NEW DELHI: In 2022, global investment in digital transformation (DX) of corporate methods, products, and organisations is expected to hit USD1.8 trillion, up 17.6% from 2021. Back office support and infrastructure, smart manufacturing, and digital supply chain optimization are among the DX goals that will receive the most funding in 2022.
According to the International Data Corporation (IDC), these three investment categories will account for more than USD620 billion in DX spending this year. DX spending will continue to expand at this rate between 2022 and 2026, with a five-year compound annual growth rate (CAGR) of 16.6%, according to the report.
"As companies pursue a digital-first approach, they're putting money into both internal processes and direct connection with customers," said Craig Simpson, senior research manager, Customer Insights & Analysis at IDC.
According to the IDC, the discrete and process manufacturing industries will account for about 30% of global DX spending this year, followed by the professional services and retail industries. This year, DX will invest more than USD100 million in the utilities and banking industries.
Meanwhile, the financial services industry will have the fastest DX spending increase between 2022 and 2026, with CAGRs of 19% or more expected in the securities and investment services, insurance, and banking industries, according to the report.