SINGAPORE (July 31): Spending on blockchain solutions in Asia Pacific excluding Japan (APAC ex-Japan), is predicted to reach US$2.1 billion ($2.86 billion) in 2022, according to IDC’s Worldwide Semi-annual Blockchain Spending Guide.

Blockchain spending is expected to grow rapidly over 2017-2022, with a five-year compound annual growth rate (CAGR) of 72.6%.

In this year, blockchain solutions spending is forecasted to rach US$272.7 million, which is almost double of US$138.1 million last year.

Simon Piff, vice president of IDC Asia/Pacific's IT Security Practice Business, says, “What we are witnessing in the APEC ex-Japan market is that those that have already adopted blockchain technologies are seeing the savings that can be derived. This translates into savings in time, removal of complexity, and an increased velocity in transactions.”

Hence, this provides those that already adopted blockchain technology a first-mover advantage and over time the savings will be industry-wide, according to Piff.

However, technology providers are also stepping up and providing platforms and services that can help companies accelerate their implementation of blockchain technology, allowing them to build upon the lessons learned by the early movers.

According to the survey, the top three industries that will contribute about 66.5% of the overall Blockchain spend this year are banking, discrete manufacturing and insurance.

The fastest growing industries in terms of Blockchain adoption are process manufacturing with (81.3% CAGR), followed by retail (78.4% CAGR) and discrete manufacturing (72.9% CAGR) over the forecast period of 2017-2022.

Swati Chaturvedi, Senior Market Analyst at IDC Asia/Pacific, says, “APeJ is still in its nascent stages of adoption as it received skepticism earlier because of its security issues. Now, this digital ledger technology has grown beyond borders as we have seen governments/central banks and financial institutions in countries like India, China, Singapore, Australia, South Korea among others test out pilot projects to reap maximum benefits.”