A new update from the comprehensive semiannual blockchain spending guide predicts blockchain spending to reach a new peak of almost $12 billion in 2022.
America Dishes out the Most
Spending is expected to increase with a five-year compound annual growth rate (CAGR) of 73.2 percent. IDC, the company behind the report, expects money spent within the blockchain sector to reach $1.5 billion, which is already double the amount compared to last years figures.
The United States will lead the charge, responsible for more than a third of worldwide spending through this five-year forecast (36 percent). With some of the largest crypto-related companies within the U.S. such as Coinbase, Bitpay, and Bitfinex, it makes sense most of R&D would be located here. As U.S. regulators begin to understand more about cryptocurrency, new laws and rulings may be introduced that further encourage additional spending within this sector.
Western Europe is the second largest region for blockchain spending, followed by China and Asia/Pacific. This third region does not include Japan and China, both of which have been enormous markets for cryptocurrency adoption.
Regardless of region, all will see huge spikes in their spending, with Japan and Canada leading the pack at 108.7 percent and 86.7 percent CAGR respectively.
The report further goes into which specific sectors will invest the most funding within blockchain and reveals that the financial industry and IT sector will dominate. This finding isn’t particularly surprising, given the number of immediate applications blockchain has for both areas.
For finance, blockchain could help with asset and goods management, introduce transparency in supply chains, as well as revolutionize how distribution is handled. In IT, blockchain platforms could be the next killer app, as well as security software.
Further spending also includes the costs and benefits of potential new job openings, some for positions that haven’t existed in the past. With many universities across the globe finally introducing a crypto curriculum, it will be interesting to see what the market for cryptocurrency looks like in five years.