Global spending on digital transformation (DX) is forecast to reach $3.4 trillion in 2026 by IDC, with a five-year compound annual growth rate (CAGR) of 16.3%. The firm says that, despite the prospect of recession, forward-looking organisations are looking to invest to create new sources of value through digital products, services, and experiences and become more resilient to disruption.
► DX benefits including automation and improved customer experience make it worth investing
► Making, building, designing use-cases will be biggest area of spending
Craig Simpson, senior research manager with IDC's Data & Analytics Group, said. ‘Despite strong headwinds from global supply chain constraints, soaring inflation, political uncertainty, and an impending recession, investment in digital transformation is expected to remain robust. The benefits of investing in DX technology, including automation, strong intelligence, operational transparency, and direct support around customer experience, all support targeted areas of business focus to weather the current environment of uncertainty and to make the most of any opportunities in the recovery.’
The DX use case that will see the largest investments over the forecast period is ‘Innovate, Scale, and Operate’ – a broad area covering large-scale operations, including making, building, and designing activities. This will account for more than 20% of all spending. Other big areas include ‘Back-Office Support and Infrastructure’ (15%+) and ‘Customer Experience’ (8%+). The fastest growing among the more than 300 DX use cases identified by IDC include ‘Digital Twins’ and ‘Robotic Process Automation-Based Claims Processing’ with five-year CAGRs of 35% and 31% respectively.
