Investments in blockchain are ultimately expected to slow in 2020, before picking up again, according to IDC.
The Covid-19 crisis is also impacting the blockchain market in Europe.
Forgotten about double-digit growth, the firm IDC Spending on blockchain solutions, or decentralized transaction management technology, is now expected to decline by around 8% in 2020 in the region.
The trend is part of the overall contraction in IT spending. IT and related professional services would be the most impacted technological segments in 2020 (-16%), followed by software (-12%), including blockchain platforms.
“With declining customer demand, the disruption of supply chains and the spread of remote working, many companies are putting on hold innovative projects, including in blockchain,” said Carla La Croce, co-head of European Blockchain Practice at IDC. But the pullback is not expected to last.
“Blockchain investments are expected to experience a temporary slowdown in 2020 and recover soon after the pandemic,” the analyst added.
In addition, blockchain providers may seize other opportunities, especially in the supply chain for healthcare, tracking and tracking. The sector has an extensive ecosystem for this.
“The biggest players in the market collaborate with a variety of small innovative companies. The blockchain landscape in Europe remains vast with suppliers supplying virtually all major industries, ”the firm said.
(photo credit © Shutterstock)