IDC, a renowned market research firm, released a report on Monday, November 4 on China’s blockchain spending, forecasting that China’s spending on blockchain technology will reach $2 billion by 2023, which represents a CAGR of 65.7%.
During the forecast period, which ranges from 2018 to 2023, the United States will still account for the most spending on blockchain at 39%, with Western Europe second and China third.
James Wester, Director of Global Blockchain Strategy Research at IDC, said: “The open discussion and debate on blockchain is becoming more intense, and companies are quietly embarking on the adoption of this technology in a number of application cases. Companies are confirming early blockchains the value of the pilot projects and their readiness to officially put them into production.”
“The data in the Expenditure Guide shows that as companies increasingly understand the benefits of blockchain technology at the efficiency and process-promoting levels, the adoption rate and growth rate of the technology are accelerating. Of course, there are some uncertainties in blockchain technology, especially at the level of government management and regulation, but the policy has correspondingly supported the application of blockchain in financial services, identity certification, trade and other markets,” Wester added.
With specific regard to China, IDC’s report highlighted that the banking sector will be the largest area of investment in blockchain, as the technology promises to increase both financial inclusion and security of sensitive data.
The other four categories that round out the top five include discrete manufacturing, retail, professional services and process manufacturing industries. These top five categories account for 73% of forecasted blockchain spending.
Xue Yu, IDC China Blockchain Market Research Manager, said: “The biggest change in China’s blockchain market in 2019 is the leadership’s adjustment of blockchain technology, which has a huge impact on clarifying market awareness and promoting technology. This impact is expected to maintain a rapid growth in China’s blockchain market spending over the next four years, reaching $2 billion by 2023.”