Spending on blockchain solution is estimated to almost double to US$281.69 million in 2018 from US$148.76 million in 2017 in Asia Pacific excluding Japan, said IDC recently.
The rapid growth in the region will go beyond this year to hit a CAGR of 90.7% during the 2016-2021 period, faster than the projected worldwide growth of 81.21%.
China’s blockchain CAGR in the said period will even be higher than the region’s, at 95%, IDC estimated.
"Blockchain technologies are being adopted by a wide range of industries across the region," said Simon Piff, Vice President, IDC Asia/Pacific (Singapore). "While many of the use cases are coming from the financial services industry; in markets as diverse as Australia, Thailand, and Singapore, we are also seeing strong acceptance across the entire supply chain, from food provenance, to logistics”.
In addition, government regulators are taking advanced steps in adopting this technology from financial regulators looking to improve settlements, to port and customs authorities looking to drive efficiency and improve integrity and velocity of many traditionally paper-based transactions, IDC observed.
Much of the work is in its early stages as evidenced by the proof-of-concept projects amongst organizations and governments in the region, the research firm added.
Discrete manufacturing, retail to catch up
While financial services is the overwhelming forerunner in deploying a collaborative approach to Blockchain adoption, discrete manufacturing and retail industries will not be far behind, given the fact that manufacturers & retailers will be given enhanced visibility, accountability and transparency on the global supply chain level and industrial processes, said Swati Chatu rve di, Senior Market Analyst, Customers Insights & Analysis, IDC Asia/Pacific.
Banks to drive spending
Blockchain spending will be led by the financial sector driven largely by rapid adoption in the banking industry, far followed by the manufacturing and resources sector, IDC said.
Within the financial sector, blockchain lends itself to several common use cases including regulatory compliance, cross-border payments & settlements, custody and asset tracking, and trade finance & post-trade/transaction settlements, the firm noted.
Cross-border payments & settlements will be the use case that sees the largest spending in 2018, followed by trade finance & post-trade/transaction settlements and regulatory compliance, it added.
From a technology perspective, IT services and business services (combined) will account for roughly 60% of all blockchain spending throughout the forecast with spending well balanced across the two categories, according to IDC.
Blockchain platform software will be the largest category of spending outside of the services category and one of the fastest growing categories overall, along with security software, IDC added.