Digital transformation (DX) spending to reach $3.4 trillion: IDC

Digital transformation (DX) spending is forecast to reach $3.4 trillion in 2026 with a five-year compound annual growth rate (CAGR) of 16.3 percent, according to IDC.
Dollar spending on technology
“The benefits of investing in DX technology, including automation, strong intelligence, operational transparency, and direct support around customer experience, all support targeted areas of business focus to weather the current environment of uncertainty and to make the most of any opportunities in the recovery,” said Craig Simpson, senior research manager with IDC’s Data & Analytics Group.

The United States will be the largest geographic market for DX spending, accounting for 35 percent of the worldwide total and surpassing the $1 trillion mark in 2025.

Western Europe will be the second largest region with nearly a quarter of all DX spending.

China will see the strongest growth in DX spending with a five-year CAGR of 18.6 percent, followed closely by Latin America with a CAGR of 18.2 percent.