Blockchain spending in Europe will recover post-Covid-19
The analyst firm’s latest forecast, based on its European IT Buyer Sentiment Survey and global blockchain spending guide, shows spending on blockchain solutions will be down around 8% in 2020. This counters previous analysis which saw blockchain spending at $1.4 billion this year, running at a 58% CAGR through to 2023.
Business and IT services will see the largest decline, down 16%, followed by software (12%), as a result of a downturn in blockchain platforms. Hardware, with an 8% decrease, will be less badly hit, but external storage will drop 17%.
Yet IDC – much like the World Economic Forum – says certain use cases will see a lift, particularly in the supply chain. Other areas include voting, which the analyst argues has the technological capability for change, but remains too reliant on a sceptical public. Various stories have shown how current systems are less than robust – the UK chancellor, Rishi Sunak, made the headlines this week for mistakenly casting the wrong vote through a digital process – but IDC adds that the current situation will ‘perhaps give new impetus to e-voting initiatives across Europe.’
Overall, industry optimists should expect the current struggling figures to be a blip. “Given the benefits that blockchain can have in terms of reliability of the supply chain, transparency and tracking the path of goodsl, blockchain investments are expected to see only a temporary slowdown in 2020 and recover soon after the pandemic eases,” said Carla La Croce, IDC European blockchain practice co-lead.
IDC added that the European blockchain model was ‘vast’, with vendors catering to ‘practically all’ major industries.