Bitcoin has proven relatively popular in 2019, but investment in the blockchain technology that underpins it hasn’t exactly slowed — in fact, the latest forecast predicts an increase of 80 percent over last year’s spending.

In total, the International Data Corporation (IDC) estimates worldwide “blockchain spending” in 2019 will reach a head-scratching $2.7 billion.

The IDC also expects the compound annual growth rate (CAGR) in blockchain investment between 2018 and 2023 to reach 60.2 percent.

“Spending on blockchain solutions in the United States will be nearly $1.1 billion in 2019, making it the largest geographic market, followed by Western Europe ($661 million) and China ($304 million),” said the IDC in its new blockchain spending update, published August 7.

“All nine regions covered in the spending guide will see phenomenal spending growth over the 2018-2023 forecast period led by Canada with five-year CAGR of 73.3 percent,” it added.

Banks are set to drive investment in blockchain tech

Somewhat curiously, the banking industry is expected to lead the charge in DLT investment. It accounts for around 30 percent of projected blockchain spending until at least 2023.

Courtesy of IDC

“The banking industry will also drive spending on two of the largest blockchain use cases – cross border payments & settlements and trade finance & post-trade/transaction settlements,” reports the IDC.

Manufacturing industries are keen on DLT, too

“Discrete” and “process” manufacturing are thought to be the next largest industries to spend money developing blockchain tech. These sectors represent more than 20 percent of overall projected worldwide spending.

Other fast-growing industries include professional services, retail, and utilities, which all should grow faster than the overall “blockchain” market, analysts said.

“Behind the sometimes heated public discussions and debates over blockchain, enterprise adoption of the technology has quietly reached a tipping point across multiple use cases,” said IDC research director James Wester.

“Companies are recognizing value from initial pilot programs and moving those projects into production,” he added. “[…] There is certainly some uncertainty still regarding the technology, specifically in the areas of governance and regulation, but adoption of blockchain for financial services, identity, trade, and other markets is encouraging.”

You can read more about how the IDC makes these kinds of predictions here.