Is digital transformation real? You’d better believe it.
This is no mere marketing buzzword. Worldwide spending on tech and services related to digital transformation (DX) is expected to grow on average by 16% a year through 2022, according to a new report from IDC.
By 2022, the market watcher expects, total DX spending worldwide will reach nearly $2 trillion. (Yes, that’s trillion with a T.)
What’s more, new technologies are coming to market to support DX at what IDC research manager Craig Simpson describes as “unprecedented speed” — a rate he says “can only be described as frantic.”
“Areas regarded as pilot projects just a year ago,” Simpson adds, “have already become mature operations in some industries.”
Here’s more of what IDC now expects from what can only be called the digital-transformation revolution:
> By 2020, 30% of large companies will have allocated the equivalent of at least 10% of their annual revenue to fuel their digital strategies.
> Next year, just 4 industries will account for nearly half of all digital-transformation spending worldwide: discrete manufacturing, process manufacturing, transportation and retail. A fifth industry, utilities, will be close behind.
> Also next year, just 2 countries will account for more than half the total worldwide DX spend: China and the United States.
> Top use cases for digital transformation? Those would be freight management; autonomic operations; robotic manufacturing; and grid management for electricity, gas and electric.
> Driving technologies behind the rise of DX now include the Internet of Things and cognitive computing.
> Different subsectors of DX spending will grow at different rates. For example, business services related to DX are forecast to grow on average by 29% a year through 2022. But software sales, by “only” 19%.
Are you looking for a multi-trillion-dollar tech market that’s growing by double digits? Look into digital transformation. This revolution is real.