Blockchain industry growing globally

Gartner report: Blockchain industry growing globally

This year’s blockchain report from market research firm Gartner finds that the number of solution-oriented blockchain projects going into production is increasing. Yet the study notes geographic and industry differences.

The study by market research firm Gartner, published in November, concludes that interest in Blockchain use cases remains high. The 53 vendors surveyed were able to put 14 per cent of their more than 1,000 blockchain projects into production already. The banking and securities sectors continue to Bitcoin Era rely on blockchain technology the most. 36 percent of the projects took place in the financial sector. This is an increase of 6 percent compared to the previous year, although the overwhelming share of 75 percent from the ICO year 2017 was not reached. On the other hand, 63 percent of blockchain initiatives made it past the proof-of-concept (PoC) phase. Compared to the 32 per cent from 2019, that’s an increase of 31 per cent.

The biggest surprise is the wholesale sector. While the share of blockchain initiatives in 2019 was still just under 1 per cent, 7 per cent now rely on blockchain technologies. Yet much of the wholesale growth in 2020 came from use cases in trade finance, where automating the process could create significant efficiencies for all parties.

The media, communications and services sector suffered the biggest decline. As Gartner noted, fewer use cases and investments were reported this year, reversing the growth of the last two years. The study sees a shift in processes from the PoC phase to the production phase as the reason, similar to the financial sector. According to the study, 19.5 per cent of projects took the next step this year.

The education sector invested the least in blockchain initiatives. Most blockchain-related work in this sector fell into the area of identity management, such as education services.

Most blockchain applications in Europe, Asia and North America

Based on the survey analysed, a clear triumvirate has emerged in the geographical distribution of blockchain projects, encompassing the European, Asia-Pacific (APAC) and North American regions. Europe takes first place with 307 application examples, which accounts for 30 percent of all blockchain ventures. This is followed by the APAC sector with 290 initiatives (28 per cent) and North America with 260 (25 per cent) blockchain initiatives. Thus, 83 per cent of all crypto projects are located in these three economic areas.

According to the study, the UK leads Europe in terms of the number of blockchain use cases. In Germany, France, Italy, Switzerland, the Netherlands and other countries, there are also many initiatives in various stages of development. The results are roughly in line with those of the recently published EU Blockchain Report. There, Great Britain was also attested a relatively advanced development in the blockchain sector.

In North America, the USA holds the lion’s share of DLT projects. 236 of the 260 initiatives are taking place on US soil. The developments in South America are also interesting. There, the market research firm noted an increased activity of blockchain ventures from 10 projects in 2019 to 62 this year.

Asia-Pacific has the second largest share of all crypto initiatives, with 290. According to the Gartner study, this sector of the economy in particular is seeing a faster transition into the production phase.