Global spending on digital transformation (DX) technologies is expected to cross $2.1 billion by 2019 as companies look at making better use of information related to customers, markets and products, according to research firm IDC.
The spending is forecast to grow at a compound annual growth rate (CAGR) of 16.8 per cent over the 2014-2019 forecast period, IDC said in a statement.
Spending on DX technologies in the U.S. will follow a similar trajectory, reaching nearly $732 million in 2019, it added.
“Enterprises are forecast to invest the most (nearly half the worldwide total in 2019) on DX technologies that support operating model innovations,” the report said.
These investments will focus on making business operations more responsive and effective by leveraging digitally-connected products/services, assets, people and trading partners, it added.
Information is not only used to inform better decisions and optimise operations and products, but is also monetised in the form of products and services, it said.
“Digital transformation is not just a technology trend, it is at the centre of business strategies across all industry segments and markets,” IDC Group Vice President Robert Parker said.
The vertical industries with the largest DX spending worldwide in 2015 were discrete manufacturing at $224.7 million, followed by process manufacturing and transportation.
The retail industry is forecast to have the fastest growing DX spending worldwide with a five—year CAGR of more than 21 per cent.
Healthcare providers, resource industries, telecom and healthcare will also invest in DX.