Craig Wentworth Research Director

Carla La CroceSenior Research Analyst

Mohamed Hefny Program Manager

Despite a slow start, Europe is now among the fastest growing regions worldwide for blockchain spending, thanks to factors including enterprises moving blockchain proof-of-concept projects into production and the wave of local startups driving marketing and sales activities.

2018 2019 2020 2021 2022

122%

104%

81%

64%

51%

106%

89%

76% 61%

52%

Worldwide YoY Growth Europe YoY Growth

Europe will spend nearly $1.5B

on blockchain technologies in

2020, rising to $3.6B in 2022Blockchain Spending

in Europe 2020

Total Spending: $1.48B

Western Europe81% 19%

Central& Eastern

Europe

Blockchain Spending

Share by Industry, 2020

31.7% Banking

10.2% Discrete Manufacturing

7.7% Process Manufacturing

6.5% Retail

6% Professional Services

5.7% Utilities

Note: Other industries account for the remaining 32.2%.

Source: IDC Worldwide Semiannual Blockchain Spending Guide, 2018H1

What isBlockchain?IDC defines blockchain as a data store that represents a digital ledger of records (blocks) that are cryptographically linked (chained).

The result is an immutable and sequential set of records that can be used to drive new business and e�ciencies more securely and transparently.

Blockchain and distributed ledger technologies have a global nature, as their main objective is to facilitate theexchange of digital and physical assets among di�erent parties across all markets, decentralizing authority and distributing power and trust.

Top Use Cases in Top Industries

Trade Finance and Post Trade/Transaction Settlements

No. 1

Cross-Border Payments andSettlements

No. 2Banking

Lot Lineage/ProvenanceNo. 1

Asset/Goods ManagementNo. 2Manufacturing

Lot Lineage/ProvenanceNo. 1

Asset/Goods ManagementNo. 2Retail

Property Ownership Management

No. 1

OthersNo. 2

ProfessionalServices

Energy SettlementsNo. 1

OthersNo. 2Utilities

Source: IDC Worldwide Semiannual Blockchain Spending Guide, 2018H1

Companies Are Increasing Their

Knowledge and Usage of Blockchain

Blockchain awareness has increased compared with the previous year (and it’s a pattern seen in both the Western and Central & Eastern European subregions). Across Europe, the share of companies that claim to have never heard of blockchain decreased from nearly 60% in 2017 to less than 40% in 2018.

No

Yes, but i don't understand itYes, identifying use cases

Yes,developing pilots

Yes, moved one pilot into production

Yes, runningmultiple environments

in production

Yes, but don't plan to use it

Have you heard of Blockchain?Pan-Europe 2018

Use Cases Increase in

Utilities and Supply Chain-Related Industries

Never Heardof

Blockchain

No Understandingof Blockchain

No Plan to Use Blockchain

Engaged in Blockchain

Activity*

FINANCE

Never Heardof

Blockchain

No Understandingof Blockchain

Engaged in Blockchain

Activity*

No Plan to Use Blockchain

UTILITIES / OIL & GAS

Never Heardof

Blockchain

No Understandingof Blockchain

No Plan to Use Blockchain

Engaged in Blockchain

Activity*

TRANSPORT /ACCOMMODATION

Never Heardof

Blockchain

No Understandingof Blockchain

No Plan to Use Blockchain

Engaged in Blockchain

Activity*

TELECOM / MEDIA

Never Heardof

Blockchain

No Understandingof Blockchain

No Plan to Use Blockchain

Engaged in Blockchain

Activity*

MANUFACTURING

Never Heardof

Blockchain

No Understandingof Blockchain

No Plan to Use Blockchain

Engaged in Blockchain

Activity*

OTHERINDUSTRIES

*identifying use cases, developing pilots, moved one pilot into production, running multiple environments in production

Source: IDC European Vertical Markets Survey 2018-2019, n =2,759

Opportunities

Blockchain is now well established in financial services (whether as a PoC or a real, production deployment), with banking as a leading industry. Uses are many and varied, from trade finance and post trade/transaction settlements, to cross-border payments and settlements, as well as regulatory compliance.

Fintechs' experimentation and innovation with blockchain has revealedinteresting and successful uses of blockchain in other industries too. In discrete and process manufacturing, for example, the use of blockchain to track asset provenance is paving the way for uses in other supply chain-related industries, from retail and wholesale to transportation.

Other industries, such as professional services and utilities, are alsoincreasing their adoption of blockchain, including the use of blockchain "smart contracts" for property ownership management.

Resources:- IDC Worldwide Semiannual Blockchain Spending Guide, 2018H1

- IDC European Vertical Markets Survey 2018-2019, n =2,759

For further information, contact:

IDC EMEA

@IDC EMEA

idcuki.com