European Spending on Digital Transformation Will Reach $256 Billion in 2019

European Spending on Digital Transformation Will Reach $256 Billion in 2019

Foto: Fotolia

European spending on technologies and services that enable the digital transformation of business practices, products, and organizations is forecast to reach $378.2 billion in 2022, according to IDC. DX spending is expected to steadily expand throughout the 2017-2022 forecast period, achieving a five-year compound annual growth rate (CAGR) of 15.1%.

Europe is the third largest geography for DX spending, after the United States and China. Four industries will be responsible for nearly 44% of the $256 billion in European DX spending in 2019: discrete manufacturing ($39 billion), process manufacturing ($25 billion), retail ($26 billion), and utilities ($23 billion). For European manufacturers, the top DX spending priority is smart manufacturing. IDC expects the industry to invest more than $27.6 billion in smart manufacturing next year along with significant investments in digital innovation ($8.8 billion) and digital supply chain optimization ($5.5 billion).

In the retail space, the leading strategic priority is omni-channel commerce, which translates to nearly $5.0 billion in spending for related platforms and order orchestration and fulfillment. Meanwhile, the top priority for the utility industry is digital grid, which will drive investments of more than $13.6 billion in intelligent and predictive grid management and digital grid simulation. IDC predicts the largest investments in DX use cases across all industries in 2019 will be freight management ($11 billion), autonomic operations ($7 billion), robotic manufacturing ($8 billion), and intelligent and predictive grid management ($12 billion).

From a technology perspective, hardware and services will account for more than 78% of all DX spending in 2019. Services spending will be led by IT services ($43 billion) and connectivity services ($25 billion), while business services will post the highest growth (19.8% CAGR) over the five-year forecast period. Hardware spending will be spread across several categories, including enterprise hardware, personal devices, and IaaS infrastructure. DX-related software spending will total $55 billion in 2019 and will be the fastest-growing technology category with a CAGR of 18.1%.

More from category

2019 Marketing Trends Report by IBM Watson Marketing

2019 Marketing Trends Report by IBM Watson Marketing

24 Jan 2019 comment

With AI continuing to gain usage among marketing professionals, IBM announced a new report from IBM Watson Marketing identifying a new breed of marketers coming to the forefront.

CEO Confidence in Growth Dips Dramatically

CEO Confidence in Growth Dips Dramatically

23 Jan 2019 comment

Nearly 30% of business leaders believe that global economic growth will decline in the next 12 months, approximately six times the level of 5% last year, a record jump in pessimism.

Six Technologies That Will Reach Mainstream Adoption in Five to Ten Years

Six Technologies That Will Reach Mainstream Adoption in Five to Ten Years

23 Jan 2019 comment

Of the 29 technologies on Gartner’s new Hype Cycle, eight are entering the Slope of Enlightenment and climbing toward the Plateau of Productivity.