Global Digital Transformation (DX) Spending Forecast: USD 1.8 Tn in 2019, USD 6 Tn by 2022
Digital Transformation (DX) trend is picking up at a faster rate and more technology investments are directed towards the same!
A latest report by a renowned market research firm makes this evident with some interesting numbers about the growth of the global DX market in 2019.
In its latest update to the Worldwide Semi-annual Digital Transformation Spending Guide, IDC said the global DX spending is expected to reach USD 1.8 trillion in 2019, 17.8 percent more than the previous year.
And, the spending over the next four years is going to touch whopping USD 6 trillion!
“Worldwide DX technology investments are expected to total more than $6 trillion over the next four years,” says Eileen Smith, program vice president with IDC’s Customer Insights & Analysis group.
DX Investment: Industry-wise
While a strong DX technology investment growth of 15-20% is expected across all sectors, the financial sector is poised to witness the fastest growth at a CAGR of 20.4% between 2017 and 2022.
Discrete Manufacturing and Process Manufacturing are going to be the top two industries for DX investment, with ‘smart manufacturing’ on priority backed by autonomic operations, manufacturing operations, and quality.
Retail, followed by Transportation and Professional Services, stands next eyeing huge investments in strategic areas of operations such as omni-channel commerce, digital supply chain optimization and transforming workspace.
At a 21.4 percent CAGR, the Professional Services industry is expected to stand above the transportation industry in overall DX spending for 2019.
By use-cases that support specific program objectives, autonomic operations lead the race expecting USD 52 billion DX investment in 2019, followed by robotic manufacturing (USD 45 billion) and others.
When it comes to the power sector, DX spending is going to be seen largely for augmented maintenance, intelligent and predictive grid management.
However, virtualized labs at a CAGR 108.9 percent is going to make the largest spending during the forecast period (2018-22), followed by digital visualization (53.5% CAGR) and augmented design management (43.9% CAGR).
By Technology: Hardware and IT Services Take Lead!
By Technology industry, hardware and services sub-sectors are expected to account for the highest spending in 2019.
These two sectors together are likely to account for more than 75 percent of the DX spending in technology industry.
IT (USD 154 billion) and Connectivity (USD 102 billion) are going to account for major portion of the services spending in DX in 2019.
Whereas, Hardware spending in DX is going to be seen across multiple sub-sectors such as Enterprise Hardware, Personal Devices and IaaS Infrastructure.
Meanwhile, Software spending in DX is expected to touch USD 253 billion in 2019.
Overall, IaaS is expected to witness the highest growth in DX spending with 35.9 percent CAGR, followed by Application Development and Deployment Software (26.7 percent CAGR), and Business Services (26.5 percent CAGR).
“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,” says Craig Simpson, research manager with IDC’s Customer Insights & Analysis group.
The United States and China are going to top the list of 2019 DX spending by region, with more than 50 percent of the global share.
The DX spending in US market is likely to be focused on IT services, applications, and enterprise hardware, with Discrete Manufacturing (USD 63 billion), Professional Services (USD 37 billion) and Transportation (USD 34 billion) industries leading the way!
Chinese DX market is going to see a major chunk of spending in Discrete Manufacturing (USD 55 billion), followed by Professional Services (USD 31 billion) and Government (USD 21 billion) sectors.
Overall, the report covers 210 use cases and 12 technology categories across 19 industries and nine geographies to measure the global DX spending in 2019 and further.
Digital Transformation Trend All the Way, Gear up for the stunning race!