There is a growing interest in blockchain technology in businesses and organizations, with predictions that the global expenditure on blockchain solutions will increase tenfold between 2018 and 2022.
According to market research firm International Data Corporation (IDC), the global spending on blockchain is anticipated to increase at a compound yearly growth rate of 73% to hit a figure of $11.7 billion in 2022. It is expected that this year, $1.5 billion will be spent on these solutions.
The United States will see the biggest investments in blockchain solutions, with the world’s largest economy taking 36% of the global expenditure throughout the five-year period. Following behind will be Western Europe followed by China. Countries in the Asia Pacific region will also go through significant investments in the blockchain.
According to the IDC report, on a country-by-country basis, the fastest compounded annual growth rate (CAGR) will be seen in Japan where the CAGR will be 108.7% during the predicted period. Canada will also witness the second-fastest growth in blockchain expenditure, with the CAGR reaching 86.7%.
Across the world, most of the expenditure on distributed ledger technology (DLT) will go to the financial sector, with the year expected to have $552 million spent in this field. The distribution and services sector will take the second place, with the manufacturing and resources sector grabbing the third position.
The effectiveness and cost-effectiveness that blockchain solutions could offer to the manufacturing and resources sectors, including in the distribution and services sector, have been mentioned as part of the reason for the growing adoption of the technology.
“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,” IDC’s Customer Insights and Analysis program vice president, Jessica Goepfert, said.