Banking, financial services and insurance (BFSI) holds a 25.06% share of the 2026 digital transformation market in Fortune Business Insights’ estimate. IDC’s 2023 and 2024 spending guide releases rank discrete manufacturing first on a different measure.
This breakdown of digital transformation spending by industry sets both measures side by side, then covers sector growth rates, AI’s share of DX software budgets, regional and country figures, and 2026 vendor moves.
Digital Transformation Spending by Industry
Which Industries Spend the Most on Digital Transformation?
BFSI holds the largest share of the 2026 digital transformation market at 25.06%, based on Fortune Business Insights’ October 2026 update. Fortune measures market revenue across eight industry segments, from BFSI and manufacturing to government.
Source: Fortune Business Insights, Digital Transformation Market report, October 2026 update (2026 estimate)
Market-revenue estimates from other firms, gathered in these digital transformation market statistics, each apply their own scope.
IDC tracks organizational spending instead, and its ranking differs. Discrete manufacturing is the largest industry in IDC’s May 2024 update, at almost half a trillion dollars in 2024 and more than $700 billion projected for 2027.
Its November 2023 edition put discrete manufacturing at about 18% of all DX investment worldwide. Close to 30% came from discrete and process manufacturing combined in the October 2022 edition, so that figure does not line up with the single-industry share.
| IDC release | Largest industry for DX spending | Next largest industries |
|---|---|---|
| October 2022 (V2 2022) | Discrete and process manufacturing (combined) | Professional services, retail |
| November 2023 (V2 2023) | Discrete manufacturing | Professional services, process manufacturing |
| May 2024 (V1 2024) | Discrete manufacturing | Not named in release |
Source: IDC Worldwide Digital Transformation Spending Guide press releases, October 2022, November 2023 and May 2024
Financial Services Leads Digital Transformation Spending Growth in IDC Data
Fortune Business Insights’ October 2026 update expects healthcare to post the highest CAGR among its industry segments over 2026-2034. IDC’s growth figures favor financial services.
Source: Fortune Business Insights, Digital Transformation Market report, October 2026 update (2026-2034 forecast)
IDC’s January 2025 EMEA forecast, built on its October 2024 guide, names financial services as the industry with the highest CAGR in that region for 2024-2028. The May 2024 global update put financial services at a 20.5% five-year CAGR.
Source: IDC, EMEA Digital Transformation Market Forecast, 2024-2028 (January 2025); IDC Worldwide Digital Transformation Spending Guide V1 2024 (May 2024, 2022-2027 forecast)
Within the sector, IDC’s November 2023 edition ranked securities and investment services first.
| Industry | Five-year DX spending CAGR |
|---|---|
| Securities and investment services | 21.1% |
| Banking | 20.0% |
| Insurance | 19.2% |
Source: IDC Worldwide Digital Transformation Spending Guide V2 2023, November 2023 (five-year forecast to 2027)
Fastest-Growing Financial Use Cases
Three financial use cases grew well above average in the May 2024 update: RPA-based claims processing at 35.1%, real-time financial advice at 29.5% and digital banking experience at 29.3%.
Source: IDC Worldwide Digital Transformation Spending Guide V1 2024, May 2024 (five-year CAGRs)
Older editions show how the ranks shift. In October 2022, IDC had securities and investment services at 20.6%, banking at 19.4% and healthcare providers at 19.3%.
Source: IDC Worldwide Digital Transformation Spending Guide V2 2022, October 2022 (five-year forecast to 2026)
Digital Transformation Spending by Industry and AI Share, 2026-2029
Software is the fastest-growing technology group in IDC’s V1 2026 guide, at a 21.7% CAGR. Hardware follows at 19.8% and services at 10.6%.
DX software spending is on pace for $640 billion by 2029. Its share of total DX spending rises from 32% in 2026 to 36% in 2029.
AI is projected to account for about 40% of worldwide DX software investment by 2029.
Source: IDC Worldwide Digital Transformation Spending Guide V1 2026, analysis published July 1, 2026 (2026-2029 forecast)
Vendor revenue in that software layer is tracked separately in this software as a service market breakdown.
Sector Positions in IDC’s July 2026 Analysis
IDC’s V1 2026 guide tracks six sectors and 27 industries. Its July 2026 analysis profiled three of them in detail.
| Sector | Position in IDC’s V1 2026 data | Top DX priority named by IDC |
|---|---|---|
| Retail and Services | Leads all six sectors in total DX software spend; AI projected at 42% of its DX software spend by 2029 | Customer management |
| Financial Services | Highest existing AI share of any sector | Security: cyber threat detection and fraud prevention |
| Manufacturing and Resources | Lowest current AI share of any sector | Autonomic operations |
Source: IDC, DX Software in Transition: AI Investment Trends by Sector, July 1, 2026 (V1 2026 guide)
An earlier IDC post, from May 2025, put AI-related investment at 17% of total DX spending. Hardware took about 40% of DX budgets in the same post.
Source: IDC, Navigating Digital Transformation Amid Economic Uncertainty, May 27, 2025
How Big Is Total Digital Transformation Spending?
IDC’s May 2025 post projects DX investment of almost $4 trillion by 2028, about 70% of total ICT spending. Each spending guide edition replaces the one before it.
The $3.4 trillion figure for 2026 dates from October 2022. IDC’s May 2024 release said DX could reach or pass two-thirds of all ICT spending by 2027.
| IDC release | Headline DX spending projection | Growth rate stated |
|---|---|---|
| October 2022 (V2 2022) | $3.4 trillion in 2026 | 16.3% five-year CAGR |
| November 2023 (V2 2023) | Close to $3.9 trillion in 2027 | 16.1% five-year CAGR |
| May 2024 (V1 2024) | Almost $4 trillion in 2027 | 16.2% CAGR, 2022-2027 |
| May 2025 (IDC blog) | Almost $4 trillion by 2028 | Not stated |
Source: IDC press releases (October 2022, November 2023, May 2024) and IDC blog post (May 27, 2025)
Fortune Business Insights sizes market revenue, not spending. It values the market at USD 2,632.49 billion in 2025 and USD 3,140.86 billion in 2026, with a 21.40% CAGR to USD 14,847.91 billion by 2034.
Source: Fortune Business Insights, Digital Transformation Market report, October 2026 update (2025 base year, 2026-2034 forecast)
Digital Transformation Market Size by Region and Country
North America held 39.80% of the digital transformation market in 2025, per Fortune Business Insights. Europe followed at 24.10%, Asia Pacific at 22.50% and Middle East & Africa at 8.30%.
Fortune says Asia Pacific records the highest growth rate among regions.
Source: Fortune Business Insights, Digital Transformation Market report, October 2026 update (2025 values, 2026 projections)
Regional cloud revenue, a related series, is split out in these cloud computing industry statistics.
IDC’s spending split reads differently. Its January 2025 forecast puts EMEA DX spending at $1,201 billion by 2028, a 15.8% CAGR over 2024-2028.
The May 2024 update named Latin America (17.9%) and China (17.4%) as the fastest-growing regions. In 2023, the United States took 35.8% of worldwide DX spending, Asia/Pacific including Japan and China 33.5%, and EMEA 26.8%, per the November 2023 edition.
Source: IDC EMEA Digital Transformation Market Forecast (January 2025); IDC Spending Guide V1 2024 (May 2024); IDC Spending Guide V2 2023 (November 2023)
Country Markets in 2026
Germany is the largest European market in this list, and India is the smallest of the six. Fortune projects the U.S. market at USD 2.39 trillion by 2032.
| Country | 2026 market size (USD billion) |
|---|---|
| United States | 532.49 |
| China | 192.75 |
| Germany | 132.09 |
| Japan | 109.67 |
| United Kingdom | 109.39 |
| India | 67.63 |
Source: Fortune Business Insights, Digital Transformation Market report, October 2026 update (2026 projections)
IoT Projected at 33.59% of the 2026 Market
IoT is projected at 33.59% of the 2026 digital transformation market in Fortune Business Insights’ technology split. Large enterprises are expected to hold 72.73%.
AI, another of Fortune’s seven technology segments, is sized on its own in this artificial intelligence market report.
Fortune expects blockchain and business intelligence to post the highest technology CAGRs, and cloud the highest by deployment. Its public summary does not publish those rates.
Source: Fortune Business Insights, Digital Transformation Market report, October 2026 update (2026 shares, 2026-2034 forecast)
Vendor Moves Tied to Industry Digital Transformation Budgets in 2026
Accenture agreed on June 17, 2026 to acquire Industries eXcellence Group (IndX), a Siemens Digital Industries partner. The deal targets software, data and AI services for manufacturers.
IBM and Google Cloud announced a new Google Cloud Practice on June 4, 2026. IBM is building industry AI agents for banking, government, retail, telecommunications, energy, security, insurance and life sciences.
SAP launched its SAP Business AI Platform at SAP Sapphire on May 12, 2026. Its Autonomous Suite adds more than 200 agents and over 50 assistants, due in the coming months.
All three are announcements or launches. None of the releases reports spending outcomes.
Source: Accenture newsroom (June 17, 2026); IBM and Google Cloud joint release (June 4, 2026); SAP News (May 2026)
FAQs
Which industry spends the most on digital transformation?
Discrete manufacturing ranks first in IDC’s spending data, at almost half a trillion dollars in 2024 per its May 2024 update. On Fortune Business Insights’ revenue measure, BFSI leads with 25.06% of the 2026 market.
What is the fastest-growing industry for digital transformation spending?
Securities and investment services, at a 21.1% five-year CAGR in IDC’s November 2023 edition. Banking (20.0%) and insurance (19.2%) follow. Fortune Business Insights, measuring revenue, expects healthcare to grow fastest over 2026-2034.
How much will be spent on digital transformation in 2026?
$3.4 trillion, per IDC’s October 2022 forecast with a 16.3% five-year CAGR. Fortune Business Insights, which sizes market revenue instead, projects USD 3,140.86 billion for 2026. Newer IDC releases give totals for 2027 and 2028.
How much of digital transformation software spending goes to AI?
About 40% by 2029, according to IDC’s V1 2026 guide. Retail and Services is projected to reach 42%. Financial services has the highest current AI share; manufacturing and resources has the lowest.
How can I check DX spending by industry figures shared on Reddit?
Match each figure to its IDC edition and forecast window. Securities and investment services showed 20.6% in IDC’s October 2022 release and 21.1% in November 2023, so an undated Reddit number can point to either.
Sources
https://www.idc.com/resource-center/blog/dx-software-in-transition-ai-investment-trends-by-sector/
https://www.businesswire.com/news/home/20240530917191/en
https://www.quantumrun.com/consulting/digital-transformation-market-statistics/
https://www.quantumrun.com/consulting/ai-in-fintech-market-statistics/
