Market intelligence provider International Data Corporation (IDC) has published new findings showing that worldwide investment in blockchain solutions is expected to reach almost $2.9 billion in 2019.

In a press release (Mar 4), IDC said its updated Worldwide Semiannual Blockchain Spending Guide noted this predicted figure is 88.7% higher from the $1.5 billion spent last year. Out of almost $2.9 billion, IDC also indicates the financial sector as the main growth driver of blockchain spending, contributing over half of the predicted total expenditure at more than $1.1 billion in blockchain investment.

Other notable blockchain spenders are the manufacturing and resource sector anticipated at $653 million, and the distribution and services sector at $642 million. The spending guide researches 10 technologies across 19 industries, and 15 use cases in nine geographic regions.

IDC expects blockchain spending to grow at a “robust pace” over 2018 to 2022 with a five-year compound annual growth rate (CAGR) of 76.0% forecasted with a total spending of $12.4 billion in 2022.

In terms of adoption, cross border payments and settlements, along with trade finance and post-trade/transaction settlements, have been identified as the two blockchain use cases that will receive the most investment – at $453 million and $285 million respectively for 2019. Banking will be the largest investor in both use cases.

“The use cases that comprise the blockchain opportunity are developing as swiftly as the technologies enabling it. While spending for more developed use cases in the financial sector like trade finance and cross-border payments is still healthy and growing strong, relative to six months ago we’ve seen an acceleration in spending across a variety of other areas, such as energy settlements and warranty claims. We are continuing to monitor and measure these developments on a regular basis and are inspired by the various forms of innovation blockchain delivers,” said IDC’s program vice president for customer insights and analysis, Jessica Goepfert.

In terms of technology investment, IT services and business services will collectively take up about 70% of total blockchain spending in 2019, with the former additionally expected to receive further new investment during the forecasted period. Blockchain platform software will be the largest segment of spending outside the services category, and the second fastest growing category overall.

By geographical region, the US is expected to see the largest blockchain spending this year at $1.1 billion. Western Europe ($674 million) and China ($319 million) follow next. All the nine regions covered in the spending guide are forecasted to see “phenomenal” spending growth, led by Japan and Canada with five-year CAGRs of 110% and 90% respectively for 2018-2022.

2019 will be a year of mainstream adoption, but will rely heavily on reshaping the ideology of a blockchain revolution,” said Stacey Soohoo, IDC’s research manager for customer insights and analysis.