Worldwide Spending on Industry Cloud by Financial Firms Set To Grow by 24% in 2018, According to IDCDecember 15, 2017
Worldwide spending on industry cloud in the finance industry (banking, insurance, and securities and investment services combined) is expected to reach $3.2 billion in 2017, which represents an increase of 26% over 2016, according to the International Data Corporation (IDC) Worldwide Semiannual Industry Cloud Tracker. IDC expects the amount to more than double in 2021, amassing total worldwide spending of $7.2 billion.
The manufacturing industry (both discrete and process combined) was a larger spender on industry cloud though, relative to its finance counterpart. This industry is expected to spend $4.2 billion in 2017 and achieve year-over-year growth of 23% in 2018. Similar to the finance industry, the manufacturing industry is also set to double its 2017 spending in 2021, reaching a total of $9.2 billion by then.
However, these two industries pale in comparison when matched against the spending might of healthcare providers. IDC forecasts healthcare providers across the world will spend a total of $8.9 billion in adopting industry cloud solutions during 2017. This industry is expected to increase spending by 20% year over year in 2018 on industry cloud solutions; by 2021, the same industry will spend a staggering $17.6 billion on industry cloud.
On a geographic basis, the United States leads by a very large margin in terms of industry cloud adoption across the three industries combined. It is expected to hit 73% of worldwide spend in 2017, followed by Western Europe at 12%. The U.S. is also forecast to grow 20% year over year in 2018 while the other regions are expected to achieve 27% annual growth in the same period. The three industries are expected to spend a total of $330 million on industry cloud solutions in China in 2018, representing very strong growth of 39% year over year.
"The industry cloud market is without doubt the most strategic long-term opportunity for the IT industry. It’s about companies in every industry using the cloud platform model pioneered by Google, Amazon, and others – building big data and digital innovation communities around them – to become the digital innovation hubs of their own industry. IT suppliers who become strategic suppliers to a successful industry cloud win the business of not just that one organization, but of that customer’s entire digital ecosystem," added Frank Gens, senior vice president & chief analyst at IDC.