According to figures released by top market research firm International Data Corporation this week, worldwide expenditure on everything related to blockchain technology will enjoy an annual growth rate of 73.2%, and go from around $1.5 billion this year to $11.7 billion in 2022 – a 1000% increase.
It may have taken a little longer than expected, but the evidence is now irrefutable: Companies and organizations – from major corporations to small family businesses, from councils to hospitals, even factories and farms – are increasingly interested in blockchain technology and how they can benefit from it.
Because of this, top market research firm International Data Corporation expect that global spending on blockchain solutions will grow by almost 1000% between 2018 and 2022.
US Will Enjoy Biggest Blockchain Benefit
The largest investments in this area of technology will be carried out in the United States, and during the five-year period from 2018 to 2022 the world’s no.1 economy will account for 36% of global spending. Western Europe will be the next largest beneficiary, followed by China. The countries of the Asia-Pacific region such as Japan, South Korea, Malaysia and Singapore will also see a significant increase in blockchain-based investment.
According to IDC’s report, the average Compounded Annual Growth Rate (CAGR) will be higher in Japan, where the CAGR will be 108.7%. Canada will be the second fastest, enjoying an average annual growth rate of 86.7% during 2018-2022.
Financial Sector Set To Dominate Blockchain Market
Globally, most of the outgoing cost of Distributed Ledger Technology (DLT) will feature in the Financial Sector, which is expected to account for $552 million this year. Second place is occupied by Distribution and Services, while in third place is Manufacturing and Resources.
Industries expected to enjoy the fastest growth thanks to blockchain investments include Process Manufacturing, with an average annual growth rate of 78.8%. The average annual growth rate of Professional Services will hit 77.7%, while the CAGR of the Banking & Finance Industry will climb to 74.7%.
In the financial sector, the largest DLT spending will be taken up by Cross-Border Payments and Settlements, and it is expected that this year investment will total around $193 million. Around $148 million is expected to be invested in trade finance and post-trade transaction settlements, yet another example of blockchain’s use in the financial sector.
Lineage provenance will account for DLT investments totaling $160 million this year.
Efficiency, cost-effectiveness and profitability are all factors that blockchain technology brings to every sector it has been used in thus far, be it finance, manufacturing, technology, education, transport or health care, a key reason for its rapid and ongoing implementation.
As IDC’s Vice President, Jessica Goepfert says:
“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.”