ChannelLife New Zealand logo
Industry insider news for New Zealand's technology resellers
Story image

Spend on blockchain solutions to reach $6.6 billion

By Shannon Williams
Thu 22 Apr 2021
FYI, this story is more than a year old

Spending on blockchain solutions are set to reach almost $6.6 billion this year, according to new forecasts from IDC. 

The spend is an increase of more than 50% compared to last year, with blockchain spending to continue to see strong growth throughout the 2020-2024 forecast period with a five-year compound annual growth rate of 48.0%.

"This is an important time in the blockchain market as enterprises across markets and industries continue to increase their investment in the technology," says James Wester, research director, Worldwide Blockchain Strategies at IDC.

"The pandemic highlighted the need for more resilient, more transparent supply chains, healthcare delivery, financial services, and so much more, and enterprises around the world have been investing in blockchain to provide that resiliency and transparency," he says.

"What is also very important right now is that we are seeing real interest and investment by corporations, financial institutions, and even governments in areas they previously viewed with some uncertainty such as cryptocurrencies, digital assets, central bank digital currencies, decentralised finance, and stablecoins," Wester says.

"This investment will have major implications in a very short time on everything from retail to financial services to capital markets."

The leading use case for blockchain in 2021 and throughout the forecast is Cross-Border Payments & Settlements, which uses distributed ledger technology to track, trace, and manage payments and settlements. The second largest blockchain use case is Lot Lineage/Provenance, which is used to verify the origin and authenticity of a product as it moves throughout the value chain. Other leading use cases include Trade Finance & Post Trade/Transaction Settlements, Asset/Goods Management, and Identity Management.

From an industry perspective, banking leads the way in blockchain spending, accounting for nearly 30% of the worldwide total in 2021. Banking will remain the top industry for blockchain spending throughout the forecast although its share of spending will diminish slightly by 2024. The primary use cases for blockchain within the banking industry are Cross-Border Payments & Settlements and Trade Finance & Post Trade/Transaction Settlements.

The next largest industries for blockchain spending are process manufacturing and discrete manufacturing, which together account for more than 20% of all spending worldwide. The leading use case in both industries is Lot Lineage/Provenance. Following the manufacturing industries are professional services, retail, and insurance, which rely on blockchain to trace the movement of payments and products. The industries that will see the fastest growth in blockchain spending over the forecast period are professional services (56.0% CAGR), state/local government (53.3% CAGR), and healthcare (52.7% CAGR).

"While the effects of the pandemic had organisations diverting budget or pausing projects to focus on more essential endeavours, this was not the case with blockchain," says Stacey Soohoo, research manager, Customer Insights & Analysis at IDC.

"Along with the on-going pressures of digital transformation, COVID-19 made it clearer than ever that in order to have resilient business operations, changes in behaviour, demand, and supply have forced companies to adopt a digital-led and blockchain-driven business model to survive lockdowns, supply disruptions, and future crises," Soohoo says.

"Within the current environment, the use of blockchain is coming up especially within banking, manufacturing, professional services, and retail. 

"Specifically, focus has been in tracking items from manufacturer to distribution to the end consumer and related payments and settlements that come with goods movements and management," she says.

"The market is now reaching a point where successful pilots and deployments have proven the need, but other key factors such as a willingness to collaborate are needed to instil blockchain technology across the entire value chain, with every single participant needing and wanting to be a part of the network."

From a technology perspective, IT services and business services (combined) will account for more than two thirds of all blockchain spending throughout the forecast with IT services receiving slightly more investment over the forecast period. Blockchain platform software will be the largest category of spending outside of the services segment and the fastest growing technology category overall with a five-year CAGR of 52.9%.

Spending on blockchain solutions in the United States will be nearly $2.6 billion this year, making it the largest geographic market, followed by Western Europe ($1.6 billion) and China ($777 million). All nine regions covered in the Spending Guide will see exceptional spending growth over the forecast period led by China with five-year CAGR of 54.6% and Central and Eastern Europe (50.0% CAGR).

Related stories
Top stories
Story image
Review
Hands-on review: JBL Flip 6 portable speaker
Once you switch it on, and listen away for up to 12 hours, you will quickly realise that this is a little speaker looking for a party.
Story image
Tech job moves
Tech job moves - Fastly, INX, Kinly, SmartBear & Vectra AI
We round up all job appointments from July 29 - August 12, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
InternetNZ
How well do rangatahi understand cyber safety in Aotearoa?
Do rangatahi in Aotearoa understand the importance of being safe online, or has lifelong exposure to the internet resulted in widespread complacency?
Story image
Data Protection
Zero Trust, but verify - finding the OT in ZerO Trust
The move to remote and cloud-based technologies has shifted the goalposts for cybersecurity. It now needs to cover multiple people, devices, platforms, and networks.
Story image
Smartphone
Samsung introduces new generation of foldable smartphones
Samsung has unveiled its new range of Galaxy Z smartphones, bringing new developments to the company’s foldable smartphone portfolio.
Story image
Dicker Data
Dicker Data brought on as Acronis partner for A/NZ
The news about the partnership comes in as cyber criminals continue to exploit gaps in traditional solutions and strategies in NZ and across the APAC region.
Story image
Red Hat
Red Hat announces 2022 awards winners for A/NZ region
Red Hat recently acknowledged Australia and New Zealand partners with its annual awards, highlighting partners across various categories.
Story image
Financial results
Jade Software’s plan to get back to surplus in 2022
Jade Software has released its latest financial report, revealing that the company has kept its loss low from $567,000 in FY 2020 to just $153,000 in FY 2021.
Story image
Arlo
Hands-on review: Arlo Go 2 security camera
In my humble opinion, Arlo Go 2 offers security for anyone needing to keep a remote eye on prized possessions or premises at different locations.
Story image
Neat
Workplace design a crucial factor for better employee experience - report
The key to a successful workplace could be its design, according to research from Ecosystm and Neat.
Story image
Dark web
Beware the darkverse and its cyber-physical threats
A darkverse of criminality hidden from law enforcement could quickly evolve to fuel a new industry of metaverse-related cybercrime.
Story image
SaaS
Claroty launches new cloud-based industrial cybersecurity platform
The company says Claroty xDome is the industry's first solution to deliver the ease and scalability of SaaS without compromising on visibility, protection, and monitoring controls.
Story image
Gaming
Attacks on gaming companies more than double over past year
The State of the Internet report shows gaming companies and gamer accounts are at risk, following a surge in web application attacks post pandemic.
Story image
New Zealand
2degrees announces appointments to newly established board
2degrees has announced Liz Coutts as the board chair, while Russell Stanners and Kathy Meads join her as directors.
Story image
Microsoft
Spectralink DECT devices now integrated with Microsoft Teams SIP Gateway
Spectralink DECT devices are now integrated with Microsoft Teams SIP Gateway to help create better results for business-critical frontline workers.
Story image
IDC
High level of Customer Identity & Access Management adoption
The study from Okta revealed that the pandemic has either accelerated or highlighted the need for digital-first strategies.
Story image
Machine learning
Sysdig releases CDR offering to combat cryptojacking
Sysdig has unveiled a cloud detection and response (CDR) offering powered by machine learning to combat cryptojacking.
Story image
Hybrid Cloud
The essential guide to digital transformation by SolarWinds
Digital transformation is a buzzword thrown around all the time by companies, but what does it actually mean and why is it important? SolarWinds breaks it down.
Story image
Artificial Intelligence
Exclusive: NZ-based DEFEND offers global cyber protection
DEFEND supports customers in 66 countries across the globe with a relentless focus on ensuring that every dollar spent on security provides a meaningful return on investment and reduces cyber risk.
Story image
Charity
SnapLogic teams up with meetmagic for charity and children
SnapLogic has announced its partnership with meetmagic, an online Australian platform that combines business and philanthropy.
Story image
Surveillance
Ministry will no longer accept equipment from Chinese firm Hikvision
The Ministry of Business, Innovation and Employment (MBIE) says it will no longer accept equipment from a major Chinese surveillance camera maker.
Story image
Google Cloud
Google Cloud to open first cloud region in NZ - among others
Google Cloud has announced plans to bring three new cloud regions, one each in New Zealand, Malaysia and Thailand.
Story image
Home Entertainment
Hands-on review: TCL 65″ C835 Mini LED 4K Google TV
We introduce you today to a TV that brings the height of immersion to your viewing experience: The TCL 65″ C835 Mini LED 4K Google TV.
Story image
Economics
9 in 10 retailers prepared for economic challenges this year
Some 9 in 10 retailers (86%) are prepared for continued inflation, higher interest rates and potentially lower consumer spending, according to new research.
Story image
Document Management
TrustRadius gives M-Files two document management awards
TrustRadius has recognised M-Files with both a 2022 Best Feature Set and a 2022 Best Relationship award in document management.
Story image
SaaS
Cloud and data protection big challenges for NZ businesses
"This surge towards a cloud-first approach meant security and safety became afterthoughts - there's no point being the fastest car on the racetrack if you crash.”
Story image
Ingram Micro
Ingram Micro NZ sees $74 million revenue growth in 2021
Ingram Micro New Zealand's latest financial report reveals that its revenue from contracts with customers increased by almost $74 million in 2021.
Story image
Tech job moves
Tech job moves - Cohesity, Equinix, IDC, Proofpoint & Xero
We round up all job appointments from July 29 - August 5, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
ExtraHop
Organisations exposing highly sensitive protocols to public internet
More than 60% of organisations expose remote control protocol SSH to the public internet, while 36% of organisations expose the insecure FTP protocol.
Story image
Compliance
Why security needs to shape your journey to the cloud
It's estimated that 80% of workloads could be in the cloud in the next few years. How can you make all that data secure?
Story image
Developers
Snyk announces plans to expand partner network in APJ
Recognising that partnerships are critical for growth, Snyk is building an entire partner ecosystem that will drive its expansion across APJ.
Story image
Web application firewall
Radware recognised in KuppingerCole’s 2022 Leadership Compass report
Radware has been named a Product, Innovation, Market and Overall Leader in the 2022 KuppingerCole Leadership Compass report for Web Application Firewalls.
Story image
Application Performance Monitoring / APM
New Relic integrates offering with Atlassian’s Jira Software
New Relic has integrated errors inbox with Jira Software to allow developers to easily access and set up complete stack error tracking and software performance monitoring from within the tool.
Story image
Home security
Hands-on review: Eufy Wire-Free Dual Cam Video Doorbell 2K
We have had our house secured by Eufy products for over seven months now. We love the brand, and it has never let us down.
Story image
Sustainability
NZ program recovers and recycles more than 177 tonnes of e-waste
The TechCollect NZ pilot program says its milestone of recovering and recycling more than 177 tonnes of ICT e-waste recognises the efforts of many.
Story image
Privileged Access Management / PAM
The importance of stopping identity sprawl for cybersecurity
The 2021 Data Breach Investigations Report (DBIR) shows that 61% of all breaches involve malicious actors gaining unauthorised, privileged access to data by using a compromised credential. Unfortunately, it is often too late when the misuse of a credential is detected.
Story image
Samsung
New range of Samsung Smart Watches announced with health focus
Samsung has announced new additions to its SmartWatch portfolio, with the Galaxy Watch5 and Galaxy Watch5 Pro to be released in late August.
Story image
Distribution
Garmin expands NZ footprint with new Auckland distribution centre
The facility at Goodman’s Highbrook Business Park will be fully operational from October 2022 and features 3,586sqm of warehouse space.
Story image
Gigabit
Keysight Technologies and Nokia’s public test of 800GE success
Keysight and Nokia have successfully demonstrated the first public 800GE test, validating the readiness of next-generation optics for service providers and network operators.
Story image
LG Electronics
LG Electronics’ revenue in NZ grows by 57% in FY 2021
The New Zealand branch of LG Electronics Australia's total revenue shot up by nearly NZD $45 million reaching a total of $123.7 million for FY 2021.
Story image
CyberCX
Nozomi Networks adds nine partners to its MSSP program
OT and IoT security company Nozomi Networks has added nine new members to its MSSP Partner Program, and the list includes CyberCX and Deloitte.