Digital Transformation Market Outlook
The approximately US$550 Bn market for digital transformation is expected to be worth over US$2.2 Tn by the end of 2030. Between the years of forecast, 2023 - 2030, the global digital transformation market is anticipated to register a stupendous rate of growth in revenue.
Market Analysis in Brief
Digitalization has driven the shift of the business world from traditional business models to modern ones. It has compelled businesses to discover the phenomenal offerings of next-gen technologies like AI, big data, and cloud computing. The regulatory environment also continues to evolve. The entire scenario establishes a strong breeding ground for digital transformation. While governments strive to better connect with the public, enterprises have placed the spotlight on customer engagement. This is expected to be the key driving force behind excellent growth prospects of the global digital transformation market.
Key Report Findings
- The global digital transformation market value is poised for 18.9% expansion between 2023 and 2030
- Adoption has paced up with growing realization of the fact that those that are digitally transformed will easily adapt to the ever-changing technology landscape, and will be better able to tackle the industry’s shifts in long term
- Adoption highest across BFSI sector, followed by retail and e-Commerce
- Large enterprises at the forefront of adoption
- North America, Asia Pacific, and Europe remain the prime markets
Growth Drivers
Paced Adoption of Automation Process
Organizations can manage a variety of risks connected with handling disruption, including re-establishing a business identity, market volatility, and unanticipated geopolitical circumstances that may result in unpredictable results. Moving from a traditional to a new digitalized setup also facilitates the introduction of numerous new, technologically sophisticated products and services.
For instance, Salesforce, Inc. introduced new features to its customer data platform, a conversational intelligence platform powered by AI, in April 2022, including marketing and customer support capabilities. With the help of these features, customer service and marketing teams can create personalised interactions that strengthen client relationships across a range of industries, including BFSI, manufacturing, and healthcare, among others. During the forecast period, these initiatives would help the digital transformation market grow significantly.
Customer relationship management (CRM), call centres, and social media platforms are just a few examples of the business processes that can be easily connected with digital experience platforms. These capabilities enable organizations to gain strong insights that will increase their ROI.
For instance, in September 2020, the Italian automaker Lamborghini, and Deloitte Digital announced a partnership to enhance Lamborghini's digital experience. In order to help Lamborghini create and distribute the appropriate content to their clients, Deloitte Digital developed a new CRM platform utilising the Salesforce platform and connected the CRM with a content management system. During the anticipated period, these characteristics will fuel the digital transformation market growth.
With the recent emphasis on virtual offices and remote work, the growth of AI, and automation technologies is crucially contributing to the automation of manual procedures and opening new options for businesses to increase productivity and streamline operations. The preference of businesses for cloud-based digital experience platforms contributes to the expansion of the digital transformation market. Because they require less investment in physical infrastructure and enable quick deployment, many businesses favor cloud services.
Businesses can deliver tailored content based on customer preferences, purchasing behaviour, and previous transactions using cloud-based digital experience systems that can be accessed from a variety of devices, including smartphones, laptops, and desktop PCs. These kinds of trends will support the expansion of the market.
The COVID-19 Impact
The COVID-19 pandemic, unlike most other industries, has been a blessing in disguise for the digital transformation market. The situation entirely transformed personal as well as professional lifestyles. It infused a dramatic change in the way how businesses have worked. In response, organizations strived to rapidly adapt to the demands like remote work culture, and online communications to remain relevant. Manufacturing companies were compelled to modify their supply networks, all digitally, contactless. The pandemic situation tuned out to be a major catalyst for digital transformation industry.
Growth Challenges
Lack of Skilled Resource
Despite brisk adoption, and expansion of digital technology, there are differences in adoption and use across advanced countries according to firm size, industry, and demographic groups. This raises questions about how inclusive the digital transformation will be in future. The key challenges facing the digital transformation market space include severe dearth of high-quality and affordable infrastructure, lack of trust in digital technologies and activities, and inadequacy of necessary skills to succeed in the digital economy.
Higher Costs, and Lower Accessibility
A reactive rather than a proactive approach to the openness of the Internet, trade barriers for services, high costs, and difficult access to financing for smaller businesses further create a significant roadblock in front of the digital transformation market participants. The report also marks that the barriers to the reallocation of resources also present a common obstacle to accessing and effectively using digital technologies.
It is possible to overcome these obstacles by creating and implementing comprehensive national digital strategies that would include measures to improve Internet access for underserved groups, SMEs, and regions; emphasize the significance of policies and practises that address digital security and privacy risks on priority, make complementary investments possible, and lower firm-level barriers.
Overview of Key Segments
BFSI Records the Maximum Demand, SMEs Set to Combat Cost Barriers
With around 28.5% share of the overall digital transformation market size in terms of value, BFSI sector leads the pack as a dominant segment. The adoption across banking and financial institutions will continue to remain the maximum, bringing in the largest share of the market revenue pie throughout the period of assessment. The retail and e-Commerce segment is also likely to register significant consumption of digital transformation technologies, shows research. The government and defense sector represents the next key segment of the market, closely trailed by the manufacturing sector.
Based on the size of organization, large enterprises remain the leading consumer segment of digital transformation as it accounts for more than 51% of the total market valuation. On the other hand, despite major cost barriers, SMEs will also remain an important segment of the digital transformation market.
Growth Opportunities Across Regions
North America Retains Dominance
Recording around 29.4% share of the global digital transformation market, North America reaffirmed its dominance in 2022. Asia Pacific follows, closely trailed by Europe. The latter currently accounts for more than a fourth of the overall market revenue. The North American market growth is accelerated by the region's growing adoption of digital transformation across a range of organizations. Governments here have been highly supportive of accelerating digitalization, keeping data privacy and protection at the heart.
Moreover, there are many businesses in a cut-throat race to attract more customers in the fragmented digital transformation sector. The participants engage in strategic alliances. Their presence in many places is increased thanks to the collaborations. The highly sophisticated IT infrastructure across the region will also be a strong driving factor for sustained dominance in the long run.
Key Companies in Global Digital Transformation Space
The digital transformation business is witnessing tremendous growth in the start-up ecosystem. In terms of revenue and expansion of the customer base, many new players are beginning to change the game. In terms of revenue and customer base expansion prospects, many new industry players are beginning to change the game by further increasing their investments towards research and development initiatives.
Some of the well-entrenched players across the digital transformation market include CISCO, Amazon Web Services, Dell, and Oracle. Major vendors considered for profiling in the report include IBM, Cisco Systems, Microsoft Corporation, Sailpoint Technologies, Oracle, DELL, HITACHI, CA Technologies, Okta, Micro Focus, and Centrify Corp.
Recent Notable Developments
- In April 2022, the US Department of Commerce and the National Institute on Standards (NIST) announced members of the inaugural National Artificial Intelligence Advisory Committee (NAIAC), which would advise the Biden administration on how to proceed with the national AI governance efforts
- Including public and private sectors to develop and implement AI technology in many sectors is further expected to boost the growing demand for AI in Canada. For instance, in April 2022, an Ottawa-based company is making virtual meetings more productive with its human-like artificial intelligence (AI)-powered meeting assistant. Uncanny Lab Ltd.'s bluecap technology enhances the meeting experience for both hosts and attendees. The company integrates with video conferencing platforms like Google Meet, and Zoom. It acts as a meeting assistant, and its basic features include automatic meeting transcriptions, review videos, and concise meeting summaries
The Global Digital Transformation Market is Segmented as Below:
By Components Coverage
- Solutions
- Services
By Org Size Coverage
- Small and Medium Enterprises
- Large Enterprises
By Verticals Coverage
- Banking & Financial Services
- Government and Public Utilities
- Healthcare and Life Sciences
- IT and Telecom
- Retail
- Others
By Offerings Coverage
- Fully managed
- Co-Managed
By Geographical Coverage
- North America
- U.S.
- Canada
- Europe
- Germany
- France
- U.K.
- Italy
- Turkey
- Spain
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- India
- Southeast Asia
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC
- Egypt
- Rest of Middle East & Africa
Leading Companies
- Cisco Systems
- Microsoft Corporation
- Sailpoint Technologies
- Oracle
- DELL
- IBM
- HITACHI
- CA Technologies
- Okta
- Micro Focus
- Centrify Corp
Inside This Report You Will Find:
1. Executive Summary
2. Market Overview
3. Global Digital Transformation Market Outlook, 2019 - 2030
4. North America Digital Transformation Market Outlook, 2019 - 2030
5. Europe Digital Transformation Market Outlook, 2019 - 2030
6. Asia Pacific Digital Transformation Market Outlook, 2019 - 2030
7. Latin America Digital Transformation Market Outlook, 2019 - 2030
8. Middle East & Africa Digital Transformation Market Outlook, 2019 - 2030
9. Competitive Landscape
10. Appendix
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1. Executive Summary
1.1. Global Digital Transformation Market Snapshot
1.2. Future Projections
1.3. Key Market Trends
1.4. Analyst Recommendations
2. Market Overview
2.1. Market Definitions
2.2. Market Taxonomy
2.3. Market Dynamics
2.3.1. Drivers
2.3.2. Restraints
2.4. Value Chain Analysis
2.5. Porter’s Five Forces Analysis
2.6. COVID-19 Impact Analysis
2.7. Key Patents
3. Global Digital Transformation Market Outlook, 2019 - 2030
3.1. Global Digital Transformation Market Outlook, by Components, 2019 - 2030
3.1.1. Key Highlights
3.1.1.1. Solutions
3.1.1.2. Services
3.1.2. BPS Analysis/Market Attractiveness Analysis
3.2. Global Digital Transformation Market Outlook, by Verticals, Value, 2019 - 2030
3.2.1. Key Highlights
3.2.1.1. Banking & Financial Services
3.2.1.2. Government and Public Utilities
3.2.1.3. Healthcare and Life Sciences
3.2.1.4. IT and Telecom
3.2.1.5. Retail
3.2.1.6. Others
3.2.2. BPS Analysis/Market Attractiveness Analysis
3.3. Global Digital Transformation Market Outlook, by Offerings, Value, 2019 - 2030
3.3.1. Key Highlights
3.3.1.1. Fully managed
3.3.1.2. Co-Managed
3.3.2. BPS Analysis/Market Attractiveness Analysis
3.4. Global Digital Transformation Market Outlook, by Org Size, Value, 2019 - 2030
3.4.1. Key Highlights
3.4.1.1. Small and Medium-Sized Enterprises
3.4.1.2. Large Enterprises
3.4.2. BPS Analysis/Market Attractiveness Analysis
3.5. Global Digital Transformation Market Outlook, by Region, Value, 2019 - 2030
3.5.1. Key Highlights
3.5.1.1. North America
3.5.1.2. Europe
3.5.1.3. Asia Pacific
3.5.1.4. Latin America
3.5.1.5. Middle East & Africa
3.5.2. BPS Analysis/Market Attractiveness Analysis
4. North America Digital Transformation Market Outlook, 2019 - 2030
4.1. North America Digital Transformation Market Outlook, by Components, 2019 - 2030
4.1.1. Key Highlights
4.1.1.1. Solutions
4.1.1.2. Services
4.1.2. BPS Analysis/Market Attractiveness Analysis
4.2. North America Digital Transformation Market Outlook, by Verticals, Value, 2019 - 2030
4.2.1. Key Highlights
4.2.1.1. Banking & Financial Services
4.2.1.2. Government and Public Utilities
4.2.1.3. Healthcare and Life Sciences
4.2.1.4. IT and Telecom
4.2.1.5. Retail
4.2.1.6. Others
4.2.2. BPS Analysis/Market Attractiveness Analysis
4.3. North America Digital Transformation Market Outlook, by Offerings, Value, 2019 - 2030
4.3.1. Key Highlights
4.3.1.1. Fully managed
4.3.1.2. Co-Managed
4.3.2. BPS Analysis/Market Attractiveness Analysis
4.4. North America Digital Transformation Market Outlook, by Org Size, Value, 2019 - 2030
4.4.1. Key Highlights
4.4.1.1. Small and Medium-Sized Enterprises
4.4.1.2. Large Enterprises
4.4.1.3. BPS Analysis/Market Attractiveness Analysis
4.5. North America Digital Transformation Market Outlook, by Country, Value, 2019 - 2030
4.5.1. Key Highlights
4.5.1.1. U.S. Digital Transformation Market by Value, 2019 - 2030
4.5.1.2. Canada Digital Transformation Market by Value, 2019 - 2030
4.5.2. BPS Analysis/Market Attractiveness Analysis
5. Europe Digital Transformation Market Outlook, 2019 - 2030
5.1. Europe Digital Transformation Market Outlook, by Components, 2019 - 2030
5.1.1. Key Highlights
5.1.1.1. Solutions
5.1.1.2. Services
5.1.2. BPS Analysis/Market Attractiveness Analysis
5.2. Europe Digital Transformation Market Outlook, by Verticals, Value, 2019 - 2030
5.2.1. Key Highlights
5.2.1.1. Banking & Financial Services
5.2.1.2. Government and Public Utilities
5.2.1.3. Healthcare and Life Sciences
5.2.1.4. IT and Telecom
5.2.1.5. Retail
5.2.1.6. Others
5.2.2. BPS Analysis/Market Attractiveness Analysis
5.3. Europe Digital Transformation Market Outlook, by Offerings, Value, 2019 - 2030
5.3.1. Key Highlights
5.3.1.1. Fully managed
5.3.1.2. Co-Managed
5.3.2. BPS Analysis/Market Attractiveness Analysis
5.4. Europe Digital Transformation Market Outlook, by Org Size, Value, 2019 - 2030
5.4.1. Key Highlights
5.4.1.1. Small and Medium-Sized Enterprises
5.4.1.2. Large Enterprises
5.4.2. BPS Analysis/Market Attractiveness Analysis
5.5. Europe Digital Transformation Market Outlook, by Country, Value, 2019 - 2030
5.5.1. Key Highlights
5.5.1.1. Germany Digital Transformation Market by Value, 2019 - 2030
5.5.1.2. France Digital Transformation Market by Product, Value, 2019 - 2030
5.5.1.3. U.K. Digital Transformation Market by Value, 2019 - 2030
5.5.1.4. Italy Digital Transformation Market by Value, 2019 - 2030
5.5.1.5. Spain Digital Transformation Market by Product, Value, 2019 - 2030
5.5.1.6. Rest of Europe Digital Transformation Market Value, 2019 - 2030
5.5.2. BPS Analysis/Market Attractiveness Analysis
6. Asia Pacific Digital Transformation Market Outlook, 2019 - 2030
6.1. Asia Pacific Digital Transformation Market Outlook, by Components, 2019 - 2030
6.1.1. Key Highlights
6.1.1.1. Solutions
6.1.1.2. Services
6.1.2. BPS Analysis/Market Attractiveness Analysis
6.2. Asia Pacific Digital Transformation Market Outlook, by Verticals, Value, 2019 - 2030
6.2.1. Key Highlights
6.2.1.1. Banking & Financial Services
6.2.1.2. Government and Public Utilities
6.2.1.3. Healthcare and Life Sciences
6.2.1.4. IT and Telecom
6.2.1.5. Retail
6.2.1.6. Others
6.2.2. BPS Analysis/Market Attractiveness Analysis
6.3. Asia Pacific Digital Transformation Market Outlook, by Offerings, Value, 2019 - 2030
6.3.1. Key Highlights
6.3.1.1. Fully managed
6.3.1.2. Co-Managed
6.3.2. BPS Analysis/Market Attractiveness Analysis
6.4. Asia Pacific Digital Transformation Market Outlook, by Org Size, Value, 2019 - 2030
6.4.1. Key Highlights
6.4.1.1. Small and Medium-Sized Enterprises
6.4.1.2. Large Enterprises
6.4.2. BPS Analysis/Market Attractiveness Analysis
6.5. Asia Pacific Digital Transformation Market Outlook, by Country, Value, 2019 - 2030
6.5.1. Key Highlights
6.5.1.1. India Digital Transformation Market by Value, 2019 - 2030
6.5.1.2. China Digital Transformation Market by Value, 2019 - 2030
6.5.1.3. Japan Digital Transformation Market by Value, 2019 - 2030
6.5.1.4. Australia & New Zealand Digital Transformation Market Value, 2019 - 2030
6.5.1.5. Rest of Asia Pacific Market by Value, 2019 - 2030
6.5.2. BPS Analysis/Market Attractiveness Analysis
7. Latin America Digital Transformation Market Outlook, 2019 - 2030
7.1. Latin America Digital Transformation Market Outlook, by Components, 2019 - 2030
7.1.1. Key Highlights
7.1.1.1. Solutions
7.1.1.2. Services
7.1.2. BPS Analysis/Market Attractiveness Analysis
7.2. Latin America Digital Transformation Market Outlook, by Verticals, Value, 2019 - 2030
7.2.1. Key Highlights
7.2.1.1. Banking & Financial Services
7.2.1.2. Government and Public Utilities
7.2.1.3. Healthcare and Life Sciences
7.2.1.4. IT and Telecom
7.2.1.5. Retail
7.2.1.6. Others
7.2.2. BPS Analysis/Market Attractiveness Analysis
7.3. Latin America Digital Transformation Market Outlook, by Offerings, Value, 2019 - 2030
7.3.1. Key Highlights
7.3.1.1. Fully managed
7.3.1.2. Co-Managed
7.3.2. BPS Analysis/Market Attractiveness Analysis
7.4. Latin America Digital Transformation Market Outlook, by Org Size, Value, 2019 - 2030
7.4.1. Key Highlights
7.4.1.1. Small and Medium-Sized Enterprises
7.4.1.2. Large Enterprises
7.4.2. BPS Analysis/Market Attractiveness Analysis
7.5. Latin America Digital Transformation Market Outlook, by Country, Value, 2019 - 2030
7.5.1. Key Highlights
7.5.1.1. Brazil Digital Transformation Market by Value, 2019 - 2030
7.5.1.2. Mexico Digital Transformation Market by Value, 2019 - 2030
7.5.1.3. Rest of Latin America Digital Transformation Market by Value, 2019 - 2030
7.5.2. BPS Analysis/Market Attractiveness Analysis
8. Middle East & Africa Digital Transformation Market Outlook, 2019 - 2030
8.1. Middle East & Africa Digital Transformation Market Outlook, by Components, 2019 - 2030
8.1.1. Key Highlights
8.1.1.1. Solutions
8.1.1.2. Services
8.1.2. BPS Analysis/Market Attractiveness Analysis
8.2. Middle East & Africa Digital Transformation Market Outlook, by Verticals, Value, 2019 - 2030
8.2.1. Key Highlights
8.2.1.1. Banking & Financial Services
8.2.1.2. Government and Public Utilities
8.2.1.3. Healthcare and Life Sciences
8.2.1.4. IT and Telecom
8.2.1.5. Retail
8.2.1.6. Others
8.2.2. BPS Analysis/Market Attractiveness Analysis
8.3. Middle East & Africa Digital Transformation Market Outlook, by Offerings, Value, 2019 - 2030
8.3.1. Key Highlights
8.3.1.1. Fully managed
8.3.1.2. Co-Managed
8.3.2. BPS Analysis/Market Attractiveness Analysis
8.4. Middle East & Africa Digital Transformation Market Outlook, by Org Size, Value, 2019 - 2030
8.4.1. Key Highlights
8.4.1.1. Small and Medium-Sized Enterprises
8.4.1.2. Large Enterprises
8.4.2. BPS Analysis/Market Attractiveness Analysis
8.5. Middle East & Africa Digital Transformation Market Outlook, by Country, Value, 2019 - 2030
8.5.1. Key Highlights
8.5.1.1. GCC Digital Transformation Market by Value, 2019 - 2030
8.5.1.2. South Africa Digital Transformation Market by Value, 2019 - 2030
8.5.1.3. Rest of Middle East & Africa Digital Transformation Market by Value, 2019 - 2030
8.5.2. BPS Analysis/Market Attractiveness Analysis
9. Competitive Landscape
9.1. Company Market Share Analysis, 2019
9.2. Company Profiles
9.2.1. IBM
9.2.1.1. Company Overview
9.2.1.2. Key Retailing Partners
9.2.1.3. Business Segment Revenue
9.2.1.4. Ingredient Overview
9.2.1.5. Product Offering & its Presence
9.2.1.6. Certifications & Claims
9.2.2. Cisco Systems
9.2.3. Microsoft Corporation
9.2.4. Sailpoint Technologies
9.2.5. Oracle
9.2.6. DELL
9.2.7. HITACHI
9.2.8. CA Technologies
9.2.9. Okta
9.2.10. Micro Focus
9.2.11. Centrify Corp
10. Appendix
10.1. Research Methodology
10.2. Report Assumptions
10.3. Acronyms and Abbreviations
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2019 - 2022 |
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2023 - 2030 |
Value: US$ Million |
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Verticals Coverage |
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Geographical Coverage |
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Report Highlights |
Market Estimates and Forecast, Market Dynamics, Industry Trends, Competition Landscape, Product-, Application-, Region-, Country-wise Trends & Analysis, COVID-19 Impact Analysis, Key Trends |
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