International Data Corporation (IDC) Estimates $11.7 Billion In Blockchain Spending Globally By 2022
The International Data Corporation, a market research firm that provides various services for businesses in spheres such as information technology, telecommunications, and consumer technology, published its new report called the “Worldwide Semiannual Blockchain Spending Guide”.
The report estimated that blockchain spending at the global level would reach $11.7 billion in 2022. This year, worldwide spending is expected to be $1.5 billion, almost double compared to last year. In annual terms, the figure will increase at a robust pace in the period between 2017 and 2022 with a five-year compound annual rate (CAGR) of 73.2%.
“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).”
The financial sector is expected to be the most active sector adopting blockchain, especially thanks to the blockchain-friendly banking industry. Over $550 million is to be spent by the end of this year in the financial sector. The list continues with the distribution and services sector ($379 million in 2018) and the manufacturing and resources sector ($334 million in 2018). However, when it comes to the industries with the fastest growth in blockchain spending, the highest CAGR figures will come from process manufacturing (78.8%), professional services (77.7%), and banking (74.7%).
As expected, the United States will see the largest blockchain investments and deliver more than 36% of worldwide spending throughout the forecast. Western Europe will be the next largest region for blockchain spending, followed by China and Asia/Pacific (excluding Japan and China). All nine regions covered in the spending guide will see phenomenal spending growth over the 2018-2022 forecast period with Japan and Canada leading the way with CAGRs of 108.7% and 86.7%, respectively.
We continue to see the greatest spending and growth for blockchain around lot lineage and asset and goods management. Highly visible scandals combined with complex supply chains and incomplete information set the stage for investments and projects in these areas.
“End to end, the stakeholders have a vested interest in solving these issues. 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.” said Jessica Goepfert, program vice president, IDC's Customer Insights and Analysis.