Investment in Spanish blockchain-based projects will exceed USD 100 million. Latin America will reach USD 77.1 million of investment in 2020.
The blockchain technology market in Spain and Latin America will experience notable growth over the next three years. A report by the Spanish firm Ametic determines that this technology will have sustained growth in Spain, where an investment of more than USD 100 million in 2020 is projected.
The technology consortium recently published a report entitled “State of the art of Blockchain in Spanish companies”. In the document, they detail that the growth of the blockchain market in Spain will focus on the financial sector in terms of investment volume, while the industrial sector will experience further development.
The industrial sector will accumulate higher growth in the next three years, with 56% of the compound annual growth rate (CAGR). This highlights the need to digitize new production processes, giving new value to data, and preparing different information exchange platforms with an additional layer of integrity and security.
The report gathers the results of a survey in which 400 companies from different industrial sectors in Spain participated, which was carried out during the months of September and December of last year. This consultation indicates that only one Spanish company out of 10 is currently working with blockchain projects.
Regarding the level of maturity reached, the document mentions that 68.2% of the country’s blockchain projects are still in an embryonic phase, while 31.8% have entered a production phase. However, it views 2020 as a stage in which digitization will be consolidated, considering that 50% of companies’ spending on technology will be related to data.
Although the development of blockchain projects is guaranteed for the next three years, the analysis found some barriers that are hindering further adoption. A total of 41% of companies still do not use the underlying technology of cryptocurrencies and say that they do not understand how its implementation can help them transform their businesses.
The report notes that it will be necessary to build a plan to help companies understand the virtues of blockchain technology, as well as to define the processes that contribute to their digital transformation.
Latin America Follows the Footsteps
The Ametic team also details that the volume of investment in blockchain projects will have grown 62% more in Spain than in the Latin American market. For this reason, they consider that the achievements of Spanish companies will be benchmarks for the LATAM market, due to their presence and close relationship in the development of new digital business lines.
Latin America will reach USD 77.1 million of investment in blockchain projects in 2020 and will maintain sustained growth of 45% until 2023. Brazil and Mexico will concentrate on 57.2% of the total investment directed to the development of blockchain-based projects that will be promoted in the area in 2020.
The financial sector will be the one making the largest investment on the continent, to adapt the new transactional processes to current regulations and expand their areas of action to new digital markets. On the other hand, the distribution and services sector will experience the greatest evolution in Latin America in the coming years, with a growth of 49% until 2023, as the document reflects.
By Alexander Salazar