Spending on digital transformation technologies and services is forecast to grow 10.4 percent in 2020 to $1.3 trillion, according to IDC report report.
The growth in spending on digital transformation technologies and services in 2019 was 17.9 percent.
DX technology investment has not gone unscathed, but so far it has been affected to a lesser extent since many large-scale DX projects underway or planned are instrumental to broader strategic business initiatives, Craig Simpson, senior research manager with IDC’s Customer Insights and Analysis Group, said.
Personal and consumer services, which includes hotels, theme parks, casinos, and movie theaters, will see an increase of 5.3 percent in its digital transformation spending this year, down from 18.4 percent growth in 2019.
Discrete manufacturing, the industry with the largest digital transformation spending amount, will grow 6.6 percent this year, down from 14.5 percent growth in 2019.
The industries expected to see the strongest growth in digital transformation spending in 2020 are construction (16.3 percent) and healthcare (15.7 percent), both of which will see spending grow more slowly than last year.
COVID-19 has wiped off almost $500 billion of worldwide DX technology investment between 2020-2023 from pre-COVID-19 forecast.
The digital transformation use cases that will receive the most spending this year include autonomic operations ($51 billion), robotics manufacturing ($47 billion), and root cause ($35 billion), all of which will be driven by the manufacturing sector.
United States will remain the largest geographic market for digital transformation spending, delivering roughly one third of the worldwide total in 2020.
Western Europe will be the second largest region for digital transformation spending, following closely by China.
These two regions will also deliver the strongest year-over-year growth in DX spending at 13.6 percent for China and 12.8 percent for Western Europe.