Canada is set to cross $16 billion spending in digital transformation (DX) technologies and services including the IoT, artificial intelligence (AI), security, 3D printing, augmented/virtual reality (AR/VR), and robotics.
According to a research report by International Data Corporation (IDC), Canada, there is a 20% increase in spending as compared to the $14 billion spent in 2017, and the total expenditure on DX projects will increase up to $24 billion in 2021 with a compound annual growth rate of 29.8%, which was only $6.5 billion in 2016.
Jim Westcott, research manager, IDC Canada, said in a statement, “Canadian organizations are clearly moving quickly to adopt DX solutions and technologies in order to respond to marketplace challenges from competitors, customers, and employees.” Further, he added, “The proliferation of use cases across all industries is leading to a significant shift in preferences for DX solutions as the best option for long-term success.”
The IDC analyst also reported that the four columns of digital transformation – big data and analytics, cloud, mobile, and social – are also experiencing strong spending growth, which is increasing an average of 15.3% per year between 2016 and 2021, reaching $9.3 billion at the end of 2021.
Manufacturing industries become the top investor in the IoT sector
Smart manufacturing, digital supply chain optimization, and omni-experience engagement are the main DX strategic priorities in Canada.
Yash Ahuja, Senior Analyst of Measurement and Forecasting, IDC Canada, said, “Manufacturing companies are now harnessing technology to achieve cost, speed and quality efficiencies in their processes at scale,” Yash further added, “Over the next few years, the companies that cannot adapt to this new paradigm will find it hard to compete in the marketplace.”
According to IDC Canada, smart manufacturing will have close to $1.5 billion in estimated expenditure this year based on the growth of robotic manufacturing.
Manufacturing industries are investing nearly a quarter of investments in IoT devices and it is revolutionizing it through research and development. It was a top sector in IoT investments in 2016 and it is estimated by IDC that it will continue to be the top buyer of IoT devices by the year 2021.