Skip to main content

Innovation Acceleration Technologies Drive IT Spending

Successful vendors enable business and IT decision makers to better understand the scope and direction of their investments for digital transformation. It's a global phenomenon, where those savvy vendors with a client-centered view of how to quickly achieve commercial outcomes will gain the most market share.

European spending on information technologies and services that enable the digital transformation (DX) of business practices, products, and organizations is forecast to reach $378.2 billion in 2022, according to the latest worldwide market study by International Data Corporation (IDC).

Digital Transformation Market Development

Within Europe, DX spending is expected to steadily expand throughout the 2017-2022 forecast period, achieving a five-year compound annual growth rate (CAGR) of 15.1 percent.

Europe is the third largest geography for DX spending, after the United States and China. Four industries will be responsible for nearly 44 percent of the $256 billion in European DX spending in 2019 -- discrete manufacturing ($39 billion), process manufacturing ($25 billion), retail ($26 billion), and utilities ($23 billion).

For the European manufacturing sector, IDC expects the industry to invest more than $27.6 billion in smart manufacturing next year along with significant investments in digital innovation ($8.8 billion) and digital supply chain optimization ($5.5 billion).

In the retail space, the leading strategic priority is omni-channel commerce, which translates to nearly $5 billion in spending for related platforms and order orchestration and fulfillment.

Meanwhile, the top priority for the utility industry is the digital grid, which will drive investments of more than $13.6 billion in intelligent and predictive grid management and digital grid simulation.

IDC says the largest investments in DX use cases across all industries in 2019 will be freight management ($11 billion), autonomic operations ($7 billion), robotic manufacturing ($8 billion), and intelligent and predictive grid management ($12 billion).

"European manufacturing companies are increasingly adopting innovation accelerator technologies," said Neli Vacheva, senior analyst at IDC. "The sector is introducing innovation-enabled production processes, advanced asset and inventory management, and new sales models based on IoT, robotization, artificial intelligence, machine learning, and 3D printing."

Outlook for DX Infrastructure Investment in Europe

From a technology perspective, hardware and services will account for more than 78 percent of all DX spending in 2019. Services spending will be led by IT services ($43 billion) and connectivity services ($25 billion), while business services will post the highest growth (19.8 percent CAGR) over the five-year forecast period.

Hardware spending will be spread across several categories, including enterprise hardware, personal devices, and IaaS infrastructure. DX-related software spending will total $55 billion in 2019 and will be the fastest-growing technology category with a CAGR of 18.1 percent, according to the IDC assessment.

Popular posts from this blog

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of