28 Oct 2021
Digital Transformation Investments to Represent More Than Half of All ICT Investment by 2024, According to IDC FutureScape
Annual worldwide digital transformation report highlights ten key predictions to impact ICT investment priorities and implementation strategies
NEEDHAM, Mass., October 28, 2021 – As the top digital transformation (DX) market research firm in the world, International Data Corporation (IDC) today unveiled IDC FutureScape: Worldwide Digital Transformation 2022 Predictions (IDC #US47115521). Responding to the pandemic, organizations accelerated their investments in digital. This means that in 2022 more than half the global economy will be based on or influenced by digital. In fact, according to the new report, direct digital transformation investments will accelerate to a compound annual growth rate (CAGR) of 16.5% in 2022-2024, up from a 15.4% CAGR in 2019-2024, becoming 55% of all information and communications technology (ICT) investments by the end of 2024.
In today's FutureScape webinar, IDC analysts Shawn Fitzgerald and Bob Parker discussed the key predictions that will impact CIOs and IT professionals with regards to digital transformation over the next one to five years and offered guidance for managing the implications these predictions harbor for IT investment priorities and implementation strategies. To register for an on-demand replay of this webinar or any of the other IDC FutureScape webinars, please visit https://www.idc.com/events/futurescape.
- Click to Tweet : Join us for the #IDCFutureScape webinar, "IDC FutureScape: Worldwide Digital Transformation 2022 Predictions," now available on-demand, to unlock the top 10 predictions for IT professionals' IT investment priorities and implementation strategies. Register: https://bit.ly/2Zlhvnm
The predictions from the IDC FutureScape for Worldwide Digital Transformation are:
Prediction 1: Double Digit Investment Growth. Direct digital transformation investments accelerate to a 16.5% CAGR in 2022-2024, up from a 15.4% CAGR in 2019-2024, becoming 55% of all ICT investment by the end of 2024.
Prediction 2: Digital GDP Rules. Responding to the pandemic, organizations accelerated their investments in digital. This means that in 2022 more than half the global economy is based on or influenced by digital.
Prediction 3: Physically Architecting Digital. By 2023, 90% of organizations worldwide will prioritize investments in digital tools to augment physical spaces and assets with digital experiences.
Prediction 4: Automating Enterprises and Ecosystems. By 2025, 60% of organizations will capitalize on disruption with an enterprise- and ecosystem-wide approach to automation, leveraging model-based enterprise concepts, centers of excellence (COEs), and low-code/no-code platforms.
Prediction 5: Leadership for Digital Resiliency. By 2026, 54% of CIOs drive business transformation, empowering digitally resilient organizations via strategic technology roadmaps and re-platforming to enable an agile, data-driven, collaborative workforce.
Prediction 6: Digital Enculturation and Empowerment. Leveraging low-code/no-code tool and data utilization capability, the majority of employees at 60% of enterprises will lead transformation and embody digital resiliency at their roles by 2024.
Prediction 7: Digital Resiliency. By 2022, 55% of organizations will have expanded resiliency plans to future-proof their business, improving profitability, innovation rates, and cost efficiencies by more than 20% compared to their peers.
Prediction 8: Digital ROI and Outcomes. By 2023, 1 in 2 companies will generate more than 40% of their revenues from digital products and services, as compared to 1 in 3 in 2020.
Prediction 9: Digital Dream Teams. By 2025, companies with cross-functional leadership, a digital dream team, enjoy faster rates of innovation, higher market share gains, and greater operational efficiencies than their contemporaries.
Prediction 10: Decarbonization and digital. Decarbonization initiatives are a key goal of digital transformations; fewer than 10% of organizations say they are not applicable or not implementing objectives to reduce carbon by the end of 2023.
"Direct digital transformation (DX) investment growth rates are accelerating, up to a 16.5% CAGR for 2022-2024. This is an increase of one full percentage point from the 15.5% CAGR we saw for the 2020-2023 timeframe. 2022-2024 investment levels are expected to be $6.3 trillion and 55% of all ICT investment by the end of 2024. This is a $0.9 trillion increase from the 2020-2023 timeframe where we forecast direct investment at $5.4 trillion. For the first time ever, we see that the majority of enterprise organizations, at 53%, have an enterprise-wide digital transformation strategy, a 42% increase from just two years ago," said Shawn Fitzgerald, research director, Worldwide Digital Transformation Strategies at IDC.
For additional information about these predictions or to arrange a one-on-one briefing with Shawn Fitzgerald, please contact Sarah Murray at 781-378-2674 or firstname.lastname@example.org. Reports are available to qualified members of the media. For information on purchasing reports, contact email@example.com ; reporters should email firstname.lastname@example.org.
About IDC FutureScape
IDC FutureScape reports are used to shape IT strategy and planning for the enterprise by providing a basic framework for evaluating IT initiatives in terms of their value to business strategy now and in the foreseeable future. IDC's FutureScapes are comprised of a set of decision imperatives designed to identify a range of pending issues that CIOs and senior technology professionals will confront within the typical 3-year business planning cycle.
To learn more about the IDC FutureScape reports for 2022, please visit: https://www.idc.com/events/futurescape.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.
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