International Data Corporation (IDC), a leading provider of market intelligence and advisory services in telecommunications, IT, and consumer technology industries, published a report on blockchain spending last week. The company 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%.
According to the report, the US will be the leading contributor to the distributed ledger technology (DLT) market, and will account for about 36% of all blockchain spending. Western Europe goes next, followed by China and the Asia/Pacific region without China and Japan (APeJC). When it comes to the CAGR over the 2018-2022 forecast period, the largest figure is expected from Japan and Canada, with 108.7% and 86.7% respectively.
Stacey Soohoo, research manager at IDC, commented:
“Enthusiasm for blockchain continues to be universally shared across regions as businesses and organizations alike continue to explore the technology’s potential business application.”
“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,” she added.
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%).
The report, called the Worldwide Semiannual Blockchain Spending Guide, covers blockchain spending across 19 sectors and 16 use cases in nine regions.
In February, IDC estimated that blockchain spending would touch $2.1 billion in 2018 and $9.2 billion in 2021, a bit more than the current forecasts.
This article appeared first on Cryptovest
