As one of the most important innovations to come out of the cryptocurrency boom, blockchain technology completely changed the way companies across various industries operate, manage their assets, and make transactions.
According to data gathered by Investors King, global spending on blockchain solutions is expected to soar by 188% and hit $19bn by 2024.
Cross-Border Payments and Lot Lineage Account for 27% of Blockchain Technology Market
By allowing digital information to be distributed but not copied, blockchain technology created the groundwork for a new type of internet. Although initially invented for the cryptocurrency Bitcoin, by improving online security and streamlining fundraising and payment options, blockchain technology was adopted by many companies across different industries.
Between 2017 and 2019, the global spending on blockchain solutions jumped from $950 million to $2.7bn, revealed the IDC`s Worldwide Semiannual Blockchain Spending Guide.
Like all technology investments, spending on blockchain projects has also been affected by the COVID-19. Nevertheless, global spending on blockchain solutions still surged by 66% year-over-year and hit $4.5bn in 2020. Statistics show this figure is expected to increase by $2.1bn in 2021 and then jump by another $12.4bn in the next three years.
The IDC report also revealed that cross-border payments and settlements were the largest individual blockchain use case, accounting for nearly 16% of the global blockchain technology market in 2021. Lot lineage and provenance ranked as the second-largest use case with a 10.7% market share this year. Trade finance and transaction settlements and asset and goods management follow with a 10% and 8.8% share, respectively.
The Number of B2B Cross-Border Transactions to Soar by 345% and Hit 1.2B by 2024
The 2021 Juniper Research revealed the number of B2B cross-border transactions finalized on the blockchain is expected to increase dramatically in the following years. Last year, there were 122 million B2B cross-border transactions worldwide. This figure is set to double and hit 280 million in 2021. By 2024, the number of transactions is forecast to soar by 345% to over 1.2 billion by 2024.
Statistics show that the Asian market accounts for 109 million or nearly 40% of total transactions in 2021. By 2025, the number of B2B cross-border transactions on the blockchain in the region is expected to grow seven times and hit 745 million.
Europe ranked as the second-leading region with 81.3 million transactions in 2021. This figure is forecast to rise to 466 million by 2025. As the third-leading region, North America is expected to witness almost a 550% growth in the next four years, with the number of B2B cross-border blockchain transactions surging from 39.2 million to 254.3 million.
