Businesses will increase their spending on digital transformation by 17% between 2018 and 2019, according to market intelligence firm International Data Corporation.
IDC forecasts enterprises to increase their spending on technologies and services that enable the digital transformation of business models, products and services to $1.18 trillion in 2019.
Efforts that will record the highest digital transportation spending include 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 include self-healing assets and augmented maintenance, intelligent and predictive grid management for electricity, and quality and compliance.
The hardware and services investments will account for more than 75% of all digital transformation spending.
The services spending will be led by IT services ($154 billion) and connectivity services ($102 billion) whilst spending on hardware will be spread across several categories including enterprise hardware, personal devices, and IaaS infrastructure.
The US and China will deliver more than half of the worldwide total in 2019.
Eileen Smith, vice president of IDC’s Customer Insights and Analysis, said: “Worldwide DX technology investments are expected to total more than $6 trillion over the next four years.
“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.”
Craig Simpson, research manager at IDC, added: “Digital transformation is quickly becoming the largest driver of new technology investments and projects among businesses.
“It is already clear from our research that the businesses which have invested heavily in DX over the last 2-3 years are already reaping the rewards in terms of faster revenue growth and stronger net profits compared to businesses lagging in DX initiatives and investments.”
For more information about the report, visit: Worldwide Semiannual Digital Transformation Spending Guide