Manufacturing to account for over a third of 2018 digital transformation spending

Source: IDC. Top use cases for manufacturing through to 2021. The first line for the legend refers to "Robotic Process Automation-Based Claims Processing".

The IDC Worldwide Semiannual Digital Transformation (DX) Spending Guide - Use Case Forecast for Asia Pacific excluding Japan (APeJ) reveals that the manufacturing industry will have a major share of digital transformation (DX) spending in 2018, representing around 35% (US$135.3 billion) of the overall spending on DX solutions this year. Smart manufacturing (US$79.9 billion) and digital supply chain optimisation (US$42.2 billion) are the DX strategic priorities where enterprises will spend most in 2018, the consultancy said.

Overall, the technologies and services enabling future-proof digital transformation (DX) in business operations, methods and solutions is expected to be more than US$386 billion in 2018, a double-digit increase of 15.3% against US$334.8 billion spent in 2017.

From a technology perspective, connectivity services, applications and enterprise hardware are the leading technology categories contributing to DX spending, as enterprises build out their digital platforms to compete in the digital economy.

"Digital transformation is gathering pace in the APeJ region. Stiff competition from early adopters are driving others to begin transformational efforts," said Ashutosh Bisht, Senior Research Manager, IDC Asia/Pacific. "Innovation accelerators are the major catalyst towards DX transformation; leaders in the DX space are prioritising artificial intelligence (AI), cognitive and robotics to achieve their business goals."

Bisht added that IoT implementations were an emphasis for DX.

Innovation acceleration and omnichannel commerce are the other strategic priorities that will see significant impetus this year. Over the forecast period of 2016 to 2021, rapid growth will come from financial and clinical risk management (CAGR of 39.7%), as well as smart construction 35% CAGR.

Smart asset management, digital supply chain and logistics automation and manufacturing operations are the three largest DX programmes in 2018. The programmes that IDC expects to witness the highest growth over the five-year forecast period include construction operations (40.7% CAGR) followed by clinical outcomes management (37.5% CAGR) and cyberthreat detection and prevention (36.5% CAGR).