what is blockchain? · that can be used to drive new business and e˚ciencies more securely and...
TRANSCRIPT
Craig Wentworth Research Director
Carla La CroceSenior Research Analyst
Mohamed Hefny Program Manager
Despite a slow start, Europe is now among the fastest growing regions worldwide for blockchain spending, thanks to factors including enterprises moving blockchain proof-of-concept projects into production and the wave of local startups driving marketing and sales activities.
2018 2019 2020 2021 2022
122%
104%
81%
64%
51%
106%
89%
76% 61%
52%
Worldwide YoY Growth Europe YoY Growth
Europe will spend nearly $1.5B
on blockchain technologies in
2020, rising to $3.6B in 2022Blockchain Spending
in Europe 2020
Total Spending: $1.48B
Western Europe81% 19%
Central& Eastern
Europe
Blockchain Spending
Share by Industry, 2020
31.7% Banking
10.2% Discrete Manufacturing
7.7% Process Manufacturing
6.5% Retail
6% Professional Services
5.7% Utilities
Note: Other industries account for the remaining 32.2%.
Source: IDC Worldwide Semiannual Blockchain Spending Guide, 2018H1
What isBlockchain?IDC defines blockchain as a data store that represents a digital ledger of records (blocks) that are cryptographically linked (chained).
The result is an immutable and sequential set of records that can be used to drive new business and e�ciencies more securely and transparently.
Blockchain and distributed ledger technologies have a global nature, as their main objective is to facilitate theexchange of digital and physical assets among di�erent parties across all markets, decentralizing authority and distributing power and trust.
Top Use Cases in Top Industries
Trade Finance and Post Trade/Transaction Settlements
No. 1
Cross-Border Payments andSettlements
No. 2Banking
Lot Lineage/ProvenanceNo. 1
Asset/Goods ManagementNo. 2Manufacturing
Lot Lineage/ProvenanceNo. 1
Asset/Goods ManagementNo. 2Retail
Property Ownership Management
No. 1
OthersNo. 2
ProfessionalServices
Energy SettlementsNo. 1
OthersNo. 2Utilities
Source: IDC Worldwide Semiannual Blockchain Spending Guide, 2018H1
Companies Are Increasing Their
Knowledge and Usage of Blockchain
Blockchain awareness has increased compared with the previous year (and it’s a pattern seen in both the Western and Central & Eastern European subregions). Across Europe, the share of companies that claim to have never heard of blockchain decreased from nearly 60% in 2017 to less than 40% in 2018.
No
Yes, but i don't understand itYes, identifying use cases
Yes,developing pilots
Yes, moved one pilot into production
Yes, runningmultiple environments
in production
Yes, but don't plan to use it
Have you heard of Blockchain?Pan-Europe 2018
Use Cases Increase in
Utilities and Supply Chain-Related Industries
Never Heardof
Blockchain
No Understandingof Blockchain
No Plan to Use Blockchain
Engaged in Blockchain
Activity*
FINANCE
Never Heardof
Blockchain
No Understandingof Blockchain
Engaged in Blockchain
Activity*
No Plan to Use Blockchain
UTILITIES / OIL & GAS
Never Heardof
Blockchain
No Understandingof Blockchain
No Plan to Use Blockchain
Engaged in Blockchain
Activity*
TRANSPORT /ACCOMMODATION
Never Heardof
Blockchain
No Understandingof Blockchain
No Plan to Use Blockchain
Engaged in Blockchain
Activity*
TELECOM / MEDIA
Never Heardof
Blockchain
No Understandingof Blockchain
No Plan to Use Blockchain
Engaged in Blockchain
Activity*
MANUFACTURING
Never Heardof
Blockchain
No Understandingof Blockchain
No Plan to Use Blockchain
Engaged in Blockchain
Activity*
OTHERINDUSTRIES
*identifying use cases, developing pilots, moved one pilot into production, running multiple environments in production
Source: IDC European Vertical Markets Survey 2018-2019, n =2,759
Opportunities
Blockchain is now well established in financial services (whether as a PoC or a real, production deployment), with banking as a leading industry. Uses are many and varied, from trade finance and post trade/transaction settlements, to cross-border payments and settlements, as well as regulatory compliance.
Fintechs' experimentation and innovation with blockchain has revealedinteresting and successful uses of blockchain in other industries too. In discrete and process manufacturing, for example, the use of blockchain to track asset provenance is paving the way for uses in other supply chain-related industries, from retail and wholesale to transportation.
Other industries, such as professional services and utilities, are alsoincreasing their adoption of blockchain, including the use of blockchain "smart contracts" for property ownership management.
Resources:- IDC Worldwide Semiannual Blockchain Spending Guide, 2018H1
- IDC European Vertical Markets Survey 2018-2019, n =2,759
For further information, contact:
IDC EMEA
@IDC EMEA
idcuki.com