Digital transformation spending is to reach almost US$2trn by 2022, growing at a compound annual growth rate (CAGR) of 16.7%.
According to the International Data Corporation (IDC), the $1.97trn spent on digitally transforming businesses will cover Internet of Things (IoT), artificial intelligence (AI), cloud, 3D printing, 5G, automation, and edge computing.
The company claims that discrete manufacturing will contribute $220bn to the total, and that a lot of the industry’s spending will be targeted towards innovation and supply chain.
The transportation sector, which will account for $116bn, will also focus its digital transformation spending on supply chain optimisation.
“In the transportation industry, the leading strategic priority is digital supply chain optimization, which translates to nearly $65 billion in spending for freight management and intelligent scheduling,” IDC stated.
“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,” commented Shawn Fitzgerald, Research Director at Worldwide Digital Transformation Strategies.
“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.”