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Report: Blockchain Spending to Hit Nearly $12 Billion By 2022
Spending on blockchain solutions is forecasted to increase annually at a growth rate of close to 75 percent through 2022, according to a new report.
A new report published by the International Data Corporation expects spending on blockchain solutions to increase annually at a growth rate of nearly 75 percent through 2022.
Dubbed the "Worldwide Semiannual Blockchain Spending Guide," analysts at the firm expect total spending on projects in the blockchain industry to hit $11.7 billion in 2022 alone, compared to the $1.5 billion expected to be spent in 2018. The report further added 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."
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This spending trajectory is largely expected to be led by the financial sector, with banks being early adopters of the technology. The report explains that data shows a total of $552 million was spent on blockchain by the financial sector alone in 2018. The distribution and services sector is not too far behind, having invested a reported $334 million.
Further, the report covers developments in the blockchain industry for eight different regions across the globe with the potential addition of China as a ninth in forthcoming reports.
As the scope of the analysis currently stands, the United States delivers more than 36 percent of worldwide spending on blockchain technology with cross-border payments and settlements being the most popular use case for the technology. A total of $193 million has reportedly been spent on this field.
Looking ahead, Jessica Goepfert, program vice president for the International Data Corporation, said certain use cases for blockchain technology are not going away anytime soon, saying:
"We continue to see the greatest spending and growth for blockchain around lot lineage and asset and goods management ... 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."
Dollar bills image via Shutterstock
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