Blockchain Adoption

The blockchain market is showing signs of promise. The size of the global blockchain market
posted double-digit growth in 2020, which is expected to increase in the next decade. This had led
companies like Bitcoin and Square to lead the way in blockchain revenue, as well as for IBM and
Ant Financial to file many active blockchain patents. By far, the biggest contributor to blockchain
spending is the United States, followed by Western Europe. In terms of industry, the banking sector
had the biggest spend on blockchain technologies.
 In 2020, the industry with the largest blockchain spend was banking at 29.7%. Other big
spenders on blockchain technology are process manufacturing (11.4%), discrete
manufacturing (10.9%), professional services (6.6%), and retail (6%).
 The professional services industry is expected to have the fastest growth in blockchain
spending, at a CAGR of 54%. This is followed by healthcare (43.9%) and state and local
government (48.2%).
 The US is projected to spend $4.2 billion in 2022, which will make it the largest regional
spender on blockchain solution. The next biggest regional spenders are Western Europe
($2.9 billion), the People’s Republic of China ($1.4 billion), Asia Pacific and Japan, ($0.75
billion), Middle East and Africa ($0.5 billion), and others ($1.9 billion).
 Blockchain spend from the automotive industry will increase from $849.5 million in 2019
to$14.731 billion by 2025.
 Data on Blockchain Technology
Applications
Though the blockchain market is growing, there seem to be conflicting views within organizations
about blockchain adoption. On the one hand, the majority of senior executives think blockchain is
set for broad-scale adoption yet only around 40% say that they have adopted it within their
organization. A blockchain technology report shows that blockchain adoption is strongest in China.
In contrast, 50% of IT leaders said that they were not interested in adopting blockchain solutions.
When it comes to cryptocurrency, a technology enabled by blockchain, data shows that the US has
the most number of cryptocurrency ATMs as well as blockchain wallet users. Ukraine and Russia
were the top countries for cryptocurrency transactions based on transaction volume and value.

Overall Adoption of Blockchain Technology

 88% of senior executives think that blockchain technology will eventually achieve
mainstream adoption.
 In a survey, 39% of senior executives from around the world said that they have adopted
blockchain technologies in their organizations. 41% of these companies had a revenue of
more than $100 million. Meanwhile, 46% had a revenue of more than $1 billion.
 Adoption of blockchain as a top strategic priority is strongest in China, where 70% agreed
that blockchain is in their top five list of priorities. On the other hand, only 42% of
organizations in Germany see it as a priority.
 The top use cases for blockchain for organizations worldwide are digital currency (33%),
data access and sharing (32%), and data reconciliation (31%). Other popular use cases
include identity protection (31%), payments (30%), and tracking and tracing (27%).
 Meanwhile, another study revealed that 36% of IT leaders are actively searching for
blockchain security solutions. However, 50% of IT leaders were not interested in adopting
blockchain security solutions.
 40% of organizations said that they planned to invest $5 million or more in blockchain in the
coming year.
 China is the country that will benefit the most from adopting blockchain technologies. China
is estimated to reap $440.4 billion or a boost of 1.7% on their GDP in 2030. This is followed
by the US, which expects a boost of $407.2 billion, Germany at $95.3 billion, and the UK at
$72.2 billion.
 In addition, experts predict that within a decade, 10% to 15% of the worldwide
infrastructure will use blockchain technology.
 Lastly, blockchain can enhance 40 million jobs around the world by 2030.
 Use cases of blockchain
Banking & Financial institutions apparently dominate blockchain development, as data suggests
that around 50-90% of American and European banks are exploring blockchain and the financial
services industry alone spends around $1-2 billion on blockchain on an annual basis.
According to Deloitte’s 2018 global blockchain survey, 53% of enterprises are likely to list use
cases on supply chain, 51% on Internet of Things (IoT), 50% on digital identities, 44% on digital
records and 40% on digital currencies.
Some areas where use cases in blockchain are being discussed at greater lengths today:

Pharma industry
 Securing patient health records or any medical documentation
 Clinical trial test date records for secure distribution
 Anti-counterfeit measures taken to check spurious drugs and medicines

Banking
 International remittance involving cross border currency transfers
 Know Your Customer (KYC) involving customer databases and records
 Mortgage contract and counterparty risk tracking and management
Retail & CPG
 Loyalty program using token mechanism for reward allocation and redemption
 Automobile registry and ownership transfers

Logistics & SCM

 Vehicle analytics to track the movement of vehicles that fulfil the promise of last mile
delivery to users and driver analytics to login their duty records.
 Source to Pay: managing vendor onboarding, vendor contracts, service agreements and
many other aspects of end to end supply chain process
 Order to cash: This is a subset in the supply chain process for tracking goods movement and
financial settlement for order closure

Across industries
 Digital signatures: Allowing authenticity on transfer of documents Interparty payment and
intellectual property rights and settlements across industries
 Asset warranty record keeping and service records management