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RESEARCH, ANALYSIS & TRENDS

The pace of digital transformation

accelerated in the Asia Pacific region

According to the IDC Worldwide Semiannual Digital is Smart Manufacturing followed by Digital Supply
Transformation Spending Guide, Asia Pacific spending Chain Optimization. Smart Manufacturing is supported
on the technologies and services that enable the digital by significant investments in autonomic operations,
transformation (DX) of business practices, products, and manufacturing operations, and quality. Government will
organizations is estimated to be $375.8 Billion in 2019. be the next largest industry in 2019, followed closely by
Transportation and Utilities. Each of these industries
In fact, DX spending is expected to steadily expand will be pursuing a different mix of strategic priorities
throughout the 2017-2022 forecast period, achieving a from convenient access to healthcare for the
five-year compound annual growth rate of 17.4%, IDC government industry; digital supply chain optimization
claims. in the transportation industry; and digital grid in utilities
industry.
“The adoption of emerging technologies supporting DX
strategies in Asia Pacific is shaping up as its helping to The DX use cases that will see the largest investment
reimagine their businesses, re-evaluate their value across all industries in 2019 will be Autonomic
chain, reconnect with their customers, and rebuild their Operations ($25.5 billion), Robotic Manufacturing
organization into a digital native enterprise,” said ($25.2 billion), Root Cause ($16.5 billion), and Freight
Ashutosh Bisht, Senior Research Manager for IDC’s Management ($13.8 billion). The use cases that will
Customer Insights & Analysis group. “Government and experience the greatest spending growth over the 2017
enterprises in the region are understanding the value of – 2022 forecast period are Virtualized Labs (132%
what these new technologies bring to operational CAGR), Site Survey- Damage, Risk and Value
activities. It also harnesses the potential of a lot of Assessment (78.5% CAGR), and Mining Operations
initiatives being launched to make the workforce well Assistance (65.9% CAGR).
versed. Upskilling and future-proofing the workforce are
on top of employers and the government’s agenda,” From a technology perspective, hardware and services
Bisht added. investments will account for more than 83.6% of all DX
spending in 2019. Services spending will be led by
The two industries that will invest the most in digital Connectivity Services ($44.2 billion) and IT Services
transformation in 2019 are discrete manufacturing ($83.9 ($17.6 billion). Hardware spending will be spread
billion) and process manufacturing ($46.8 billion), IDC across several categories, including enterprise
reveals. For both industries, the top DX spending priority hardware, personal devices, and IaaS infrastructure.

14 June 2019 - Cyber-security & Data Protection