May 17, 2020

Spending on digital transformation technologies to reach $1.3tn in 2018

AI
IoT
Internet of Things
Artificial intelligence
Jonathan Dyble
2 min
Digital transformation
According to new research from the International Data Corporation (IDC), spending on digital transformation technologies, including hardware, software a...

According to new research from the International Data Corporation (IDC), spending on digital transformation technologies, including hardware, software and services, is set to exceed $1.3tn by 2018.

This would represent a 16.8% annual increase on the approximate $1.1tn in spending that is expected to come through 2017. Further, the IDC suggests that this will be maintained, forecasting a compound annual growth rate of 17.9% in the period 2016-2021.

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“While the investment strategies may differ from company to company, the objective remains the same: to reimagine and reconstruct the business to compete in the increasingly digital economy that's platform-powered and ecosystem-enabled,” said Eileen Smith, Program Director in IDC's Customer Insights & Analysis Group.

“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 (IoT), artificial intelligence (AI) and cognitive computing, and robotics.”

The manufacturing industry is expected to see a large proportion of this investment, specifically the discrete manufacturing ($214bn) and process manufacturing ($127bn) sectors. Other industries that are also forecast to see significant investment include professional services ($133bn) and transportation ($127bn).

However, despite this, the industries that are expected to see the greatest level of growth include the business areas of construction (32.1% CAGR), Retail (21.9% CAGR) and healthcare (21.7% CAGR).

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