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Blockchain Spending In Asia/Pacific Excl. Japan To Reach $2.4 Bln By 2022: IDC

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Blockchain solutions spending in the Asia Pacific excluding Japan (APEJ) is expected to reach $2.4 billion by 2022, according to a report by market research firm International Data Corp. or IDC. The financial sector accounts for about half of the spending, throughout the forecast period.

In its Worldwide Semiannual Blockchain Spending Guide, IDC reported that blockchain spending in the APEJ will also surge 83.9 percent to reach nearly $523.8 million in 2019 from $284.8 million spent in 2018.

The growth over the 2018-2022 forecast period is projected to be at a five-year compound annual growth rate (CAGR) of 77.5 percent, with the infrastructure sector seeing the fastest growth of 99.6 percent, followed y by the distribution and services sector with 83.0 percent. China will contribute to about 70 percent of the APEJ overall spend in 2022.

The guide quantifies the emerging blockchain market by providing spending data for ten technologies across 19 industries and 16 use cases in nine geographic regions.

The study says that networked integrity, distributed power, value as incentive, security, privacy, rights preserved and inclusion are the seven basic design principle of Blockchain Economy that are providing the confidence for industry leaders to accelerate their adoptions of this maturing technology.

IDC sees banking, securities and investment services, and insurance industries investing $294.8 million combined in blockchain solutions in 2019.

Trade Finance & Post Trade/Transaction settlements and Cross Border Payments & Settlements are the two blockchain use cases that will receive the most investment of $82.1 million and $79.0 million, respectively in 2019. The banking industry will be the largest investor for both these use cases.

APEJ contributes around 18.4 percent of the overall worldwide spending on Blockchain in 2019 and is ranked third in terms of spending, topped by the U.S. with 37.6% percent and Western Europe with 23.7 percent.

In another recent report, IDC said global spending on blockchain solutions is expected to be nearly $2.9 billion in 2019, and will reach $12.4 billion in 2022, a significant growth in three years. The financial sector and the U.S. will lead the sector wise and region wise spending, respectively, the study noted.

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