According to a new report from the International Data Corporation, global spending on blockchain will grow at a rate of over 73% through 2022, with Canada and Japan experiencing growth rates of 86.7% and 108.7% respectively, higher than the worldwide average. The report also puts worldwide blockchain spending at $11.7 billion in 2022 alone.

The report, “Worldwide Semiannual blockchain Spending Guide” covers eight different regions, including the Middle East, the United States, Western Europe, Japan, Asia Pacific, and Africa. These regions will represent huge upsurge in blockchain spending, which is currently pegged at $1.5 billion by the end of 2018.

It is interesting to observe that spending on blockchain is increasing at a fast pace on a global level, companies and governments are determined to leverage this new proven, disruptive technology to improve their systems.

“Enthusiasm for blockchain continues to be universally shared across regions as businesses and organizations alike continue to explore the technology’s potential business application” 

Stacey Soohoo, research manager with IDC’s Customer Insights & Analysis team.

Sectors and regions driving the change

The financial sector, with a current blockchain-based spending of about $552 million is expected to lead the blockchain spending rollercoaster in 2022, motivated by a swift implementation of the technology in banking. This will be followed by the distribution and service industry which currently has a spending of about $379 and will be dominated by professional and retail services come 2022 according to the report.

The rate of growth per sector, will, however, be different. The fastest growth in blockchain spending will come from three sectors: the banking sector at a CAGR of 74.7%, the professional services industry at a CAGR of 77.7%, and the process manufacturing industry, which will lead with a CAGR of almost 80%.

According to program vice president, IDC Customer Insights, and Analysis, Jessica Goepfert.

“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.”,

On a regional level, the United States will provide over 36% investment, making the region the largest global investor on the blockchain ecosystem. Following closely will be Western Europe and the Asia Pacific. The Middle East, Western Europe, and Africa will, however, lead growth in blockchain investment in the financial industry this year and will contribute to the industry’s growth rates over the coming years.

Takeaways

The Worldwide Semiannual Blockchain Spending Guide’s research on blockchain technology spending gathers data from 16 use cases, 19 industries, and 10 technologies in 9 geographic regions predicting the amount to be spent by companies implementing blockchain from 2018 through to 2022. Data on cryptocurrency spending, including bitcoin, is not included in the guide. However, it is important to note that confidence in the technology will only increase as companies implement blockchain to improve their systems.

And according to the IDC,

“the comprehensive spending guide was designed to help IT decision-makers to clearly understand the industry-specific scope and direction of blockchain spending today and over the next five years”.

The International Data Corporation‘s findings show that spending on blockchain tech will continue to show significant increase across the globe.