By Favour Nnabugwu
Globally, the spending on Blockchain is expected to hit $4.1 billion in 2020, increasing from the $2.7 billion recorded in 2019 and an estimated growth ration of nearly 50 percent.
According to StockApp data, Blockchain is expected to maintain a 46.4 percent Compound Annual Growth Rate over the next five-year period of 2020 and 2024, even as the International Data Corporation (IDC) also states that the total spending on blockchain solutions will be nearly $18 billion by 2024.
A blockchain is a digital record of transactions. The name comes from its structure, in which individual records, called blocks, are linked together in single list, called a chain. Blockchains are used for recording transactions made with cryptocurrencies, such as Bitcoin, and have many other applications.
Meanwhile, another report from Markets and Markets indicates that the global blockchain market is estimated to be worth $3.0 billion in 2020. It is projected to grow at a 67.3 petcent CAGR between 2020 and 2025, to reach a $39.7 billion valuation by the end of the period.
The total spending in the blockchain space amounted to $1.5 billion in 2018. At the time, the financial sector was most dominant, accounting for 60% of all spending. Though it still leads in 2020, its market share is now about half of that, at 29.7 percent.
Between 2020 and 2024, the IDC predicts that the blockchain industry will maintain a healthy pace of investment at 45.3 percent CAGR. Process and discrete manufacturing will together account for 22.3 percent of all blockchain spending in 2020. While process manufacturing will grow at a 50.3 percent CAGR, discrete manufacturing will grow at 46.5 percent.
With $1.6 billion, the US will top the list globally in terms of spending while Western Europe will be second with $1.0 billion. China will take the third spot with $457 million, but it will be the leading country in terms of growth, with a 51.7 percent CAGR.
China’s blockchain spending was $87 million in 2017. It could rise as high as $1.420 billion by 2022. Prior to the pandemic, it was growing at a 65.7 percent CAGR against APAC’s 50.3 percent and the global’s 60.2percent