USD 577.16 billion
Digital Transformation Market Size, Share, Growth Analysis, By Offering(Solution (Software solution, Hardware Solution, Platform solution), and Services (Consulting Services), By Technology(Cloud Computing, Artificial Intelligence, Big Data & Analytics, Blockchain), By Deployment Mode (Cloud, On-premises), By Business Function (Accounting & Finance, IT & Operations, Information Technology, Human Resources), By Enterprise Size (Large Enterprise, and Small & Medium Enterprise), By Verticals(BFSI (Fraud Detection and Prevention, Asset and Investment Management, Customer Service Automation (Chatbots), Personalized Financial Recommendations), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45B2027 |
Region:
Global |
Published Date: June, 2024
Pages:
157
|Tables:
118
|Figures:
77
Digital Transformation Market Insights
Digital Transformation Market size was valued at USD 561.19 Billion in 2022 poised to grow from USD 695.88 Billion in 2023 to USD 3889.60 Billion by 2031, growing at a CAGR of 24% in the forecast period (2024-2031).
The use of mobile devices and apps, together with the increasing acceptance of industrial robots, are the main factors propelling the growth of the digital transformation market. A key driver of growth for the digital transformation sector is the increasing use of industrial robots. On account of their complex sensors, artificial intelligence and network abilities, manufacturing and industrial robots are now operating in entirely different environments, especially when compared with other forms of production. These systems facilitate processes, increase productivity, and consequently prepare way for broader digital revolution in various industries. In addition, it is believed that the growth in adoption of digital experience platforms (DXPs) with an aim of satisfying consumers’ needs is one among the major forces driving the market.
However, it is anticipated that worries about data security and privacy related to digital technologies may impede industry expansion. The extensive use of digital transformation in the healthcare sector is a significant driver of the global digital transformation market growth. Due to the rising trend of telehealth and remote monitoring systems for patients, health workers can connect with their clients from any part of the world. Connectivity and sophisticated digital technology are needed for this shift in the way healthcare is delivered. Therefore, it is anticipated that these factors will propel market expansion throughout the projected time.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Large Enterprises
Fastest Growth
Large Enterprises
Growth Rate
26.7% CAGR
Global Digital Transformation Market ($ Bn)
Country Share by North America (%)
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Digital Transformation Market Segmental Analysis
The market is segmented based on Component, Industry Vertical, Technology, and region. In terms of Component, the market is bifurcated into Solution and Service. Based on the Industry Vertical, the market is grouped into BFSI, Retail & E-commerce, IT & Telecom, Healthcare & Lifesciences, Government & Defense and Others. In terms of Technolgy, the market is grouped into Artificial Intelligence, Cloud Computing, Blockchain, Big Data & Business Analytics, Cybersecurity and Others. Based on Region, the market is segmented into North America, Europe, Asia Pacific, Central & South America and Middle East & Africa.
Analysis by Component
As per categorization by component, the market is classified as solution and service. Among these, solution earned the largest share and continues to dominate the market. due to revolutionizing technologies such as cloud computing, artificial intelligence (AI) and Internet of Things in operational processes, the solution component commands the global digital transformation market. Through altering consumer experiences enhancing productivity and facilitating data-driven decisions, it has been seen as crucial to digital transformation programs.
Given that there is more demand for specific implementation, advisory, and support services, the service sector of the global digital transformation market is forecasted to witness fastest growth. In this time of rapid creation of digital technology, businesses need expert advice to master its complexity, make optimal deployment and guarantee a consistent integration process.
Analysis by Industry Vertical
The global market is primarily influenced by telecom and IT sectors due to their dominance in data management, networking and communication infrastructure developments. The success of digital transformation relies heavily on IT and telecom as they play a major part in offering cloud services, enabling artificial intelligence as well as Internet of Things integration all of which help organizations expand operations and better their digital capabilities.
The increased desire for improved customer experiences, safe transactions, and regulatory compliance is expected to propel the BFSI sector to become the fastest-growing segment in the global digital transformation market. Blockchain, digital banking, AI-driven analytics, and other innovations are being rapidly adopted, making BFSI a major force behind the expansion of the digital transformation.
Global Digital Transformation Market By Component (%)
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Digital Transformation Market Regional Insights
North America is currently the global leader in digital transformation, due to its impressive technological structure, an elevated number of state-of-the-art option, and a lot of money spent on creativity. In addition, this region is home to many big IT firms, huge R&D projects, and supportive government policies therefore it has convenience for all these transformations. Additionally, North America’s developed economy and the quest for improved consumer experiences are largely responsible for the growing number of firms embracing digital solutions. The wide range of sectors using artificial intelligence (AI), internet of things (IoT), cloud computing, and big data analytics attests to North America’s role in leading the world in terms of digital transformation and puts it at the forefront when it comes to technology innovation.
It is growing fastest in the Asia Pacific region due to having large amounts of computer-literate individuals, fast advances in economies, and increasing urbanization. The extensive investments in infrastructure as well as the high levels of mobile phones and internet usage in this region are driving digital innovations. To be able to compete effectively, governments and businesses across Asia Pacific are focusing more on digital transformation. Nations such as China, India or Japan are doing great in terms of AIs, IoTs and deploying 5G Network. This progressive digital technology embrace by region considered having large production plants and thriving start-up firms; this has made it easier for rapid embracing of this technology.
Global Digital Transformation Market By Geography
- Largest
- Fastest
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Digital Transformation Market Dynamics
Drivers
Growing Use of Mobile Apps and Devices
-
Life today has a number of radical changes due to the increasing intelligence of mobile devices and apps. Mobile devices allow people to always be connected and use internet along with other digital services on environment and location of their own choice. It has altered how individuals interact with services, information and each other opening up avenues for new commercial opportunities and business models for organizations.
Putting Digital Tools and Technologies to Use
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By incorporating digital technologies and resources into a digital transformation project, businesses can effectively change the way they operate. By adopting technologies such as automation, big data analysis, cloud computing and artificial intelligence; organizations can increase their efficiency, become more profitable and acquire market advantage.
Restraints
Absence of Worries about Data Security and Privacy
-
Challenges related to data security and privacy are major roadblocks for digital transformation initiatives. As a result of the growing usage of technology by companies to increase productivity, enhance customer experience and enable creativity, it is becoming unavoidable to collect, hold and analyze huge amounts of confidential data.
Outdated Technologies and Legacy Systems
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Dealing with antiquated technologies and legacy systems is a part of digital transformation. For decades, or even more, numerous organizations have kept relying on archaic systems that were developed using outdated technologies and architectures. These systems often do not communicate effectively with modern technologies, hampering efforts to incorporate new digital alternatives.
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Digital Transformation Market Competitive Landscape
Global digital transformation market is market Growth by intense competition amongst the leading technology firms and service providers. The key players who are enabling innovation by use of sophisticated AI, cloud computing and Internet of Things (IoT) solutions include Google, SAP, IBM, Microsoft and Accenture. These organizations are entering into strategic partnerships, acquiring new technology companies and constantly expanding their digital service lines to cater for the growing need for digital transformation across various industries.
Top Player’s Company Profiles
- Microsoft (US)
- SAP (Germany)
- Baidu (China)
- Adobe Systems (US)
- Alibaba (China)
- IBM (US)
- Google (US)
- Marlabs (US)
- Salesforce (US)
- Broadcom (US)
- Equinix (US)
- Oracle (US)
- Hewlett Packard Enterprise (US)
- HCL Technologies (India)
- EY (UK)
- Cognizant (US)
Market Recent Developments
- In March 2024, Microsoft introduced AI tools for business analytics and automation on its Azure cloud platform that have greatly improved them. These technologies utilize sophisticated machine learning algorithms and possess great capacity for processing large volumes of data; hence they help in hastening digital transformations within firms, improving decision-making processes and optimizing operations.
- In April 2024, IBM unveiled a security solution based on quantum computing intended for finance industry digital transformation initiatives. To address the escalating worries regarding cybersecurity, this advancement improves data encryption and protection. As more businesses embrace digital-first approaches, IBM’s inventiveness signifies an important stride in protecting digital frameworks.
- In February 2024, The newer NLP features in Cloud AI of Google have been arranged to enhance customer interaction and automate content management for businesses. The adoption of this privilege enables these companies fasten their digital transformation process while at the same time cementing Google’s global market presence with advanced AI powered communication tools.
Digital Transformation Key Market Trends
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Digital Transformation is Revolutionizing Corporate Landscapes Post-Pandemic: Dynamic trends in the global digital transformation market Trends are transforming the corporate environment across several industries. The increasing popularity of digital technology has led to a number of trends, one of which is the acceleration of remote and hybrid work models. In the light of Covid-19 pandemic, the businesses are urged to embrace digital transformation that would enable flexible working hours, virtual communication and remote collaboration.
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AI and ML to Enhanc Decision-Making, Automation, and Insights Across Industries: To enhance their ability to make decisions, automate processes and derive insights from data more effectively businesses are using AI. Machine learning algorithms are being integrated into numerous applications to deliver predictive analytics, personalised service offerings and automation of tasks. This trend indicates that smart technologies are becoming essential for enhancing productivity as well as driving innovation in all fields.
Digital Transformation Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, in conclusion, the growing use of mobile devices, industrial robots, and digital experience platforms is driving a large growth in the global market for digital transformation. Obsolete legacy systems alongside data security concerns continue to be part of the issues even as healthcare, and BFSI-related industries drive this change.
North America's technology infrastructure keeps it in the forefront, but Asia Pacific's big and tech-savvy populace is driving the region's rapid development. At the vanguard are businesses like Google, IBM, and Microsoft, who are always coming up with new ideas to suit changing needs and improve operational efficiency across industries, changing the corporate landscape in the process.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 561.19 Billion |
| Market size value in 2031 | USD 3889.60 Billion |
| Growth Rate | 24% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Digital Transformation Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Digital Transformation Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Digital Transformation Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Digital Transformation Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Digital Transformation Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Digital Transformation Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Digital Transformation Market Report Snapshots
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