Driven by reductions in IT budgets and the bleak economic growth due to the pandemic, IDC forecasts spending in blockchain technologies will slow down. Despite a slower growth rate, the blockchain investment is forecast to increase in select sectors.
The leading analyst firm noted global spending on blockchain solutions could reach $4.3 billion in 2020, “a tempered 57.7 per cent growth” from the $2.7 billion spent in 2019.
Use cases
The APAC market is primarily driven by three use cases linked to the financial services industry:
- Cross-Border Payments & Settlements
- Trade Finance & Post Trade/Transaction Settlements
- Regulatory Compliance
Global blockchain spending will also see a moderate decline in the financial sector even as the industry is expected to invest over $1.6 billion this year. The need to improve payment methods and ensure regulatory compliance continues to be the most dominant reason for investments.
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Industries impacted negatively:
- Hospitality and tourism
- Transportation
- Personal and consumer services
- Manufacturing and Resources
- Retail and Professional services
Leading analyst firm Gartner reported IT spending for 2020 is set to decline by 8% even as investment in cloud gets a massive boost.
A recent survey by leading BPM player Appdynamics revealed digital transformation projects which took over a year to be approved in the pre-pandemic days were approved within a week amid the pandemic.
While overall IT spending is set to decline by 6% in Australia and 8% globally, enterprises continue to invest in technologies which could help businesses in the new world. Distributed Ledger Technology continues to be one of those in demand.
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