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Report Overview: Digital Transformation MarketThe global digital transformation market size was valued at USD 173.27 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 11.4% from 2021 to 2027. Growing demand for the adoption of the Internet of Things (IoT) across industries is promoting the introduction of connected and data-rich solutions. These solutions are capable of embedding intelligence into business operations to facilitate better and more effective customer engagements. Growing usage of smartphones, mobile devices, and applications is promoting digitization. Digital transformation supports organizations in mitigating risks and handling disruption such as marketplace fluctuation, corporate restructuring, and geopolitical environment that are unanticipated, and can lead to unpredictable results. Shifting from traditional to new digitalized business models facilitates the introduction of more technologically advanced products and services. Digital transformation holds the potential to streamline and integrate all business operations for increasing business performance efficiency. It helps organizations in streamlining their operations to save time, efforts, and resources by replacing traditional processes with automation, thus lowering the rate of errors by users. Digital transformation supports organizations in improving their brand’s reputation, customer experience, and customer retention ratios through the implementation of software. These software help organizations in educating and training their internal teams about various aspects of their organizations. Moreover, digitally transformed organizations can adapt to the evolving technological landscape and are able to tackle sudden shifts in the industry. More importantly, a major part of the market growth is anticipated to be driven by companies investing in mobility, cloud platforms, and big data technologies as part of their development of Digital Experience Platforms (DXP). Major market players are concentrating on developing new technologies to facilitate the industry with fast response time and low spending. In recent years there are many discoveries in the field of technologies such as block-chain, quantum computing, and Artificial Intelligence (AI). The organizations are generating huge amounts of data and they require technologies such as machine learning and AI to generate insights from the data, which is the major factor driving the adoption of these technologies. The companies are increasingly adopting these technologies to make the work more efficient leveraging the analytics solutions for daily operations. Major challenges that companies face while executing digital transformation include the lack of budget allocation and planning. To undertake a digital transformation, a company needs to make a huge investment in acquiring state-of-the-art technology and the appropriate team to execute the same. Thus, the entire process requires a huge capital, which may lead to lower profits initially, however in the long run, the huge investment could become one of the main reasons for business success. Lack of budget allocation affects organizational decision making and pursuing transformation initiatives. To overcome this, the companies need to have a strategy in place for the long-term and have a sound capital plan. The COVID-19 crisis has emerged as a major challenge for the global economy. Digital transformation can help enterprises to withstand the business continuity challenges posed due to the social distancing, lockdown, work from home, and other mandates impacting the market. While some organizations were prepared, others faced challenges due to the lack of digital strategy and tools or infrastructure to get employees to work from their homes. Ensuring employee productivity and allowing teamwork across the geographically discrete workforce is another market barrier. Despite all the outcry COVID-19 has produced to professional, personal, and community life, it also opened opportunities for businesses. Since technology, when used properly, enhances efficiency and productivity, the outbreak offers opportunities for companies to work on their Digital Experience Platforms (DXP). Thus, digital transformation solutions will help teams in learning to collaborate and companies can realize they can function efficiently without having people in the office. This scenario is anticipated to propel the growth of the digital transformation market. Type Insights The service segment is anticipated to expand at the highest CAGR of 20% over the forecast period 2021-2027. The service segment is further segmented into professional services and implementation & integration. The adoption of digital transformation solutions entails the need for services such as training and support, thus, driving the growth of the service segment over the next eight years. The professional services segment is expected to expand at the highest CAGR over the forecast period. Increasing digitalization is propelling the demand for executive education programs for preparing the existing workforce to successfully adapt to the evolving technological landscape. Based on solutions, the market is further segmented into analytics, cloud computing, mobility, social media, and others. The higher adoption of solutions can be attributed to the rapidly evolving technological landscape that requires organizations to keep updating their systems with the latest technology. Thus, allowing the organizations to have an edge over its competitors. The analytics segment occupied a significant share of the global market in 2019, owing to the increasing demand to synthesize large volumes of business data in order to derive insights along with the growing number of smart devices and applications being used. These factors are collectively promoting the adoption of analytics across organizations belonging to different sectors.
The healthcare segment is expected to witness significant growth and is estimated to expand at the highest CAGR of over 23% in the next eight years. Based on end-use, the market is segmented into academia, BFSI, government, healthcare, IT and telecom, manufacturing, retail, and others. The increasing demand for electronic data across operation channels and patient outreach is anticipated to accelerate industry growth. The rapidly increasing volume of customers has led to the necessity of scalable business models to facilitate the efficient handling of patients. These newly designed models are expected to help in mitigating risks associated with costs and facilitate the implementation of new business strategies. Furthermore, they help enhance the patient experience as they enable better decision making, allowing for the optimal utilization of resources and time. Retail is one of the emerging verticals in terms of the adoption of innovative and emerging and technologies, such as big data analytics, cloud computing, DevOps, social networks, and digital stores. Factors that are driving the market demand in retail are the necessary satisfaction of customer expectations and rising customers’ purchasing power, which in turn is leading to the new customer acquisitions and helping in the retention of existing customers. Currently, retailers are using e-commerce, web, and various other applications to attract and retain their customers digitally. Digital transformation requires continuous integration of customer services, pricing, inventory, merchandising, and supply chain processes to allow shoppers to maximize convenience and save time.
End-use Insights: Digital Transformation Market
Deployment Insights: Digital Transformation MarketThe hosted segment is expected to expand at the highest CAGR of over 25% owing to the increasing use of mobile devices and advancements in information sharing technologies. This type of deployment method offers increased flexibility and enables large-scale customization of products and services for organizations. Cloud-based strategies help in improving cost structures and setting up a control center for coordinating and arranging various components of the supply chain. A control tower system captures transportation data and processes it for providing improved visibility and facilitating better decision-making, efficiency, and services. The on-premises segment dominated the market in 2019. Initially, several organizations have opted for on-premise solutions as it offers feasible options for the radical customization of the software. The on-premise solutions offer more data security and helps companies to comply with various regulations. Big organizations have invested heavily in on-premises deployment as it helps them in taking total control of the confidential data. On-premises deployment helps in the installation of customized network of digital transformation that suits the demand of the organization entirely.
Enterprise Insights: Digital Transformation MarketThe small and medium enterprise segment is expected to grow at the highest CAGR of over 24% over the forecast period. The phenomenal growth can be attributed to factors such as the reduced cost of devices and increased focus on cloud computing, thus making it much more convenient for SMEs to streamline their businesses. The increasing awareness about the benefits of digitalization has led companies to invest significantly in order to expand and sustain their existing positions in a highly competitive market. Furthermore, rapid advancements in cloud technology and the introduction of cutting-edge technologies such as artificial intelligence, Internet of Things (IoT), among others have made it possible for SMEs to adopt them. The large enterprise segment is expected to dominate the market share over the forecast period. Large enterprises are adopting digital transformation solutions as they offer cost-effectiveness and easy implementation process. For large enterprises, it is important to have successful solutions as it requires ease of system integration, flexibility, and data privacy. Owing to strong financial capability, large enterprises can execute digital strategy across businesses and accelerate transformation across different sectors. Additionally, large enterprises play an important role in promoting technology-driven ideas and supporting digital awareness.
Regional Insights: Digital Transformation MarketNorth America dominated the market and accounted for over 30% share of global revenue in 2019. This can be attributed to the increasing penetration of the internet and the accelerated use of different types of online payment modes, especially in the retail sector. The presence of many digital transformation solution providers in North America is expected to significantly drive growth. Digital transformation requires a very active and flexible IT support, which is present in most companies in this region. The region has a massive demand for software and robotics solutions, owing to high manufacturing, retail, and automotive activity in Canada and the U.S. Asia Pacific is presumed to emerge as the fastest-growing region over the next eight years, owing to the rapidly increasing number of SMEs and the expanding service sector. Growing awareness about the benefits of switching to the cloud, along with swift technological advancements, are some of the factors compelling SMBs to transform their business to ensure future growth. Digital transformation solutions are adopted by companies to enhance and streamline business processes and enable informed business decision-making. Rising mobile device users, growing online commerce, and increasing use of social media analytics, are some of the factors likely to fuel the growth.
Key Companies & Market Share Insights: Digital Transformation MarketThe technology and software industry are highly fragmented, and several players hold a significant market share. Industry players are observed making heavy investments in R&D activities with the objective of increasing their market share and ensuring the organic growth of their companies. Furthermore, these players are actively engaging in new product development to improve and expand their existing products and services portfolios, thus offering these companies an opportunity to acquire new customers and validate the technology. Moreover, Companies are stressing on mergers and acquisitions and partnerships to develop technologically advanced products to gain a competitive edge. For instance, in December 2019, NTT Corporation and Microsoft Corp. announced a multi-year strategic alliance aimed at delivering secure and reliable solutions that help enterprise customers accelerate their digital transformations. The alliance will bring together NTT’s best-in-class ICT infrastructure, managed services, and cybersecurity expertise, with Microsoft’s trusted cloud platform and AI technologies. Some of the prominent players dominating in the digital transformation market include:
Key companies Profiled: Digital Transformation Market Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2020 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global digital transformation market report based on type, deployment, enterprise size, end use, and region.
- SAP SE
- IBM Corporation
- Oracle Corporation
- Google Inc.
- Dell EMC
- Hewlett Packard Enterprise Co.
- CA Technologies
- Microsoft Corporation
- Adobe Systems Incorporated
- Accenture PLC
- Capgemini Group
- Apple Inc.
- Kellton Tech Solutions Ltd.
Type Outlook (Revenue, USD Billion, 2016 - 2027)
- Cloud Computing
- Social Media
- Professional Services
- Implementation & Integration
Deployment Outlook (Revenue, USD Billion, 2016 - 2027)
Enterprise Size Outlook (Revenue, USD Billion, 2016 - 2027)
- Large Enterprise
- Small & Medium Enterprise
End-use Outlook (Revenue, USD Billion, 2016 - 2027)
- IT & Telecom
Table of Contents Chapter 1 Methodology and Scope 1.1 Research Methodology 1.2 Research Scope and Assumptions 1.3 List of Data SourcesChapter 2 Executive Summary 2.1 Global Digital Transformation Market - Industry Snapshot & Key Buying Criteria, 2016 - 2027 2.2 Global Digital Transformation Market, 2016 - 2027 2.2.1 Global digital transformation market, by region, 2016 - 2027 2.2.2 Global digital transformation market, by type | read more...