REPORT DESCRIPTION

Market Size and Overview:

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:

The utilization of digital technologies, including IoT, cloud computing, big data, and social media, to enhance business processes characterizes digital transformation. It involves integrating digital technologies across all organizational functions, significantly impacting business operations and customer outcomes. In the contemporary digital landscape, digital co-creation and transformation are evolving into standard business practices. The global expansion of digital transformation is primarily driven by the widespread adoption of advanced technologies like IoT, AI, and robotics across diverse industry verticals. Businesses transitioning from conventional models to technologically advanced ones contribute to the growth of digital platforms, thereby enhancing operational efficiency. The imperative for industries to accelerate business growth through refined strategies, cost optimization, performance enhancement, and real-time monitoring propels the shift towards digital transformation. The market's momentum is further augmented by the surge in industrial automation across various sectors, particularly with the global proliferation of the automotive industry. The International Federation of Robotics (IFR) anticipates the installation of approximately 3.3 million standalone industrial automotive robots worldwide by 2023. Key market players are actively promoting digital solutions, fostering new opportunities and fueling market growth in the forecasted period.

COVID-19 Impact on the Digital Transformation Market:

The COVID-19 crisis induced significant transformations in the operational paradigms of companies across various sectors. To remain pertinent, businesses and economies sought innovative strategic approaches as consumer interactions shifted online. Consequently, companies embraced digital technology solutions and engaged with customers through digital channels, marking a paradigm shift that promises lucrative opportunities for the market in the near future.

Market Drivers:

The market experiences growth driven by the proclivity of industries towards digital technology:

In the face of ever-evolving technological landscapes, organizations are entering a new era where digital technologies play a pivotal role in stimulating organizational growth. The deep penetration of IoT-based products, the proliferation of mobile devices and applications, substantial data generation, and the increasing reliance of businesses on IoT products drive the growth of the digital transformation market.

The upsurge in online sales modes propels market growth:

Businesses are increasingly exploring untapped online avenues to enhance sales efficiency, leveraging market dynamics. The evolution of business methodologies and strategies opens new opportunities for various digital technologies, contributing significantly to the digital transformation market's expansion.

The rapid decline in technology costs emerges as a key factor in boosting market growth:

The affordability of technologies associated with digital transformation, now prevalent in every industry, enables individuals and small businesses to adopt them. The widespread popularity and increasing industry familiarity make it cost-effective to incorporate these technologies, leading to exponential market growth.

Government initiatives and policies in developing nations align with organizational interests, driving market growth:

Digital transformation plays a crucial role in connecting people with their political leaders and government visions, facilitating effective public service. Initiatives in countries like India, encompassing digital payments, direct benefit transfers, e-education, and digitization of government institutions, contribute to market growth. Similarly, the Singapore government's initiatives and mobile applications release further fuel the growth of the global digital transformation market.

Market Restraints:

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

While developed countries have harnessed the full potential of the internet and ICT, underdeveloped and developing nations face obstacles like poor technical infrastructure, legal deficiencies, social barriers, or a lack of skilled human resources, limiting their ICT potential.

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

The complexity of digital transformation technology systems presents unique security breach risks, especially with the surge in IoT and cloud-based services adoption. To counter this challenge and ensure secure implementation of digital technologies, robust cybersecurity measures are essential, potentially slowing down market growth.

Global Digital Transformation Market – By Technology.

The global digital transformation market encompasses various technologies, including:

1. Internet of Things (IoT)
2. Cloud Computing
3. Big Data and Analytics
4. Artificial Intelligence
5. Cybersecurity
6. Mobility Solutions
7. Augmented Reality/Virtual Reality
8. Robotic Process Automation
9. Blockchain
10. Others

IoT is anticipated to demonstrate the most rapid growth worldwide, asserting its dominance in the digital transformation market. Numerous organizations have initiated the integration of IoT-based technologies, recognizing them as pivotal for digital transformation. Projections indicate that global spending on IoT technology will exceed USD 1 trillion by the end of 2022, with a projected Compound Annual Growth Rate (CAGR) surpassing 13% throughout the forecast period. Consequently, IoT is poised to play a crucial role in reshaping the digital transformation landscape in the coming years.

Blockchain technology is expected to register the highest CAGR, exceeding 22%, driven by heightened demand for transactional capabilities in the financial industry. Increased investments in blockchain technology in both developed and developing nations further contribute to its burgeoning popularity.

Other segments, including augmented reality/virtual reality, artificial intelligence, cloud computing, and big data, are poised to experience rapid growth, emerging as breakthrough technologies in the foreseeable future.

Global Digital Transformation Market – By Industry Size.

The market is classified based on industry size into two segments:

1. Small & Medium Enterprises (SMEs)
2. Large Enterprises

Large enterprises are anticipated to lead the global market, driven by the substantial advantages offered by digital technologies. The appeal of digital transformation has led large enterprises to invest significantly in strengthening their product portfolios.

SMEs also command a noteworthy share and are projected to experience robust growth. Start-ups and SMEs are actively embracing and implementing swiftly evolving digital technologies within their business operations.

Global Digital Transformation Market – By Deployment Model.

The market's deployment models consist of:

1. On-premises
2. Cloud-based

The on-premises segment has historically dominated the global digital transformation market. Organizations opt for on-premises deployment due to the assurance of data confidentiality and security, full control, and customizability.

Conversely, the cloud-based segment is anticipated to exhibit the highest CAGR, surpassing 14.2% during the forecast period. The increasing trend towards cloud-based technology solutions is compelling more organizations to shift their focus in that direction.

Global Digital Transformation Market – By Industry Verticals.

The market's industry verticals include:

1. Retail
2. Government and Public Sector
3. Healthcare
4. Supply Chain and Logistics
5. Utilities
6. Manufacturing
7. Insurance
8. IT & Telecommunication
9. Media & Entertainment
10. Banking & Financial Services
11. Education
12. Others

The Banking, Financial Services, and Insurance (BFSI) segment command the largest revenue share in the digital transformation market and is expected to maintain its dominance. The adoption of digital technologies, particularly the use of smartphones for seamless financial transactions and the rising demand for customer satisfaction, are key drivers of digital transformation in the BFSI segment.

Digital technology has proven transformative for the healthcare segment, driven by increasing consumer volume, high user dependence on digital health platforms, and supportive government initiatives. The healthcare industry in India, for instance, is projected to reach USD 132.84 billion by FY22, reflecting a CAGR of 17%, according to a survey by India Brand Equity Foundation.

Global Digital Transformation Market – By Region.

The market is geographically divided into regions:

1. North America
2. Europe
3. Asia-Pacific
4. Latin America
5. The Middle East and Africa

North America holds the largest market share, attributed to the widespread penetration of IoT-based solutions and digital technologies across various industry verticals. The region's industrial revolution, driven by market competition, digitization, and increasing consumer demands, is pressuring businesses to adopt and implement digital-based solutions.

Europe is expected to maintain a significant market share, with countries such as the U.K., France, and Italy taking proactive initiatives and undergoing radical digital transitions, emerging as leaders in the region.

Asia-Pacific is poised for remarkable growth, exhibiting the highest CAGR over the forecast period. Countries like China, Japan, and India are continuously evolving in the region, contributing to its dynamic digital transformation landscape.

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.

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.