According to IDC, global spending on technologies and services to enable digital transformation (DX) of business practices, products and organisations is set to reach $1.97 trillion in 2022, with a CAGR of 16.7% over the 2017-2022 forecast period.
"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," the analyst says. "This shift toward capital funding is an important one as business executives come to recognize digital transformation as a long-term investment. This commitment to funding DX will continue to drive spending well into the next decade."
Four industries are responsible for nearly 50% of global 2017 DX spending worth $1.25tr-- discrete manufacturing ($220 billion), process manufacturing ($135bn), transportation ($116bn) and retail ($98bn). The top DX spending priority for the discrete and process manufacturing industries is smart manufacturing, with the two industries spending over $1.67bn on smart manufacturing in 2019. The industries will also make "significant" investments in digital innovation ($46bn) and digital supply chain optimisation ($29bn).
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