Asia Pacific (excluding Japan) spending on blockchain solutions will reach US$522.7 million by 2019, an increase of 81% over 2018’s US$289.48 million, according to IDC.
IDC expects Asia Pacific blockchain spending to grow rapidly throughout the 2018-23 forecast period with five-year compound annual growth rate (CAGR) of 59.8% with a total spending of US$3 billion by 2023.
“Blockchain will revolutionize business, but it’s going to take bit longer, because blockchain is not a ‘disruptive’ technology, which can attack the traditional business models with a low-cost solution and overtake the incumbent firms quickly. Blockchain on the other hand is a foundational technology: It has a potential to create new foundation for our economic and social system. But while the impact will be enormous, it will take decades for blockchain to seep into our economic and social infrastructure,” said Ashutosh Bisht, senior research manager at IDC Asia Pacific.
Banking, securities and investment services, and insurance industries will invest US$296.3 million combined in blockchain solutions in 2019, said IDC. 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$91.7 million and US$89.4 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 81.2%, followed closely by the public sector with a CAGR of 73.6%.
From a technology perspective, IT services and business services (combined) will represent 60% of the blockchain spending in 2019 with IT services receiving slightly more investment over the forecast period. Blockchain platform under software will be the second largest technology category, accounting for 27.3% of the overall spending in 2019.
Asia Pacific will contribute around 19.3% of the overall worldwide spending on blockchain in 2019 and is ranked third in terms of spending, topped by the US and Western Europe. Over the forecast period, China will see phenomenal spending growth with five-year CAGRs of 65.7%, while Asia Pacific will record 50.3% CAGR, respectively.―Digitimes