Earlier this week, research firm International Data Corporation (IDC) said that the rate of growth in enterprise blockchain spending in Europe would be impacted by COVID-19. While it is widely known that growth is stunted in many industries, IDC sees blockchain as beneficial in helping the world economy to recover.
Previously, IDC forecast that European blockchain spending would be $1.45 billion in 2020, with growth of 58% CAGR to 2023. The ongoing pandemic has impacted business operations and innovation, and IDC has cut its 2020 forecast by 8% for the European market. However, at $1.33 billion, the figure still represents more than 60% year-on-year growth.
IDC had previously predicted worldwide spending on blockchain to hit $16 billion by 2023.
“The pandemic and the subsequent lockdown have had a negative impact on many industries, and we expect a significant slowdown in technology spending due to a pause in investments across companies and prioritization of urgent expenses,” said Carla La Croce, IDC European Blockchain Practice Co-Lead.
Although blockchain innovation would be slowed due to fewer exploratory projects, IDC says it could help mitigate COVID-19 effects on supply chains. “Blockchain provides transparency and breaks down data silos while guaranteeing strong security and a single source of truth,” said Radoslav Dragov, IDC European Blockchain Practice co-Lead. Ledger Insights has reported on the International Chamber of Commerce’s recent call for supply chain digitization as well as supply chain finance initiatives that can help with recovery.
“Given the benefits that blockchain can have in terms of reliability of the supply chain, transparency, and tracking the path of goods, blockchain investments are expected to see only a temporary slowdown in 2020 and recover soon after the pandemic eases,” added La Croce.
Other COVID-19 related use cases mentioned by IDC include contact tracing solutions, disaster relief, and insurance. Additionally, IDC sees the potential for blockchain in the voting process.
