Research And Market have added to their offerings the report detailing the global blockchain technology market for the period of 2021 to 2027.
The projections shared by the report state that the global blockchain market is expected to reach $ 30.7 billion by the year 2027, trailing a post-covid compound annual growth rate (CAGR) of 43%.
Research and Markets is an online platform that provides market and research data from publishers, consultants, and analysts. The global analysis and forecast periods covered within the report are 2020-2027 (current & future analysis) and 2012-2019 (historical review). Research estimates are provided for 2020, while research projections cover the period 2021-2027.
IT Budgets Take A Hit Globally
The report states that the pandemic has severely affected businesses globally. With the second and third waves plaguing countries, large-scale human and financial destruction enables a pessimistic business operation.
Business confidence is a well-known leading indicator of future output. Since there is a continued decline in business confidence, there are high chances the economy will worsen gradually.
Business confidence is also an indicator of investment growth, and as companies revisit their budget plans, IT budgets are taking the hit. Even though the pandemic has set off a digital transformation, the IT sector faces sharp downward revisions.
WFH A Factor In Global IT Budget Slash
Emerging technologies like AI, IoT, automation, big data, and blockchain will benefit in the post-pandemic period; these areas are still covered under the non-essential brackets as companies struggle to survive the current scenario.
The pandemic has left companies facing financial challenges due to disrupted supply chains, business opportunities, and low consumer demand for goods and services. The funds for planned IT projects take a hit as companies are unable to meet quarterly revenue targets.
Automation, cloud computing, and remote working technologies are under high priority as pressure to support Work From Home (WFH) remain high and remote operation is imminent to ensure business continuity. All other IT spending is being cut down.
Blockchain Will Face Decline But Can Bounce Back Up
The report states that blockchain technology will witness a decline in terms of application in both industrial and non-industrial sectors. However, despite blockchain witnessing dwindling investments, the technology is likely to bounce back. The glitches faced currently are transitory.
Blockchain will witness the highest level of spending in the years to come owing to characteristics such as redundancy, decentralization, and transparency. These factors will push blockchain across varied domains that include healthcare and supply chains.
Blockchain will experience high interest and spending across various applications and industry verticals as it has the possibility of addressing concerns that taint traditional options and empower companies to gain an edge over their competitors.
Blockchain technology has already become an integral part of businesses and their consumers, products, and legal processes. Prescription management, medical data, online shopping are some areas that ensure a significant potential for the technology.
Blockchain Offers New Opportunities In A Post-Pandemic World
Blockchain can help companies control supply chains, achieve traceability of products, and maintain auditable records for goods and their movement. It also presents new opportunities in supply chain management, insurance record tracking, and medical data verification. Manufacturing and professional services companies in the post-pandemic era will also be able to use the technology, despite a certain degree of reluctance. The report states that the technology is estimated to receive an investment of $14.4 billion globally by 2023.
The fastest growth is estimated to be registered by the manufacturing & resources sector, a 60.5% in terms of blockchain spend. The distribution & services sector follows behind, having a forecast of a CAGR of around 58.7%. Despite risks, blockchain-based applications and deployments are reported to increase in the professional services, healthcare, manufacturing, and retail industries. These sectors are in need of a coordinated value chain.
Regional Estimation Of Blockchain Spend
Regionally, The United States will remain at the forefront of blockchain spend, while in other regions, it will increase notably over 2018-2023. Central, Eastern, and Western Europe might lead with a CAGR of more than 63%.
Asia-Pacific is estimated to contribute nearly 19.3% of the total spending on blockchain technology in 2020. The regional Market here will be fueled by increasing investments in the BFSI sector. The technology will receive immense traction from countries in Asia-Pacific that aim to improve existing payment techniques and maintain records associated with regulatory compliance.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.