Spending on blockchain ‘to reach $11.7bn by 2022’
Spending on blockchain solutions is estimated at $1.5bn this year and will increase annually by nearly 75% to reach $11.7bn by 2022, according to a report published by the market intelligence group International Data Corporation (IDC).
Analysts writing in IDC’s ‘Worldwide Semi-annual Blockchain Spending Guide’ predict that “blockchain platform software will be the largest category of spending outside of the services category and one of the fastest growing categories overall, along with security software.”
The projected increase in spending is expected to be driven largely by the financial sector, with banks among the earliest adopters of the technology. The report states that a total of $552m will be spent on blockchain by the financial sector in 2018, followed by the distribution and services sector, which is investing nearly $379m and the manufacturing and resourced sector, which is allocating $334m.
US leads the field
The analysis suggests that the US accounts for more than 36% of worldwide spending on blockchain technology with cross-border payments and settlements being the most popular application. Around $193m of current US spending is going to this area of business.
The report covers developments in the blockchain industry for eight different regions worldwide, with China likely to be added as a ninth in future editions.
“We continue to see the greatest spending and growth for blockchain around lot lineage and asset and goods management,” says Jessica Goepfert, IDC’s program vice president
“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.”