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Digital transformation spending to approach $2 trillion by 2022


Digital transformation spending will approach the $2 trillion mark in 2022, good for a 16.7 percent compound annual growth rate, according to IDC. The big question will be how much of digital transformation spending will deliver returns.
 
IDC said spending on technologies and services that enable digital transformation of businesses will hit $1.97 trillion in 2022. Part of the digital transformation spending boom revolves around the reality that every technology--IoT, artificial intelligence, cloud, 3D printing, 5G, automation, edge computing and a lot more--can be lumped into the category.
 
According to IDC, 30 percent of the global 2000 companies will allocate 10 percent of revenue to digital strategies by 2020. Why? Business executives will see digital transformation as a long-term investment.
 
Four industries will account for nearly half of the $1.25 trillion spent on digital transformation.
 
- Discrete manufacturing will spend $220 billion on digital transformation in 2019. Innovation and supply chain will account for a lot of that spending
- Process manufacturing will spend $135 million.
- Transportation will spend $116 billion with supply chain optimization and freight management leading the way.
- Retail will spend $98 billion with an emphasis on omnichannel, e-commerce, new experiences and next-gen payments.
 
Across industries, digital transformation spending will revolve around use cases that are discretely funded. These use cases include robotic manufacturing, automation and intelligent infrastructure for energy.
 
Hardware and services will represent more than 75 percent of digital transformation spending in 2019 with IT and connectivity services leading the way. U.S. and China will account for more than half of the spending.






14/11/18    Çap et