The total spending on blockchain solutions in Asia-Pacific is expected to reach more than US$500 million in 2019.
Research from IDC reveals that Asia-Pacific (excluding Japan) spending on blockchain solutions is expected to grow 81 percent from US$289.5 million in 2018 to $522.7 million this year.
With a compound annual growth rate (CAGR) of 59.8 percent, IDC said the number could balloon to US$3 billion by 2023.
And with Australia accounting for a big slab of APAC spending, that makes Blockchain an opportunity.
The financial sector is seen as a major contributor, particularly in banking, securities & investment services, and insurance, expecting an investment of US$296.3 million on blockchain solutions in 2019.
It will take decades for blockchain to seep into our economic and social infrastructure.
The manufacturing and resources sector meanwhile is forecast to spend US$91.7 million, while distribution and services will spend US$89.4 million. The infrastructure sector is expected to see the fastest spending growth, with a CAGR of 81.2 percent from 2018 to 2022.
“Blockchain will revolutionize business, but it’s going to take a 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,” IDC Asia-Pacific senior research manager Ashutosh Bisht said.
“Blockchain on the other hand is a foundational technology: It has the potential to create a 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.”
Bisht added that the process of adoption is expected to be gradual and steady, and not sudden, as technological and institutional change “gains momentum”.
IDC said the top use cases to get investments during the forecast period would include trade finance and post-trade/transaction settlements; cross-border payments and settlements; and regulatory compliance. All three is expected to account for 40.3 percent of all blockchain spending.