Businesses Will Spend $1.2 Trillion on Digital Transformation This Year

Businesses Will Spend $1.2 Trillion on Digital Transformation This Year

Foto: Fotolia

Enterprises around the world are making significant investments in the technologies and services that enable the digital transformation (DX) of their business models, products and services, and organizations, according to IDC. Analytics company forecasts global DX spending to reach $1.18 trillion in 2019, an increase of 17.9% over 2018.

"Worldwide DX technology investments are expected to total more than $6 trillion over the next four years," said Eileen Smith, program vice president with IDC's Customer Insights & Analysis group. "Strong DX technology investment growth is forecast across all sectors, ranging between 15% and 20%, with the financial sector forecast to be the fastest with a compound annual growth rate (CAGR) of 20.4% between 2017 and 2022."

The two industries that will invest the most in digital transformation in 2019 are discrete manufacturing ($221.6 billion) and process manufacturing ($124.5 billion). Each of these industries will be pursuing a different mix of strategic priorities, transforming workspace in professional services. A CAGR of 21.4% will enable the professional services industry to move ahead of transportation in terms of overall DX spending in 2020.

The DX use cases, discretely funded efforts that support a program objective, that will see the largest investment across all industries in 2019 will be autonomic operations ($52 billion), robotic manufacturing ($45 billion), freight management ($41 billion), and root cause ($35 billion). Other use cases that will see investments in excess of $20 billion in 2019.

From a technology perspective, hardware and services investments will account for more than 75% of all DX spending in 2019. Services spending will be led by IT services ($154 billion) and connectivity services ($102 billion). Hardware spending will be spread across several categories, including enterprise hardware, personal devices, and IaaS infrastructure. DX-related software spending will total $253 billion in 2019.

The United States and China will be the two largest geographic markets for DX spending, delivering more than half the worldwide total in 2019. In the U.S., the leading industries will be discrete manufacturing ($63 billion), professional services ($37 billion) and transportation ($34 billion) with DX spending focused on IT services, applications, and enterprise hardware. In China, the industries spending the most on DX will be discrete manufacturing ($55 billion), process manufacturing ($31 billion), and state/local government ($21 billion). Connectivity services and enterprise hardware will be the largest technology categories in China.

More from category

90 Percent Current Blockchain Platforms Will Require Replacement by 2021

90 Percent Current Blockchain Platforms Will Require Replacement by 2021

17 Jun 2019 comment

By 2021, 90% of current enterprise blockchain platform implementations will require replacement within 18 months to remain competitive, secure and avoid obsolescence, according to Gartner.

Enterprise WLAN Market Continues Moderate Growth in 1Q19

Enterprise WLAN Market Continues Moderate Growth in 1Q19

17 Jun 2019 comment

The combined consumer and enterprise WLAN market segments increased 6.9% year over year in the first quarter of 2019, finishing at $2.4 billion, according to IDC.

The Future of Self-Service Is Customer-Led Automation

The Future of Self-Service Is Customer-Led Automation

14 Jun 2019 comment

In order to cope with the avalanche of digital information and activities, customers will increasingly turn to automation moving forward, according to Gartner.