Despite the challenges of global supply chain constraints, rising inflation, political uncertainty, and a looming recession, investments in the technologies required for digital transformation (DX) will continue to grow rapidly in the coming years, IDC analysts predict.
Thus, in the next five years, global spending on digital transformation will grow by 16,3% per year and reach 3,4$ trillion dollars in 2026.
Between different models of digital transformation, the biggest investments will be involved in the model called Innovate, Scale, Operate. This model covers large operations concerning manufacturing, construction, and development. Among other main business functions concerning this model, there is the management of the global supply chain, deployment of business projects, studies and development, operational activity, and work of production units. Analysts expect that this direction will account for more than 20% of the global DX-investment volume.
The next large group of processes covers the support and infrastructure of back offices – IT teams, accounting departments, personnel departments, warehouses, etc. More than 15% of all costs for digital transformation will go to this area. More than 8% of DX expenses will be related to customer service.
Among the more than 300 applications for DX technologies, the highest growth rates of 35.2% and 31% are expected for scenarios such as digital twins and robotic claims processing based on process automation.
Almost another 30% of global DX investments will be in discrete and continuous manufacturing industries, where robotic manufacturing, autonomous operations, self-healing assets, and augmented maintenance (using AR and VR technologies) will be the leading application options.
A significant contribution is also expected from the sphere of professional services and retail trade, and the top three in terms of growth rates of DX-expenses will include the industry of securities and investment services (CAGR 20.6%), the banking sector (19.4%) and health care (19.3%).
According to forecasts, the world leader in spending on digital transformation will be the USA, which will account for almost 35% of the total volume of DX investments, and in 2025 the country will spend more than $1 trillion for these purposes.