacturing, and other industries.”
Michael Versace, research director at IDC Digital Strategy Consulting, commented:
“Over the long-term horizon, blockchain services, including business consulting, IT consulting, custom development, and managed services, have the potential to become foundational to a new generation of enterprise IT infrastructure, resulting in a growing demand for consultants and developers and hundreds of billions of dollars of market size for the service company of the future.”
According to Versace, IDC anticipates “dramatic growth” in the blockchain developer marketplace over the next years.
“By 2021, the number of consultants and developers in blockchain services will have grown tenfold from current estimates,” he said.
In October 2017, Swiss bank UBS published a report in which it estimated that blockchain could contribute $300 billion to $400 billion of annual economic value at a global level by 2027.