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A new report released by the International Data Corporation (IDC) states that spending on blockchain solutions in Europe will decline due to COVID-19.

IDC has predicted that spending on blockchain solutions across all sectors within the block would grow by 28% between 2020 and 2023. Spending was anticipated to hit $1.4 billion in 2020.

There will be a slight slowdown in blockchain solutions, with spending down around 8% in 2020 on previous expectations, according to IDC.

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Carla La Croce, IDC European blockchain co-practice, said: “The pandemic and the subsequent lockdown have had a negative impact on many industries, and we expect a significant slowdown in technology spending due to a pause in investments across companies and prioritisation of urgent expenses.

“With depressed customer demand, disrupted supply chains, and widespread remote working, many companies are putting on hold innovative projects, including in blockchain, until there is more clarity about the future.”

Business and IT services will be the most impacted technology segments in 2020 (down 16%), followed by software (down 12%), with blockchain platforms driving the slowdown. If hardware is expected to have the lowest decrease in 2020 (down 8%), external storage will see the biggest fall (down 17%). By industry, IDC has revised down spending for all vertical markets, with a more severe slowdown for personal and consumer services, manufacturing, resource industriesutilities, telecoms, and the whole financial sector. Overall CAGR for 19–23 is expected to be down by more than 3 percentage points compared with pre-COVID-19 forecasts.

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Radoslav Dragov, IDC European blockchain practice co-lead, adds: “While the COVID-19 pandemic presents challenges to the blockchain industry, it can also unlock new opportunities by highlighting current problems across many industries.

“Blockchain provides transparency and breaks down data silos while guaranteeing strong security and a single source of truth.”

The report analyses blockchain adoption within nine regions, 32 countries, 19 industries, 27 use cases, and 6 technologies.

For more information about the report, click here.