Due to the mass adoption of the blockchain in the Middle East and Africa (MEA) in the next few years is projected to significantly increase investments in technology in these regions.
According to a new report by the American company market research International Data Corporation (IDC), the governments of the MEA in the four years to grow their investment in blockchain solutions to 400%.
MEA will increase the cost of the blockchain with $21 million in 2019 to $105 million by 2023.
The IDC report notes that the blockchain technology is gaining a greater stake in the digital transformation initiatives in the MEA region. In particular, it is projected that the country MEA will increase its spending on the blockchain with $21 million in 2019 to $105 million by 2023, with a total annual growth rate of almost 50%.
According to the report, the power in the MEA region actively develops solutions for the blockchain to reduce the risk of fraud, enhance security and improve governance.
Lalchandani Jyoti (Jyoti Lalchandani), Vice-President and regional head of Department, IDC Middle East, Turkey and Africa, stressed that governments in the region MEA study a number of new technologies including the blockchain. Lalchandani also noted that many state structures are not ready for digital transformation:
“Governments in the region are under pressure, the quest to become as efficient as possible. However, it is a troublesome task since many public organizations are just not ready for a digital redesign. Whether the search of ways of integration of 5G, AI and the blockchain or protection from the invasion of digital trust, government agencies must learn a whole new set of IT skills.
The share of investment in the blockchain the total cost of digital transformation a small
Despite the fact that the blockchain is increasingly researched in the countries of MEA, the cost of the blockchain still represent a small part of the overall initiatives of digital transformation. According to IDC, the countries of the MEA spent a total of $12.8 billion on digital transformation, and it is expected that by 2023, this amount will exceed $15 billion.
With the development of the sector, IDC is constantly updating forecasts of the costs of the blockchain. Previously, the research firm predicted that global spending on the blockchain will be nearly $3 billion in 2019, with growth of 89% in 2018. IDC also predicted that this figure in 2023 will be nearly $16 billion.
Whereas in the MEA region has seen significant growth in spending on the blockchain, the costs for other regions such as Asia-Pacific sector, excluding Japan (APEJ), forecasted at over $105 billion in the coming years. Another IDC prediction: by 2022 APEJ spend on the blockchain $2.4 billion.