According to a report conducted by KPMG International and HFS Research, blockchain investment has dropped by 63% due to the COVID-19 pandemic. However, investment is expected to increase as large companies seek to gain a competitive advantage in the post-COVID-19 business environment.
14 August 2020 | AtoZ Markets – COVID-19 continues to impact communities and economies around the world. Organizations have adopted various operating strategies and policies to mitigate the spread of viruses and enhance public safety. However, while some industries are growing fast and strongly, others are at risk of collapse due to significant intervention.
Emerging Technology Investments Will Increase Over the Next 12 Months
In 2020, KPMG International and HFS Research conducted two cross-industry quantitative surveys. They surveyed 900 business and technology executives about companies’ investment and adoption of emerging technology. The report said:
“The potential impact of emerging technologies such as Cloud, Automation, Analytics, Artificial intelligence, Blockchain, 5G, Low-code software is unquestionable. And when they converge, their impact on organizational growth is almost inconceivable.”
57% of executives said the pandemic has changed a company’s strategic priorities for emerging technologies. However, 59% of executives said the COVID-19 pandemic was the catalyst for accelerating their digital transformation initiatives. Executives expect to increase spending in almost every technology area over the next 12 months as they seek to restart their businesses and respond to new realities. Moreover, 56% of executives agree that cloud migration is an absolute necessity.
64% of executives said that the combination of emerging technologies is better than using any technology alone. Over 80% of companies have plans to invest in emerging technologies including blockchain.
Blockchain Investments Drops 63% Due to Pandemic
Some technologies have been prioritized since COVID-19 hits, while others have seen short-term spending cuts. Blockchain investment has dropped by 63% due to the COVID-19 pandemic. Blockchain lost investment at the highest average rate compared to other emerging technology sectors. Investments in the cloud, automation, analytics, artificial intelligence, and 5G were also down 18%, 21%, 13%, 45%, and 50%. The survey report stated:
“Investment reductions expected in the near term for certain emerging technologies, such as 5G and edge computing, AI, and blockchain. At the same time, rapidly shifting business priorities are creating new opportunities and use cases for these technologies as the new reality progresses.”
But KPMG’s Global Head of Innovation, Steve Hill, said reliability issues continue to hinder emerging technologies. “Visible trust gaps for emerging technologies such as AI, blockchain and internet-of-things (IoT) continue to remain significant barriers to adoption,” he said.
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