24 July, 2018
According to the Worldwide Semiannual Blockchain Spending Guide released by the International Data Corporation (IDC), blockchain spending is expected to reach $11.7 billion by the year 2022. The report analyzes the spending data from 19 industries and 16 use cases in nine regions of the world to create the most accurate forecast.
It’s expected that blockchain spending will see a worldwide compound annual growth rate (CAGR) of 73.2 percent through the 2017–2022 forecast period. There is also $1.5 billion in blockchain spending expected by the end of 2018—which is double the total for 2017.
The financial sector, which accounts for $552 million of blockchain spending in 2018, is the leading contributor to blockchain spending due to the rapid growth of blockchain use in the banking industry. Other sectors, such as distribution and services ($379 million in 2018) and resources ($334 million in 2018) help bring in quite a bit of spending in retail, professional services, and manufacturing.
Throughout Western Europe, China, and the Middle East and Africa (MEA), process manufacturing, professional services, and banking will see the biggest growth as these areas will all see over a 70 percent CAGR in 2018.
Worldwide, cross-border payments and settlements will see huge spending growth in 2018 ($193 million). Lot/lineage provenance as well as trade finance and post-trade/transaction settlements won’t follow too far behind as they bring in $160 million and $148 million respectively. Through the five-year forecast, these three areas are expected to remain the largest contributors for blockchain spending. IT and business services will see growth as well, thanks to the growing need for blockchain platform software and security software.
There is certainly a continuing need for blockchain development and applications in various industries. As Jessica Goepfert, program vice president at the IDC, points out, “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.” Blockchain technology can provide all of this and more, ensuring its importance in global business for a long time to come.