Spending on Future of Work (FoW) will be nearly $656 billion this year, an increase of 17.4 percent over 2020, IDC report said.
IDC forecasts investment in technologies supporting Future of Work initiatives to exceed $1 trillion worldwide by 2024 with a robust 17 percent CAGR over the five-year forecast period.
Organizations will invest in technologies and services that power automation, human-machine collaboration, new organizational structures and leadership styles, dynamic learning opportunities, a reimagined workplace, and a digital work environment that is not bounded by time or physical place, said Holly Muscolino, research vice president, Content Strategies and the Future of Work.
Organizations are investing in a wide range of technologies and services to facilitate the transition to the new workplace and an evolving workforce.
The largest area of investment in 2021 will be hardware, where companies are expected to purchase $228 billion in endpoint devices, enterprise hardware, infrastructure as a service (IaaS), and robotics and drones.
Services, including business, IT, and connectivity services, will be the second-largest area of spending at more than $123 billion.
Emerging technologies like artificial intelligence, the Internet of Things, and augmented/virtual reality are changing how work is getting done across all industries and across the world.
Discrete and process manufacturing, the two largest spenders on Future of Work technology over the forecast period, are investing in key use cases like collaborative robotics, operational performance management, and 3D and digital product design and review for improved cost control and higher process efficiency.
Together, discrete and process manufacturing will account for just over one third of all Future of Work spending this year. Professional services, retail, and banking will be the next three industries in terms of FoW spend in 2021. The construction industry will see the fastest growth in FoW spending over the forecast period with a five-year CAGR of 23.7 percent. Media and retail will follow closely with CAGRs of 19.5 percent and 19.3 percent respectively.