Spending on digital transformation technologies is forecast to grow at 16.8 percent to $1.3 trillion in 2018 and reach $2.1 trillion in 2021, according to IDC.
Digital transformation spending will achieve 17.9 percent CAGR over the 2016-2021 forecast period.
Earlier, IDC said digital transformation spending will touch $1.7 trillion in 2019.
Enterprises will be spending $662 billion on digital technologies that support new or expanded operating models in 2018.
In addition, enterprises will be spending $326 billion on digital technologies supporting omni-experience innovations that transform how customers, partners, employees, and things communicate with each other and the products and services created to meet unique and individualized demand.
Enterprises will be spending $240 billion on information alone they strive to obtain and leverage information for competitive advantage through better decisions, optimized operations, and new products and services.
“While some industries are more focused on the core technologies underlying the 3rd Platform, particularly cloud, big data and analytics, and mobility, many have shifted their investment focus toward the Innovation Accelerators, such as the Internet of Things, artificial intelligence and cognitive computing, and robotics,” said Eileen Smith, program director in IDC’s Customer Insights & Analysis Group.
Discrete manufacturing will invest $214 billion in digital transformation.
Digital transformation spending by professional services will be $133 billion.
Process manufacturing will be spending $132 billion on digital transformation.
Transportation will be spending $127 billion on digital transformation.
Industries such as discrete manufacturing, professional services, process manufacturing and transportation will be spending the most on operating model transformation.
Information transformation will be the second largest area of investment for both the discrete and process manufacturing industries.
Omni-experience transformation coming will be the second investment for the professional services and transformation industries.
United States will be spending $437 billion on digital transformation in 2018.
Asia Pacific excluding Japan will be spending $412 billion on digital transformation.
Europe, the Middle East, and Africa (EMEA) will be spending $280 billion on digital transformation in 2018.
Canada with 25.2 percent CAGR, Latin America with 23.3 percent CAGR, Central and Eastern Europe with 22.1 percent CAGR, and the Middle East and Africa with 22 percent CAGR will be achieving the fastest growth in digital transformation spending in 2018.
“Even in regions with relatively slow uptake such as Central and Eastern Europe, where DX spending was just $21 billion in 2017, enterprises and public sector organizations are rethinking their approaches and embracing the change,” said Jan Alexa, senior research analyst, IDC Insights, CEMA.