According to data presented by Augusta Free Press, global digital transformation spending hit US$1.85 trillion in 2022, or 16% more than a year ago.

It is because companies and organizations worldwide continue spending heavily on digital transformation, driving the value of the entire market to new record valuations.

Total spending to jump over US$2 trillion next year

Augusta Free Press stated that using AI technology, moving data to the cloud, and implementing automated processes or tech gadgets for communication make companies more agile in responding to changing markets and more resilient.

The digital transformation many companies underwent in 2020 continued in 2021 and 2022 at a rapid pace as the pandemic continued to impact the world. COVID-19 forced them to speed up the change and increase digital transformation budgets, which have continued growing ever since.

IDC and Statista data show that global digital transformation spending amounted to US$1.18 trillion in 2019. A year later, it jumped by 11% to US$1.31 trillion. Statistics show companies and organizations worldwide spent nearly US$1.6 trillion on digital transformation last year or 21% more than in 2020.

Although spending growth slowed to 16% in 2022, companies and organizations still spent US$260 billion more on digitalization than last year.

IDC expects digital transformation spending to continue growing and jump over US$2 trillion next year. By 2026, this figure is projected to increase by a massive 57% and hit US$3.4 trillion worldwide.

Digitalization a top priority for 80% of companies worldwide

The main goal of digital transformation is to improve performance, create new revenue streams, drive growth and create a better customer experience. But many companies also consider it a top priority for their tech status.

According to the 2022 Global Tech Trends Survey, 84% of respondents from the AMER (North, Central, and South America) region stated their company considered digitalization a top priority for their tech status. Asia-Pacific had the second-highest share of respondents that claimed the same, 82%, according to the survey. The EMEA region followed with 76%, respectively.

Overall, 80% of respondents worldwide said their company prioritized their business’ digitalization in 2022.