The latest IDC research report has revealed who will be making investment in digital transformation projects this year.
Spending on digital transformation projects will increase 17.9 percent to reach $1.18 trillion in 2019.
Worldwide digital transformation technology investments are expected to total more than $6 trillion over the next four years.
“Strong DX technology investment growth is forecast across all sectors, ranging between 15 percent and 20 percent, with the financial sector forecast to be the fastest with a compound annual growth rate (CAGR) of 20.4 percent between 2017 and 2022,” Eileen Smith, program vice president with IDC’s Customer Insights & Analysis group, said.
Discrete manufacturing will be spending $221.6 billion in digital transformation projects in 2019.
Process manufacturing will be spending $124.5 billion in digital transformation projects in 2019.
Discrete manufacturing and process manufacturing industries will give top priority for smart manufacturing, autonomic operations, manufacturing operations, and quality as part of their digital transformation projects.
Retail will be the next largest industry in terms of their spending in digital transformation projects – focusing more on omni-channel commerce.
Transportation – focusing on digital supply chain optimization — and professional services – targeting transforming workspace in professional services — will be in the next position in terms of spending in digital transformation projects.
Several industries will be spending $52 billion on autonomic operations, $45 billion on robotic manufacturing, $41 billion on freight management, and 35 billion on root cause as part of the digital transformation use cases.
Industries will be spending $20 billion plus each in 2019 in self-healing assets and augmented maintenance, intelligent and predictive grid management for electricity, and quality and compliance.
“It is clear that the businesses which have invested in DX over the last 2-3 years are already reaping the rewards in terms of faster revenue growth and stronger net profits,” said Craig Simpson, research manager with IDC’s Customer Insights & Analysis group.
United States-based discrete manufacturing companies will be spending $63 billion towards digital transformation.
US-based professional services companies will be spending $37 billion towards digital transformation.
US-based transportation companies will be spending 34 billion for digital transformation goals.
China-based discrete manufacturing companies will be spending $55 billion in digital transformation projects.
China-based process manufacturing companies will be spending $31 billion towards digital transformation projects.
China’s and state / local government will be spending $21 billion towards digital transformation projects.