The global spending on digital transformation technologies and services will increase by 17.1% per annum between 2019 and 2023, according to a new study published by IDC.
Spending on digital transformation technologies is expected to reach $2.3 trillion in 2023.
Craig Simpson, a research manager with IDC’s Customer Insights and Analysis Group, said: “We are approaching an important milestone in DX investment with our forecast showing the DX share of total worldwide technology investment hitting 53% in 2023.
“This will be the first time DX technology spending has represented the majority share of total worldwide information and communications technology (ICT) investment in our forecast, which is a significant milestone and reflective of the larger commitment to enterprise-wide digital transformation.”
Process manufacturing will record the highest spending followed by the retail and then the professional services and transportation sectors.
In the professional services and transportation and retails sectors, intelligent building energy management and freight management, will record the largest spending.
Ashutosh Bisht, senior research manager for IDC’s Customer Insights & Analysis Group, adds: “In the current competitive business world, digital transformation is the topmost strategic priority for every organisation. Nevertheless, the concept is confusing and intricate. Digital transformation involves managing the existing business and building for the future at the same time, something like changing the engine of the plane while in flight.
“Enterprises across Asia/Pacific are adopting emerging technologies to enhance their operational excellence and connect more efficiently with their customers.”
The US is expected to remain the largest market, delivering roughly one-third of the worldwide total throughout the forecast.
China will follow the US and then Europe.