Worldwide spend on blockchain is expected to reach $11.7bn (£8.9bn) in 2022, according to International Data Corporation (IDC) in its Worldwide Semiannual Blockchain Spending Guide.
That’s a result of a “robust pace” of growth between 2017-2022, representing an compound annual growth rate of 73.2 percent.
To put that increase in perspective, even with adoption of blockchain solutions beginning to gather spend, spend on the technology by the end of 2018 is expected to amount to $1.5bn (£1.14bn), while that figure in itself is double that of last year.
“Enthusiasm for blockchain continues to be universally shared across regions as businesses and organisations 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],” she added.
According to the report, the United States will lead in blockchain investments, delivering more than a third (36%) of worldwide spending throughout the forecast, followed by Western Europe and China and Asia Pacific (excluding Japan and China).
Meanwhile, while all nine regions covered in the report will see “phenomenal” growth, Japan and Canada will lead with rates of 109 percent and 87 percent respectively.
Driven by finance
Rapid adoption of blockchain tech in the banking industry is going to claim a lot of this growth.
The financial sector is set to spend $552m (£420m) in 2018, followed by distribution and services ($379m/£289m) owed to strong investment from retail and professional services industries, while the manufacturing and resources sector will spend $334m (£255m).
Within the financial sector, most popular use cases for the technology in terms of spend will be in cross-border payments and settlements ($193m/£147m), followed by lot/lineage provenance ($160m/£122m) and trade finance & prost-trade/transaction settlements ($148m/£113m), which will also maintain their rank in 2022.
“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,” said Jessica Goepfert, programme vice president, IDC’s customer insights and analysis.
“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.”
Find out more about the blockchain ecosystem at Blockchain Expo North America, 28-29 November 2018, Santa Clara.