In 2019, US$523.8 million will be spent on deploying blockchain solutions in Asia/Pacific, up 83.9% from 2018, and grow to US$2.4 billion by 2022 with a compound annual growth rate (CAGR) of 77.5% over the next five years.
Ashutosh Bisht, senior research manager for Customer Insights and Analysis at IDC notes that the financial services sector has been leading the efforts around blockchain development, and will continue to do so during the forecast period.
In 2019, the banking, securities and investment services, and insurance industries will invest US$294.8 million in blockchain solutions.
Trade finance & post trade/transaction settlements and cross border payments & settlements are the two blockchain use cases that will receive the most investment (US$82.1 million and US$79.0 million, respectively) in 2019. The banking industry will be the largest investor for both these use cases.
“Networked Integrity, Distributed Power, Value as Incentive, Security, Privacy, Rights Preserved and Inclusion are the seven basic design principle of Blockchain Economy, and are providing the confidence for industry leaders to accelerate their adoptions of this maturing technology, and we have reached an inflection point where implementations are moving quickly beyond the pilot and proof of concept phase for the adoption of Blockchain in APEJ,” said Bisht.
The manufacturing and resources sector, driven by the discrete and process manufacturing industries, and the distribution and services sector, led by the retail and professional services industries, are forecast to see blockchain spending of US$95.0 million and US$90.6 million respectively this year.
The infrastructure sector will see the fastest growth in blockchain spending over the 2018-2022 forecast with a five-year CAGR of 99.6%, followed closely by the distribution and services sector with a CAGR of 83.0%.
“After much experimentation, this technology is beginning to emerge in a range of production environments driven by the thought leadership of early adopters and ever-growing industry of blockchain businesses helping their customers realize the value of this technology,” added Simon Piff, Vice President for Security and Blockchain Research at IDC Asia/Pacific. “Indeed, as we see the emergence of the concept of Digital Trust, blockchain is a key ingredient in delivering this trust, at scale, across many markets, allowing a new pace of business interaction that had previously been restricted by process and approval challenges.”
From a technology perspective, IT services and Business Services combined will account for nearly 71.1% of all blockchain spending in 2019 with IT services receiving additional new investment over the forecast period. Blockchain platform software will be the largest segment of spending outside of the services category and the second fastest growing category overall with a five-year (2018-22) CAGR of 77.9%, followed by IT services with a CAGR of 72.0%.