Global spending on digital transformation (DX) of business practices, products and organizations is expected to reach USD 1.8 trillion in 2022, a 17.6% increase from 2021.

The DX priorities that will see the biggest investment in 2022 include back-office support and infrastructure, smart manufacturing, and digital supply chain optimization.

Together, these three areas of investment will account for more than $620 billion in DX spending this year, according to the International Data Corporation (IDC).

DX spending will maintain this pace of growth over the forecast period 2022-2026 with a five-year compound annual growth rate (CAGR) of 16.6%, he added.

“As organizations accelerate their pursuit of a digital-first strategy, they are channeling these investments into both internal operations and external direct engagement,” said Craig Simpson, senior director of research, Customer Insights & Analytics at IDC.

From an industry perspective, discrete and process manufacturing industries will account for nearly 30% of global DX spending this year, followed by professional services and retail industries, the IDC said.

The utilities and banking sectors will also see DX spending of over $100 million this year.

Meanwhile, the financial services sector will register the fastest DX spending growth over the forecast period 2022-2026, with the securities and investment services, insurance and banking sectors leading the way. all have a five-year CAGR of 19% or more, according to the report. .