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The Global Digital Transformation Expenditure to Shoot up to $2.3tn by 2023

By Debjani Chaudhury - November 04, 2019 3 Mins Read

The Global Digital Transformation Expenditure to Shoot up to _2.3tn by 2023

Digital transformation technologies and services are expected to account for more than 50% of all information and communications technology (ICT) expenditure by 2023, according to IDC.

IDC has confirmed that by 2023, global digital spending is expected to reach up to $2.3 trillion. Global digital ad spending is expected to achieve a 5-year compound annual growth rate of 17.1% by capturing 53% of worldwide technology investment.

It is the first time that the DX technology spending has represented the majority share of total worldwide ICT investment as per the forecast. This can be termed a significant milestone in the digital transformation journey and reflective of the more substantial commitment to enterprise-wide digital transformation. IDC also added that the worldwide DX technology investments would total more than $7.4 trillion over the coming four years.

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Industries have achieved different levels of maturity to date, as they pursue their DX objectives. The financial services sector will witness the fastest overall growth, with the insurance, banking, security, and investment services industries delivering CAGRs of above 19% over the forecast period. The services and distribution sector, which includes industries like professional and retail services, will also outpace the overall market with an 18% CAGR. The public sector spending growth is expected to match the overall market at 17.1%.

Process and discrete manufacturing are expected to spend the most on the digital transformation between 2019 and 2023, accounting for about 30% of the total worldwide. Leading digital transformation uses in these industries include robotic manufacturing, automatic operations, and root cause.

Retail is set to be the third-largest industry for digital transformation spending, focusing on order orchestration, Omnichannel commerce platforms, and fulfillment. IDC expects transportation and professional services to trail close behind retail in terms of the overall DX spending — with the significant use cases being intelligent freight management and building energy management. Of the 219 digital transformation use cases identified, IDC believes robotic manufacturing investments will double by 2023 to become the most significant use case over autonomic operations. Freight management will become the third-largest use case, followed by root cause, self-healing assets, and automated maintenance, and 360° customer management.

Enterprises across the Asia Pacific are adopting emerging technologies to enhance their operational excellence to connect more efficiently with their customers.

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IDC forecasts the U.S. will be the largest geographic market for digital transformation spending, delivering around one-third of the global total throughout 2019–2023, with China, expected to replace Western Europe as number two. Fastest spending growth will come from virtualized labs 109.5% CAGR, digital visualization 49.9%, and mining operations assistance 41.6% CAGR. In the current transformation competitive business world, digital transformation is the most strategic priority for every organization.

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Debjani Chaudhury

Debjani Chaudhury works as an Associate Editor with OnDot Media. In this capacity, she contributes editorial articles for two platforms, focusing on the latest global technology and trends.Debjani is a seasoned Content Developer who comes with 3 years of experience with Fashion, IT, and International Marketing industries. She has represented India in International trade forums like Hannover Messe, Germany.

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