NEEDHAM, Mass., October 26, 2022 – Forward-looking organizations have been pursuing digital transformation (DX) with the goal of creating new sources of value through electronic products, services, and experiences. As an added benefit, the pandemic revealed that digital transformation efforts improve an organization’s resilience against market disruptions. Given its importance to future success, global DX spending is forecast to reach $3. 4 trillion in 2026 with a five-year compound annual growth rate (CAGR) of 16. 3%, according to the International Data Corporation ( IDC ) Globally Digital Change Spending Manual .
“Despite strong headwinds from global supply chain constraints, soaring inflation, political uncertainty, and a good impending recession, investment in digital transformation is expected to remain robust, ” said Craig Simpson , senior research manager with IDC’s Data & Analytics Group. “The benefits associated with investing in DX technology, including automation, solid intelligence, operational transparency, and direct support around customer experience, all support targeted areas of business focus to weather the particular current environment of doubt and in order to make the most of any opportunities inside the recovery. ”
The DX use case that will see the largest investments over the prediction period is Innovate, Scale, and Operate, a broad area covering large-scale operations, including making, building, plus designing activities. Core company functions that make up this area include supply chain management, engineering, design and study, operations, and manufacturing plant floor operations. Innovate, Scale, plus Operate will account for more than 20% of almost all DX investments throughout the forecast. The next biggest use cases are Back-Office Support and Infrastructure at more than 15% of all DX spending plus Customer Experience at a lot more than 8%. The fastest growing among the more than 300 DX use cases identified by IDC include Digital Twins and Robotic Process Automation-Based Claims Processing with five-year CAGRs of 35. 2% and 31. 0% respectively.
Nearly 30% associated with worldwide DX spending throughout the outlook period will come from the Discrete and Process Manufacturing industries, where Robotic Production, Autonomic Operations, and Self-Healing Assets plus Augmented Maintenance are among the leading use instances. The next largest industries for DX spending are Professional Services and Retail where Back-Office Support and Infrastructure will be the top DX use case. The Securities plus Investment Solutions industry will experience the particular fastest growth in DX spending along with a five-year CAGR of 20. 6%, followed closely by Banking and Healthcare Providers with CAGRs associated with 19. 4% and 19. 3% correspondingly.
The United States will be the largest geographic marketplace for DX spending through the forecast, accounting for nearly 35% of the worldwide total and surpassing the $1 trillion mark within 2025. Western Europe will be the second biggest region along with nearly a quarter of just about all DX spending. China will see the particular strongest development in DX spending having a five-year CAGR of 18. 6%, followed closely simply by Latin America with a CAGR associated with 18. 2%.
“Consumers and enterprises within the Asia/Pacific (excluding Japan and China) (APeJC) region are growing in connected technology plus they tend to show higher consumption of digital products and solutions, ” said Mario Allen Clement , associate analysis manager for the Asia/Pacific IT Spending Team. “Amidst the pandemic and recuperation, organizations have accelerated their digital engagements, products, and services, which have been predominantly improved by deploying digital technology faster. More and more businesses have started to go electronic as a source of resiliency and innovation, which is usually shown across the region as new offerings plus solutions are usually widely available. The APeJC region is definitely expected to grow in double digits throughout the forecast period exactly where use situations from IoT and Robotics are showing a high potential within the Manufacturing sector. Customer experience, events, and personalized customer journey will be the highlight of pushing a stable growth in digital transformation. ”
The IDC Worldwide Digital Transformation Investing Guide (V2 2022) examines the digital transformation opportunity from an use situation — technologies, industry, and geography — perspective. The particular Spending Guideline quantifies enterprise spending for more than 300 DX make use of cases plus 12 technology markets across 19 sectors and 14 geographic regions. The Guidebook provides investing data with regard to 51 DX strategic priorities and 99 programs as well as technology spending by deployment type (cloud, non-cloud/other).
About IDC Spending Guides
IDC’s Investing Guides provide a granular view of key technology markets from the regional, vertical industry, use case, buyer, and technologies perspective. The spending guides are delivered via pivot table format or custom query tool, allowing the user in order to easily extract meaningful information about each market by viewing data trends and relationships.
For more information about IDC’s Spending Guides, please contact Monika Kumar at [email protected]. com .
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Regarding IDC
International Information Corporation (IDC) is the premier global provider of market intelligence, advisory services, plus events regarding the information technology, telecommunications, and consumer technology markets. With more than 1, three hundred analysts globally, IDC offers global, regional, and local expertise on technology, IT benchmarking plus sourcing, and industry opportunities and trends in more than 110 countries. IDC’s analysis and insight helps THIS professionals, business executives, and the investment community to make fact-based technologies decisions plus to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group ( IDG ), the world’s leading tech media, information, and marketing services company. To learn more regarding IDC, please visit www.idc.com . Follow IDC upon Twitter in @IDC and LinkedIn . Subscribe to the IDC Blog intended for industry news and insights.
Coverage
Companies Covered
BURLINGTON HEALTHCARE PROVIDERS, LLC , LinkedIn Company , Xi’an Xirong Self-healing Type Capacitor Co., Ltd.
Regions Protected
Asia Pacific , China , Japan , Latin The united states , United States , Western Europe
Topics Covered
Electronic transformation , Disaster recovery , Disk-based data protection , Global IT plus economic marketplaces , Leadership transformation , Supply chain management applications
