IDC recently released its new blockchain spending estimate, predicting that spending will hit $6.6 billion in 2021, up 50% from last year. It indicates a five-year compound growth rate of 48 per cent per year.

This implies that by 2024, blockchain investment will be worth nearly $19 billion.

“The blockchain industry is at a critical juncture, as businesses across markets and sectors continue to expand their investment in the technology. The pandemic highlighted the need for more robust, open supply chains, healthcare delivery, financial services, and so much more. And businesses all over the world have been investing in blockchain to provide the resiliency and transparency,” according to James Wester of IDC.

“What’s also relevant right now is that we’re seeing real interest and investment from businesses, financial institutions, and even governments in areas like cryptocurrencies, digital assets, central bank digital currencies, decentralized finance, and stablecoins, which they previously regarded with some scepticism. This investment would have huge ramifications on everything from retail to financial services to capital markets in a brief period.”

The most common use cases are similar to last year, with cross-border payments and settlements taking the lead, followed by lot lineage and provenance, and trade finance and post-trade in third place.

Trade finance has slipped from second to third place in terms of percentage. Given the pandemic, it’s unsurprising that there’s a higher percentage of money spent on lot lineage.

Banking is the largest industry sector, accounting for 30% of spend, and is expected to remain the main sector over the next four years, though its share will decrease slightly.

Process and discrete manufacturing are tied for second place with 20% of the vote. Professional services, government, and healthcare are expected to expand the most.

In terms of geography, the United States leads in spending with $2.6 billion.

This accounts for nearly 40% of total spending this year, led by Western Europe ($1.6 billion) and China ($777 million).