Digital transformation (DX) spending is forecast to reach $1.97 trillion in 2022, according to IDC.
Digital transformation spending is expected to expand throughout the 2017-2022 forecast period, achieving a five-year compound annual growth rate of 16.7 percent.
The IDC report said 30 percent of G2000 companies will have allocated capital budget equal to at least 10 percent of revenue to fuel their digital strategies by 2020.
“This shift toward capital funding is an important one as business executives come to recognize digital transformation as a long-term investment,” Shawn Fitzgerald, research director, Worldwide Digital Transformation Strategies.
IDC said four industries — discrete manufacturing, process manufacturing, transportation and retail — will be responsible for nearly half of the $1.25 trillion in digital transformation spending in 2019.
Digital transformation spending in 2019
Discrete manufacturing: $220 billion
Process manufacturing: $135 billion
Transportation: $116 billion
Retail: $98 billion
Investing in use cases in digital transformation in 2019
Freight management: $60 billion
Autonomic operations: $54 billion
Robotic manufacturing: $46 billion
intelligent and predictive grid management for electricity, gas, and water: $45 billion
Areas of digital transformation spending in 2019
IT services: $152 billion
Connectivity services: $147 billion
Discrete and process manufacturing industries – will invest more than $167 billion in smart manufacturing next year along with investment of $46 billion in digital innovation and $29 billion in digital supply chain optimization.
Retail industry will focus on improving omni-channel commerce, driving investments of more than $27 billion in omni-channel commerce platforms, augmented virtual experience, in-store contextualized marketing, and next-generation payments.