Global Digital Transformation Market - 2023-2030

Overview

Global Digital Transformation Market reached US$ 578.7 billion in 2022 and is expected to reach US$ 3035.5 billion by 2030, growing with a CAGR of 23.0% during the forecast period 2023-2030.

Digital transformation helps businesses to grow globally and respond to market changes effectively. Organizations embrace digital transformation to leverage these technologies for competitive advantages. Evolving consumer expectations and preferences drive the need for businesses to deliver seamless and personalized digital experiences which further helps to boost market growth of digital transformation.

Growing product launches by major key players help to boost market growth over the forecast period. For instance, on June 29, 2022, Siemens AG, launched siemens xcelerator, an open digital business platform to accelerate digital transformation. It includes a curated portfolio of Internet of Things (IoT) enabled hardware, software and digital services from across Siemens and certified third parties.

Growing adoption of digital transformation in North America helps to boost regional market growth over the forecast period 2023-2030. For instance, on October 26, 2021, PepsiCo accelerated digitalization with the launch of digital hubs in North America. The hub helps to create more than 500 new, high-caliber data and digital jobs over the next 3 years. the Dallas-based Hub supports the development of global solutions with a focus on meeting the needs of PepsiCo Foods North America and PepsiCo Beverages North America.

Dynamics

5G and IoT Contribute to the Advancement of Digital Transformation

Cloud computing provides organizations with scalable and flexible infrastructure resources. The allows businesses to adapt quickly to changing demands, scale operations and deploy digital solutions more efficiently. According to the data published in a recent report, cloud computing adoption is growing rapidly with cloud-specific spending expected to grow at more than 6 times the rate of general IT spending through 2020. Large organizations successfully implemented specific software-as-a-service solutions and adopted a cloud-first strategy for new systems.

Global adoption of 5G is increasing, according to a report released in 2023 by Ericsson India Limited. India rises as an estimated 31 million consumers are anticipated to make the switch to 5G phones by 2023. 5G and IoT are changing several industries, such as manufacturing, transportation, healthcare and agriculture. With the use of these technologies, companies can improve productivity, streamline operations and foster creativity which helps to boost market growth of the digital transformation.

Growing Usage of Mobile Devices and Apps

Smartphones and tablets, provide users with constant connectivity and enable seamless access to digital services, fostering the need for businesses to transform their processes and interactions to meet the expectations of an always-connected audience. Many businesses are adopting a "mobile-first" approach in their digital strategies. The approach involves prioritizing the development of digital solutions, platforms and services with a primary focus on mobile user experiences. Digital transformation efforts often center around optimizing processes for mobile devices.

According to the data given by Kepios company, 5.30 billion people globally use the internet in Q4 of 2023 which is around 65.7 percent of the world's total population. the number of cellular connections with smartphones increasing rapidly. Around 84% of the mobile phones in use globally. The growth of e-commerce, particularly mobile shopping, is driving digital transformation in the retail sector which help to boost market growth over the forecast year.

Lack of Data Privacy and Security Concerns

Growing consumer concerns about cyberattacks are major factors that hamper the market growth of digital transformation. Growing public awareness about data privacy issues and consumers are more conscious about how their data is handled. Some of the businesses that fail to address these concerns risk damaging their reputation and losing customer trust, hampering the adoption of digital services.

According to the data given by a pharmaceutical technology survey in 2020, digital privacy and data security are the top concerns for major businesses. In the Asia-Pacific around 50% of the respondents mentioned that digital privacy and data security are their main concerns in 2020. Security incidents resulting from data breaches cause severe reputational damage to organizations. A tarnished reputation leads to customer attrition, loss of business opportunities and a negative impact on overall market growth.

Segment Analysis

The global digital transformation market is segmented based on component, deployment model, technology organization size, end-user and region.

Growing Adoption of the Digital Transformation Services Globally by Major Businesses

Based on the components, the digital transformation market is divided into solutions and services. The services segment accounted for 1/3rd of the market share in the global digital transformation market. Digital transformation involves comprehensive changes in processes, technologies and organizational culture. Many businesses find the process complex and they require specialized expertise to navigate the challenges. Digital transformation services providers offer the knowledge and experience needed to guide organizations through this transformation journey.

Major key players in the market follow merger and acquisition strategies to expand their business. For instance, on November 09, 2023, Infosys, an Indian IT services company and AWS partnered together to provide digital transformation services to financial institutions. The companies entered into a 3 years partnership involving joint investments in go-to-market strategies and delivering their capabilities across Europe, Middle East and Africa.

Geographical Penetration

Growing Adoption of the Digital Transformation Solutions in North America

North America accounted largest market share in the global digital transformation market due to the growing technological advancement in artificial intelligence and the Internet of Things (IoT). The growing adoption of high-speed internet and mobile connectivity in U.S. helps to boost the regional market growth of digital transformation. North America increasingly adopting digital transformation in the banking sector. For instance, on October 23, 2023, Veritran, a preeminent provider of global financial technology solutions, unveiled Banking Experience Packages to Support Community Banks and Credit Unions' Digital Transformation at Money20/20 in Las Vegas.

Major key players in the region are extending their digital transformation businesses in North America to meet the growing demand from consumers for digital transformations. For instance, on August 06, 2021, GFT, an IT service and software engineering firm expanded its digital transformation services in North America. The company follows an agile development approach, versus a waterfall methodology to offer digital transformation services.

Competitive Landscape

The major global players in the market include: Microsoft, IBM, SAP SE oracle, Google, Cognizant, Hewlett Packard Enterprise Development LP, Adobe, Accenture and HCL Technologies Limited.

COVID-19 Impact Analysis

The COVID-19 pandemic accelerated the adoption of digital technologies as businesses sought to adapt to remote work, changing consumer behaviors and disruptions in traditional business models. Organizations expedited digital transformation initiatives to enhance agility and resilience. The sudden shift to remote work prompted increased investment in technologies that enable remote collaboration, communication and productivity. Digital transformation efforts focused on implementing and optimizing solutions for virtual collaboration.

The closure of physical stores and restrictions on in-person services led to a surge in e-commerce and the adoption of digital platforms. Businesses invested in digital channels, online sales and contactless services to meet changing consumer preferences. Disruptions in global supply chains prompted organizations to invest in digital solutions for supply chain visibility, resilience and optimization.

Russia-Ukraine War Impact Analysis

Geopolitical events contribute to global economic uncertainty. Uncertain economic conditions influence businesses' decisions on technology investments, including digital transformation initiatives. Geopolitical tensions and conflicts lead to disruptions in global supply chains. The digital transformation market relies on various technologies and components and disruptions in the supply chain impact the availability and cost of these technologies.

Certain industries were directly affected by geopolitical events. For example, industries with strong ties to the regions involved or those facing economic challenges due to the conflict reassess their digital transformation strategies and investments. Organizations reevaluate their technology investments and prioritize areas that are critical for business continuity and resilience. Digital transformation initiatives that enhance agility, remote collaboration and operational efficiency gain increased attention.

By Component

• Solution
• Services

By Deployment Model

• On-Premise
• Cloud

By Technology

• Industrial Robotics
• Internet of Things
• 3D Printing/Additive Manufacturing
• Advanced Human Machine Interface
• Big Data and Analytics
• Machine Learning
• Artificial Intelligence
• Others

By Organization Size

• Small and Medium Enterprises (SMEs)
• Large Enterprises

By End-User

• Banking Financial Services and Insurance (BFSI)
• Healthcare
• Telecommunication and IT
• Automotive
• Education
• Retail and Consumer Goods
• Media and Entertainment
• Manufacturing
• Government
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On February 07, 2023, Schneider Electric, a major key player in the digital transformation of energy management and automation launched an industrial digital transformation consulting and deployment service to accelerate successful digital transformation strategic planning and implementation for industrial businesses.
• On May 15, 2023, HCLTech expanded its partnership with SAP to drive digital transformation. According to the collaboration, HCLTech has become a customer of and a global strategic service partner for SAP SuccessFactors Human Experience Management Suite.
• On October 25, 2022, Cognizant collaborated with Qualcomm Technologies Inc. to launch 5G experience center in Atlanta invite clients for digital transformation. It combines Cognizant's experience in 5G, IoT, cloud and data analytics with Qualcomm Technologies.

Why Purchase the Report?

• To visualize the global digital transformation market segmentation based on component, deployment model, technology organization size, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of digital transformation market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global digital transformation market report would provide approximately 77 tables, 86 figures and 228 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies