Global spend on business digital transformation practices, products and organisations will increase by 16.8% by the end of 2018 from 2017 levels, according to the International Data Corporation (IDC).
The IoT market intelligence firm forecasts spending on technologies and services enabling digital transformation, to increase from $958 billion in 2017 to $1.1 trillion in 2018.
Sectors the firm predicts will receive the most funding include digital supply chain and logistics automation, smart asset management, predictive grid and manufacturing operations.
Programmes expected to record the most spending growth over the next five years are the connected automated vehicles segment and construction operations.
However, the innovation acceleration, omni-channel commerce and omni-experience engagement are expected to receive significant funding this year.
From a technology perspective, the largest categories of spending will be applications, connectivity services, and IT services as companies build out their digital platforms to compete in the digital economy. Read more: Blockchain in the energy landscape
Craig Simpson, research manager at IDC's Customer Insights and Analysis Group, said: "Some of the strategic priority areas with lower levels of spending this year include building cognitive capabilities, data-driven services and benefits, operationalising data and information, and digital trust and stewardship.
"This suggests that many organisations are still in the early stages of their DX journey, internally focused on improving existing processes and efficiency. As they move into the later stages of development, we expect to see these priorities and spending, shift toward the use of digital information to further improve operations and to create new products and services."
To achieve its DX strategic priorities, IDC recommends businesses develop programmes that represent a long-term plan of action towards these goals.
IDC's Worldwide Semiannual Digital Transformation Spending Guide analyses 130 DX use cases across 19 industries in eight geographic regions.
This article appeared on our sister publication's website, Metering & Smart Energy International (www.metering.com).