Market intelligence firm International Data Corporation forecasts spending on technologies and services that enable digital transformation to increase by 16.7% over the next five years.
Spending on solutions to digitally transform business practices, products and organisations are expected to reach $1.97 trillion in 2022.
Digital transformation use cases that will record the largest investments include autonomic operations and intelligent and predictive grid management for electricity, gas and water.
The above-mentioned will record investments above $40 billion, followed by cases including self-healing assets and automated maintenance, which will be just above $20 billion.
Eileen Smith, programme director with IDC’s Customer Insights and Analysis Group, said: “Industry spending on DX technologies is being driven by core innovation accelerator technologies with IoT and cognitive computing leading the race in terms of overall spend.
“… artificial intelligence and machine learning are dramatically changing the way businesses interact with data and enabling fundamental changes in business processes.”
Shawn Fitzgerald, research director at IDC, added: “IDC predicts that, by 2020, 30% of G2000 companies will have allocated capital budget equal to at least 10% of revenue to fuel their digital strategies.
“This shift toward capital funding is an important one as business executives come to recognise digital transformation as a long-term investment. This commitment to funding DX will continue to drive spending well into the next decade.”
Craig Simpson, research manager with IDC’s Customer Insights and Analysis Group, reiterated: “Areas regarded as pilot projects just a year ago have already become mature operations in some industries.”
The United States and China will be the two largest geographic markets for DX spending,
For more information about the report, click here…