IDC Predicts Global Blockchain Expenditure to Hit $17.9 Billion in 2024

IDC Predicts Global Blockchain Expenditure to Hit $17.9 Billion in 2024

The latest Worldwide Blockchain Spending Guide published by IDC forecasts that the worldwide expenditure on blockchain will reach $4.1 billion in this year alone, 50% more than what it was last in 2019. Keeping up a steady pace of growth, with a five-year compound annual growth rate (CAGR) of 46.4%, it will hit $17.9 billion in 4 years, that is by 2024. 


Although the COVID-19 pandemic induced economic downturn has not spared any industry, as traditional assets continued to plummet down in value, many investors have taken an interest in what blockchain has to offer. James Wester, research director, Worldwide Blockchain Strategies says: 


The issues faced by the global economy due to COVID-19 and the efforts to contain it have caused nearly every industry, market, and sector to re-evaluate core processes. This has accelerated interest and investment in digital transformation, which includes blockchain and distributed ledger technology.” 


Blockchain players outstrip gold and bitcoin 


As soon as the pandemic hit and the value of traditional tech stocks fell, many investors pulled out their money from traditional stocks and plowed it into either gold or its widely acclaimed digital counterpart Bitcoin. But now, other blockchain ventures are giving these glittery investments a run for their money. Recent trends show that they are more tangible than investing in gold or bitcoin. For example, instead of buying Bitcoin or gold, if you had diversified your portfolio to accommodate companies on board with blockchain technology, you would have benefited a 54% return on your money despite the pandemic. Although investors don’t really care for the technology or the explanation for the increased returns on blockchain ventures, the fact that they have outperformed the traditional assets is more than enough for them to embrace blockchain. 


The pandemic simply exposed the vulnerabilities and weaknesses in supply chains, financial services, and many more industries. As enterprises look at ways to address those vulnerabilities and weaknesses, they are recognizing that blockchain and distributed ledger technology, by improving visibility and increasing efficiencies across value chains, are the perfect tools to not only fix existing problems but build entirely new markets and services, added Wester.


Geographical and industry-wise growth


According to the IDC, the USA is one of the largest geographic markets for blockchain technology. The US has spent than that $1.6 billion on blockchain followed by Western Europewith around $1.0 billion and China with $457 million. More than 25% of the spending will be in the banking industry as explained by the rising interest in DeFi. Cross-border payments and settlements, trade finance and post-trade/transaction settlements, and transaction agreements will attain usability and become more common. 


Manufacturing industry (process & discrete) will also claim around 25% of the expenditure. They will continue to upgrade their technology and invest in blockchain at rates faster than the estimated overall market growth. Interestingly, the fastest growth will be recorded in neither of these sectors, but professional services with a CAGR of 54%. Advertising, healthcare, and state/local government investment in blockchain are expected to steadily grow in the coming years. 


On the other hand, a report by PwC and CV VC, a Swiss blockchain investment company, predicts that blockchain is set to foray into industries that have for long been unfamiliar with the technology. The study identifies eight key areas where blockchain technology will become the norm in the near future - art, brokers, crypto banks and exchanges, custodians, market makers, platforms and protocols, token issuance platforms and venture capitalists. Blockchain adoption will enable them to monetize their work across the border without relying on third-party intermediaries.


Founders around the world are attracted to technologies like blockchain, driven by the need for decentralization, transparency and accountability,” says the report.


Will the pandemic facilitate the mass adoption of blockchain technology?


It sure seems so. 


“Pre-pandemic demand was largely speculative. People saw bitcoin had a spectacular run and wanted to be part of that game, so what’s wrong with putting in 1% of assets under management [into BTC], but I think post-pandemic is beyond speculative. It’s more about, ‘This thing has fixed circulation, it will not be debased.’ People are worried about dollar outflow and wondering if they should hold crypto in addition to gold as a safe-haven currency.”  Taimur Baig, the managing director of DBS Bank said in an interview. 


The outbreak of COVID-19 has not just awakened the interest of investors, but also laymen. Many see digital assets as an alternative to traditional stocks and as a way to protect their finances against worrying inflation risk. They guarantee credibility with smart contracts and a system-based circulation, but since their value is not directly related to how well a country performs economically, their volatility will be independent. This is two birds in one shot for many. Cryptocurrencies and blockchain tokens will act as a safe haven for investors in countries going through a currency crisis or episode of hyperinflation so long as their value is not pegged to that of a traditional currency. 


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What makes Armacoin advertising truly unique is our native coins on the platform - Armacoin GZM coins. They will be used for transactions on the platform as well as for the tokenized advertising put forth by Armacoin. This way, the platform not only safeguards the interests of the advertisers and publishers, but also the audience. If you are looking to reap the benefits of the increasing interest in blockchain, Armacoin will be a great place for you to get started. Take your leap into the decentralized world of advertising with Armacoin. 



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