Worldwide Blockchain Spending to Hit Nearly $12 Billion By 2022
According to a new update to the Worldwide Semiannual Blockchain Spending Guide from International Data Corporation (IDC), worldwide spending on blockchain solutions is forecast to reach $11.7 billion in 2022.
The report stated that IDC expects blockchain spending to grow at a “robust pace” throughout the 2017-2022 forecast period with a five-year compound annual growth rate (CAGR) of 73.2%. Therefore, worldwide blockchain spending is expected to be $1.5 billion in 2018, double the amount spent in 2017.
“Enthusiasm for blockchain continues to be universally shared across regions as businesses and organizations alike continue to explore the technology’s potential business application,” said Stacey Soohoo, research manager with IDC’s Customer Insights & Analysis team. “Regulatory concerns and industry standards continue to hinder widespread adoption as governments around the globe work with enterprises to formulate policies and governance. As such, cross-business collaboration and blockchain interoperability are emerging as key aspects in the growth of the distributed ledger technology (DLT).”
Due to banks being the early adopters of blockchain technology, the spending trajectory is expected to be led by the financial sector. In the data report, $552 million was spent on blockchain by the financial sector alone in 2018. The distribution and services sector follows, having invested a reported $334 million.
The United States delivers more than 36 percent of worldwide spending on blockchain technology out of eight different regions across the globe. Cross-border payments and settlements are identified as the most popular use case for the technology with a total of $193 million spent on this field.
Jessica Goepfert, program vice president for the International Data Corporation, believes the future is bright for the emerging blockchain market.
“We continue to see the greatest spending and growth for blockchain around lot lineage and asset and goods management … Manufacturers want to ensure products arrive where they are supposed to arrive. Retailers and wholesalers seek assurance around the validity and quality of the products they are selling. And consumers are demanding greater transparency from providers.”