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Digital transformation spend to top $2 trillion by 2023

(Image credit: Image Credit: Bluebay / Shutterstock)

Businesses across the world are increasing their spending on digital transformation (DX) initiatives, new figures have claimed. 

According to a new report by IDC, businesses will spend $2.3 trillion a year on digital transformation within the next four years, with worldwide DX technology investment set to hit at least $7.4 trillion over the next four years, it was added.

The Worldwide Semiannual Digital Transformation Spending Guide argues that the spending on digital transformation initiatives will “steadily expand” within the next four years, achieving a five-year compound annual growth rate of 17.1 per cent.

Things are going to be even more interesting in 2023, the report says, as digital transformation spending will amount to 53 per cent of all worldwide technology investment for the year.

Retail and professional services, as part of the distribution and services sector, will be the one to grow most during this time. It will have a compound annual growth rate of 18 per cent. Most money will be spent in discrete and process manufacturing, amounting up to 30 per cent of the worldwide total.

However, IDC’s analysts believe businesses still have much to learn.

"In the current competitive business world, digital transformation is the topmost strategic priority for every organisation. Nevertheless, the concept is confusing and intricate. Digital transformation involves managing the existing business and building for the future at the same time, something like changing the engine of the plane while in flight," said Ashutosh Bisht, senior research manager for IDC’s Customer Insights & Analysis Group.

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