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Digital transformation, innovation spending to see robust growth in META

Digital transformation, innovation spending to see robust growth in META
Government enterprise IT spending is forecast to record a CAGR of 5.7%

Dubai – Mubasher: Investments in digital transformation and innovation are expected to make up 30% of total information technology (IT) spending in the Middle East, Turkey, and Africa (META) by 2024, compared to only 18% in 2018, according to a report released by the International Data Corporation (IDC) on Thursday.

Spending on these two fields will likely increase at a compound annual growth rate (CAGR) of 18%, compared to 1.5% for the rest of the IT sector, the company’s group vice president and regional managing director, Jyoti Lalchandani, revealed at IDC Directions 2020.

In addition, government enterprise IT spending is forecast to record a CAGR of 5.7% to total $8 billion in 2021.

Manufacturing will represent 23% or $6 billion of all digital transformation spending in 2020.

Moreover, annual security spending is expected to reach $3.6 billion by 2023 with the emergence of digital trust as a priority.

Artificial intelligence (AI) spending is projected to record $600 million in 2023, doubling from the value in 2018.

Furthermore, spending on internet of things (IoT) is seen to increase six times the value in 2018 to reach $17 billion in 2023.

"In just a few short years, IDC forecasts that nearly half of all GDP worldwide will come from products and services offered by digitally transformed organisations,” IDC's chief research officer, Meredith Whalen, remarked.

"Analysts continue to predict that ICT investment in the region will rise and the appetite for future growth is promising. As such, investment insight is crucial to ensure the 1,600+ start-ups, entrepreneurs, and Fortune 500 companies based in Dubai Internet City continue to leverage growth opportunities, and we are working closely with our partners at IDC to make this happen," Dubai Internet City’s managing director, Ammar Al Malik, noted.