Global digital transformation spending to reach $1.8 trillion this year

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SME Times News Bureau | 14 May, 2022
Global spending on the digital transformation (DX) of business practices, products and organisations is forecast to reach $1.8 trillion in 2022, an increase of 17.6 per cent over 2021.

The DX priorities that will see the largest investment in 2022 include back office support and infrastructure, smart manufacturing, and digital supply chain optimisation.

Together, these three investment areas will represent more than $620 billion in DX spending this year, according to the International Data Corporation (IDC).

DX spending will sustain this pace of growth over the 2022-2026 forecast period with a five-year compound annual growth rate (CAGR) of 16.6 per cent, it added.

"As organisations accelerate their pursuit of a digital-first strategy, they are channeling these investments into both internal operations and external direct engagement," said Craig Simpson, senior research manager, Customer Insights & Analysis at IDC.

From an industry perspective, the discrete and process manufacturing industries will account for nearly 30 per cent of worldwide DX spending this year, followed by the professional services and retail industries, said the IDC.

The utilities and banking industries will also see DX spending of more than $100 million this year.

Meanwhile, the financial services sector will deliver the fastest DX spending growth over the 2022-2026 forecast period, with the securities and investment services, insurance, and banking industries all forecast to have five-year CAGRs of 19 per cent or more, the report noted.