IDC Blockchain Spending Guide Predicts to Surpass $12 Billion in 2022
Blockchain Spending Predicted To Hit $12 Billion In 2022
According to the new report issued by IDC, blockchain spending is expected to reach up to $12 billion within only five years. This would mark a 73% CAGR (Compound Annual Growth Rate) increase by 2022.
Blockchain Spending Continues To Rise
According to recent calculations by the company called IDC, spending within the blockchain sector is expected to increase by 73.2% within the next five years. This would effectively put blockchain spending at almost $12 billion per year. Currently, the company expects that the sector will reach up to $1.5 billion by the end of the year, which is around double the amount that it reached in 2017.
According to reports, the biggest increase in blockchain spending is expected to come within the US, with over one-third of the global spending (36%) coming from this country. These results are not really that surprising, considering that the US is home to some of the biggest companies that deal with cryptos. Those include BitPay, Coinbase, as well as Bitfinex.
Another reason why this might be the case is that the US is seriously opening up to cryptos. With regulators understanding more and more about this sector, they are also coming up with new laws and rules that would stabilize it. Additionally, such laws are expected to increase the number of those interested in the sector, and thus increase the spending rate.
After the US, the second biggest amount of blockchain spending is expected to come from Western Europe. The third place would be held by China and Asia/Pacific, with the exclusion of Japan and Korea, which are already extremely large forces in the crypto sector.
In the end, no matter what region we look at, all of them are expected to see a significant increase when it comes to blockchain spending. Japan and Canada might even take a lead at some point, considering the expected CAGR to go up to 108.7% for Japan, and 8.7% for Canada.
Two Sectors Expected To Dominate In Blockchain Investing
Going further into the report, we can see the company's predictions regarding which sectors are the most likely to invest in blockchain technology. According to predictions, the most likely sectors to go for blockchain investments are the IT sector, and the financial industry.
To be perfectly honest, this doesn't come as a surprise at all, considering that the blockchain technology was primarily invented in order to aid these sectors in the first place. When it comes to financing industry, for example, blockchain can offer by improving goods and asset management. It can bring transparency when it comes to supply chains, a well as completely revolutionize the handling of distribution.
IT sector can make use of blockchain platforms in an even more direct way. A good example would their use for developing better apps, and various software, primarily the ones regarding the security.
Eventually, the continuous increase in blockchain spending might open up new jobs, and even create positions that were previously non-existent. Even the universities around the world are quick to jump on the opportunity to work with this tech. This is obvious when we notice the recent introduction of a crypto curriculum. If things continue to unravel the way it was predicted, the market can become a very different place than what we know today, all within a five-year period.