Global Digital Transformation Market Size (2023 - 2030)

The Global digital transformation market was valued at USD 905.38 Billion and is projected to reach a market size of USD 3790.90 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 22.7%.

Market Overview:

Digital transformation is the use of digital technologies such as IoT, cloud computing, big data, and social media to improve and enhance business processes. It refers to the incorporation of digital technologies into all functional business areas of an organization that predominantly affects how businesses operate and deliver results to their customers. In today’s digital society, digital co-creation and transformation are becoming a dynamic business norm. The global market growth of digital transformation is mainly due to the increased adoption of advanced technologies like IoT, AI, robotics, and others among various industry verticals. Enterprises shifting from traditional business models to technologically advanced business models help grow digital platforms, hence increasing their performance efficiency. This need for industries to speed upbusiness growth by augmenting various business strategies, improve operational expenses, increaseperformance and track real-time business activities, are drivingthe industries to shift towarddigital transformation.The market for digital transformation is likely to gain impetus from the emergence of industrial automation in a wide range of industries and sectors. The worldwide expansion of the automotive industry would result in the rising implementation of automation and industrial robotics. The International Federation of Robotics (IFR), declared that by 2023, around 3.3 million stand-alone industrial automotive robots would be installed worldwide. Also, key players controlling the market are taking major initiatives to help customers adopt digital solutions. Such initiatives are likely to create new opportunities in the market and bolster market growth in the forecasted years.

COVID-19 Impact on the Digital Transformation Market:

The COVID-19 crisis brought about years of change in the way companies operate and do business in almost allsectors. To stay relevant, businesses and economies required new competitive strategic ideas and practices when consumers shifted online. Therefore, to meetup with consumer requirements, companies and industries embraced digital technology solutions and started interacting with customers through digital channels. This paradigm shift in the waybusinesses operate is bound to create lucrative opportunities for the market shortly.

Market Drivers:

The inclination of industries towards digital technology is driving growth in the market:

In the wake of ever-evolving technological advancements, organizations and enterprises are enteringa new era where digital technologies are playing a vital role to stimulate organizational growth. Deep penetration of IoT-based products and devices in our everyday life,a perpetually growing number of mobile devices and applications, large volumes of data sets created by these devices, and a rise in dependency of businesses on IoT products and solutions drive the digital transformation market growth.

Increasing online sales modepropelling the growth of the market:

Businesses are now starting to explore untapped online opportunities to increase their sales efficiency, taking advantage of the market dynamics.The shift in their business methodologies and strategies is opening new opportunities for several digital technologies to take over, contributing largely to the growth of the digital transformation market.

The rapid drop in the cost of technology has made it more affordable making it a key factor to boost the market growth:

Technologies associated with digital transformation have become more and more affordable with their presence in every industry, making it possible for individuals and small businesses to adoptthem. Due to it being highly popular and with growing industry knowledge, it has become very inexpensive to incorporate it into the organization, making the market grow exponentially.

Government initiatives and policies in developing nations align with the interests of organizations fuelling the market growth:

Digital transformation plays a vital role in connecting people with their political leaders and their vision. It helps them in serving people effectively. For instance, in India,these initiatives include Digital payments using BHIM, AADHAAR, direct benefit transfer, e-education, digital farming, and digitization of various governmentinstitutions. Furthermore, the Singapore government is also adopting initiatives and providing platforms for access to government data sets and released more than 110 mobile applications for the citizens. Therefore, this inclination of government toward digital technology and the formulation of such policies and initiatives to promote digitization, especially in developing nations, is one of the major factors to fuel the growth of the global digital transformation market in the upcoming years.

Market Restraints:

Underdeveloped information and communication technology infrastructure in the less developed and developing nations hinder the growth of global market size:

Developed countries have undoubtedly facilitatedthe infinite potential of the internet and ICT in every stratum of society. This had resulted in significant cost reduction and increased standard of living for their citizens.However, many underdeveloped and developing nations are yet to gain all the potential of ICT due to reasons such as poor technical infrastructure, legal deficiencies, social barriers, or lack of skilled human resources.

Increasing security concerns may hinder the market expansion during the forecast period:

With large amounts of data stored online, its storage and processing have become increasingly complicated, making them difficult to take accountability. The complexity of digital transformationtechnology systems presents unique security breach risks and challenges. The security challenges increase with the increased adoption of IoT and cloud-based services among organizations. Therefore, efficient cybersecurity measures are needed to properly implement digital technologies and tackle this problem, slowing down the growth of the market.

DIGITAL TRANSFORMATION  MARKET REPORT COVERAGE:

This research report on the Digital Transformation Market has been segmented and sub-segmented based on Technology, Industry Size, Deployment Model, Industry Verticals,Region, and Key Companies.

Global Digital Transformation Market – By Technology.

• Internet of Things
• Cloud Computing
• Big Data and Analytics
• Artificial Intelligence
• Cybersecurity
• Mobility Solutions
• Augmented Reality/Virtual Reality
• Robotic Process Automation
• Blockchain
• Others

IoT is predicted to post the fastest growth across the globeand dominate the digital transformation market. Several organizationshave started implementing IoT-based technologies and have recognized them as one of the most important technological trends for digital transformation. It is estimated that the global technology spending on the Internet of things is to cross more than USD 1 trillion by the end of 2022, with a CAGR, of over 13% during the forecast period. Thus, IoT has become a key player in reshaping the digital transformation industry in the next few years.

Blockchain technology is estimated to grow at the highest CAGR, of over 22% during the forecast period. This is due to its increased demand to carry out transactions from the financial industry. Also, surging investments in this technology in several developed anddeveloping nations are the primary reasons for its growing popularity.

Accordingly, other segments such as augmented reality/virtual reality, artificial intelligence, cloud computing, and big data are to witness rapid growth becoming the next breakthrough technologies in the coming future.

Global Digital Transformation Market – By Industry Size.

• Small & Medium Enterprises

• Large Enterprises

Based on the industry size, it is segmented into two parts – Small and Medium-sized Enterprises (SMEs) and large enterprises. The large enterprises sector is likely to lead the global market. The increasing advantages of digital technologies have inspired large enterprises to invest in them and strengthen their product portfolios. 

The SMEs sector also holds a significant share and is estimated to witness strong growth. Start-ups and SMEs have started adopting and implementingfast-evolving digital technologies in their businesses. 

Global Digital Transformation Market – By Deployment Model.

• On-premises
• Cloud-based

The on-premises segment has largely dominated the global digital transformation market. Organizations opt for the on-premises deployment of digital technologies because it offersdata confidentiality and security, full control, and is customizable.

However, the cloud-based segment is estimated to grow at the highest CAGR of over 14.2%, during the forecast period as more and more organizations are shifting their interests to the cloud-based technology solutions

Global Digital Transformation Market – By Industry Verticals.

• Retail
• Government and Public Sector
• Healthcare
• Supply Chain and Logistics
• Utilities
• Manufacturing
• Insurance
• IT & Telecommunication
• Media & Entertainment
• Banking & Financial Services
• Education
• Others

The BFSI segment accounts for the largest revenue share of the digital transformation market and is estimated to maintain its dominance due to the adoption of digital technologies all over. Increased use of smartphones for seamless financial transactions, and surging demand forcustomer satisfaction are the major causesof the need for digital transformation in the BFSI segment.

Digital technology has proved to be a game-changer for the healthcare segment, owing to the rapidly increasing consumer volume, high user dependency on digital health platforms, and government initiatives and policies. According to a survey by India Brand Equity Foundation, the healthcare industry in India is predicted to increase to USD 132.84 billion by FY22 at a CAGR of 17%.

Global Digital Transformation Market – By Region.

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

North America holds the largest share in the global market. The growth of the segment is majorly attributedto the deep-rooted penetration ofIoT-based solutions and digital technologies across various industry verticals. Also, with the industrial revolution in the region driven by market competition, digitization, and increasing consumer demands, it is pressurizing regional businesses to adopt and implement digital-based solutions in the region.

Europe is estimated to hold a significant market share in the forecasted period. Countries such as the U.K., France, and Italy are taking initiatives and have undergone radical digital transition and emerging as leaders in the region.

Asia-Pacific is predicted to grow at a remarkable rate and will exhibit the highest CAGRover the forecast period.China, Japan, and India are the countries that are continuously evolving in the region.

Global Digital Transformation Market – By Key Companies.

1. Amazon Web Services
2. Oracle Corporation
3. Microsoft Corporation
4. VMware Inc.
5. SAP SE
6. IBM Corporation
7. Salesforce.com Inc.
8. HCL Technologies Ltd.
9. Wipro Ltd.
10. Accenture plc
11. Cisco Systems Inc.
12. Teradata Corporation
13. Cloudera Inc.
14. Tableau Software
15. Huawei Technologies Co. Ltd.
16. Apple Inc.
17. NVIDIA Corporation

Strategic product launches to boost market expansion:

• In January 2021, SAP SE launched a digital solution, “Rise withSAP”, to enable enterprises and customers to adopt digital transformation technologies.

Recent Industry Developments:

• In 2021, Oracle Corporation launched a multi-cloud platform to help enterprises monitor critical loads on on-premises-based and cloud-based technologies.