Blockchain investment is on the rise, with early adopters doubling down on their investments, according to a new report by Capgemini Research Institute.
According to the report, blockchain investment is set to grow significantly in the near term, with an anticipated growth of 30% in the next three years.
60% of investors also see blockchain as transformative to their collaboration approaches.
In the UK, the consumer products industry is leading the way in blockchain investment, with 43% of projects. This is followed by manufacturing, at 30%, and retail at 27%.
Blockchain to enter mainstream supply chain by 2025
While there are a wide selection of examples of blockchain already in use today, according to Capgemini, we are still very much in the experimentation phase of the technology’s development.
The report, which analysed 450 organisations’ use of the technology, found that 87% of companies are still in the early experimental phases, developing proof-of-concepts. Just 3% have deployed blockchain at meaningful scale.
The report predicts this phase will continue for the next few years, with a peak in 2020.
From there Campgemini projects the technology will enter mainstream use in the supply chain by 2025.
The motives behind blockchain investment
For the vast majority of companies investing in blockchain, the primary motivation is driving down costs. In the UK 93% of companies engaging in blockchain investment are doing so to reduce costs, compared to 89% wordwide.
Risk reduction was also a key motivation, with 87% of companies in the UK citing this as a reason for investment. However, worldwide this is a motive for just 50% of companies.
In third was revenue increases, with 85% of UK companies investing in blockchain to grow profits. Worldwide, this number was at 57%.
However despite the potential for the technology to improve traceability – a topic of particular concern to the food industry given the UK’s past scares in this area – only 36% of UK companies considered this a key motive, compared to 81% worldwide.
Transparency, too, was oddly low as a motive for blockchain investment in the UK, at 30% versus 79% globally.