Digital transformation is giving IT spending a big boost

Digital transformation may promise critical benefits for the companies undertaking it, but it’s also delivering a major boost to IT spending around the world.

That’s according to market researcher IDC, which on Monday released new data indicating that global spending on IT products and services will grow from nearly $2.4 trillion in 2016 to more than $2.7 trillion in 2020. A big part of that growth, it says, will come from companies investing in cloud, mobility, and big data technologies as part of their digital transformation efforts. Such efforts are now particularly prominent in financial services and manufacturing.

Purchases on the consumer side accounted for nearly a quarter of all IT revenues in 2015, thanks largely to what IDC calls “the ongoing smartphone explosion,” but in general consumer spending on PCs, tablets, and smartphones has been waning. Even the modest growth forecast for the tablet market will be driven by commercial segments, it said.

“While the consumer and public sectors have dragged on overall IT spending so far in 2016, we see stronger momentum in other key industries including financial services and manufacturing,” said Stephen Minton, vice president of customer insights and analysis at IDC. “Enterprise investment in new project-based initiatives, including data analytics and collaborative applications, remains strong.”