International Data Corporation (IDC) has conducted a latest market study which forecasted an amount of $1.97 trillion which the companies in 2022 will be spending for digital transformation (DX) of organizations, products and business practices, towards services and technologies.
For their digital policies, diversified new technologies have been set up by CTOs and CIOs across the globe. In organizations a hybrid IT infrastructure has become practice by operating public cloud services and on-premises systems side by side creating a basis for growing suite of digital business processes and associated software applications.
Compound annual growth rate, with throughout steady expansion, has been expected to reach 16.7 percent during five year period of 2017 through 2022.
By 2020, to boost their strategies of digital transformation, an allocation of 10 percent of their revenue as capital budget has been expected by one third of the G2000 companies, as predicted by IDC.
Digital transformation has been acknowledged by Business executive as long-term investment, driving them to allocate capital funding for it, which is likely to be continuing for next 10 years.
In 2019 roughly 50 percent of the $1.25 trillion will be spent by four types of industries worldwide. Largest is the amount of $220 billion which Discrete manufacturing industries will be spending in 2019 for their digital transformation, whereas it will be $135 billion for Process manufacturing industries. Transportation industries come next with their expected spending of $116 billion and Retail industries are the last among the four types which, upon their digital transformation, will be spending $98 billion in 2019.
Smart manufacturing is the top most priority of Process manufacturing and Discrete industries while spending for DX as both industries are likely to be investing in smart manufacturing an amount of more than $167 billion. In addition to smart manufacturing, these companies are also being investing in supply chain optimization and digital innovation.