According to Precedence Research, the global digital transformation market size was estimated at US$ 484.44 billion in 2021 and is expected to reach over US$ 1,692.40 billion by 2030, growing at a notable CAGR of 14.9% from 2021 to 2030.
The rising penetration of industry 4.0, the demand for the automated and digital technologies across the manufacturing industry has surged rapidly in the past few decades. The manufactures are increasingly adopting the latest technologies to automate and digitalize the process to enhance the product quality and productivity. The rising demand for the latest and advanced technologies such as big data analytics, artificial intelligence, internet of things, and cloud computing across various business enterprises is significantly driving the growth of the global digital transformation market. These latest technologies helps to integrate intelligence into business activities and promotes customer engagement while offering operational efficiency. The rising penetration of internet, increasing adoption of smartphones, and developing IT and telecommunications infrastructure across the globe are some of the major indicators that boosts the growth of the digital transformation market across the globe. The companies across all the industries are heavily investing to increase their digital presence. Therefore, the shift from traditional business to digital business is significantly augmenting the growth of the global digital transformation market.
Digital transformation allows the business entities to enhance operations, create a brand reputation, improves customer experiences, and improves the customer retention. The adoption of the digital technologies can help the businesses to counter any change in the technical landscape and can resist the shifts in industry. For instance, the digital businesses were highly profitable during the outbreak of the COVID-19 pandemic. Most of the businesses across various industries suffered huge losses due to the lockdown situation and they were forced to invest heavily on the digitization of their operations. Therefore, the outbreak of the COVID-19 pandemic has positively and significantly impacted the growth of the global digital transformation market. The rapid adoption of the wireless connectivity, internet, and cloud computing is expected to change the way different industries used to operate. The BFSI, healthcare, retail, education, and pharmacies are some of the industries that are estimated to foresee a drastic change due to the growing importance of internet and smart devices.
Scope of the Digital Transformation Market
|Market Size||US$ 1,692.40 Billion by 2030|
|Growth Rate||CAGR of 14.9% from 2021 to 2030|
|Largest Market||North America|
|Fastest Growing Market||Asia Pacific|
|Forecast Period||2021 to 2030|
|Segments Covered||Technology, End Use, Deployment, Region|
|Companies Mentioned||Dell EMC, Cognizant, Accenture PLC, Google, Capgemini, Siemens AG, Cognex Corporation, IBM Corporation, Microsoft Corporation, Deloitte Touche Tohmatsu Ltd., PricewaterhouseCoopers, Hewlett-Packard Company, SAP SE, Oracle Corporation, Adobe Systems Inc., HakunaMatata Solutions, ScienceSoft Inc., SumatoSoft, Space-O Technologies|
Based on the technology, the internet of things (IoT) dominated the global digital transformation market in 2020. This is attributed to the increased adoption of the internet of things technology across various industry verticals such as automotive, healthcare, and manufacturing industries. The digital transformation helps these industries to enhance their operational efficiency and improve their system error timings. Moreover, the healthcare sector is witnessing rapid adoption of the IoT due to the rising government initiatives to digitalize the hospitals and for the development of smart hospitals across the globe.
On the other hand, the blockchain is estimated to be the most opportunistic segment during the forecast period. The blockchain technology offers certain benefits to the businesses such as enhanced security, higher transparency, instant traceability, facilitates automation, and increases speed and efficiency. These benefits of the blockchain is creating a huge demand across various industries such as healthcare, insurance, banking, entertainment, travel and logistics, and retail. Therefore, the blockchain is expected to grow at the highest CAGR during the forecast period.
End Use Insights
The BFSI segment dominated the global digital transformation market, garnering a market share of around 27% in 2020. The top players in the BFSI industry are adopting the digital technologies to enhance their services and offer improved customer experiences and customer engagement. The increased adoption of the online and digital payment platforms across the globe has forced the BFSI industry to invest increasingly on the digital transformation.
On the other hand, the healthcare is estimated to be the fastest-growing segment during the forecast period. The rising prevalence of chronic diseases and growing geriatric population across the globe is resulting in the higher volume of patients. The rising adoption of the telehealth, rising implementation of various digital technologies in the hospitals, and development of smart hospitals are some of the most prominent factors that are estimated to drive the growth of this segment.
The on-premises segment accounted for market share of around 60% and dominated the global digital transformation market in 2020. The on-premises deployment offers easy customization, which is a major factor behind the growth of this segment. Moreover, the easy compliance with the government regulations and high security associated with the on-premises deployment has fueled the market growth.
The cloud computing is estimated to be the most opportunistic segment during the forecast period. The cheaper cost, ease of data accessibility, and easy data transfer are the significant features of the cloud computing which is expected to drive the growth of this segment during the forecast period.
North America garnered a market share of around 35% and dominated the global digital transformation market in 2020. The higher demand and adoption rate of the digital and innovative automation technologies in North America has fostered the growth of the market. The increased usage of the online payment systems in the retail sectors has significant contributions in the growth of the North America digital transformation market. Moreover, the increasing government initiatives to promote the adoption of the automation and digital technologies in the healthcare, automotive, and pharmaceutical sector is further fueling the North America digital transformation market. The rapid penetration of the e-commerce in the Canada and US is expected to sustain the significance of the region in the forthcoming years.
On the other hand, Asia Pacific is estimated to be the fastest-growing market in the foreseeable future. Asia Pacific is witnessing rapid industrialization and urbanization. The higher adoption of the automation and the digital technologies across various industries is expected to drive the market growth. Moreover, the rising government investments in the countries like China and India for the development of infrastructure and the development of smart cities is expected to drive the demand for the digital transformation systems in the region.
Key Market Developments
The digital transformationmarket is moderately fragmented with the presence of several local companies. These market players are competing to strengthen their market position by adopting strategies, such as partnerships, acquisitions, new product launches, and collaborations. Companies are also spending on the development of enhanced and efficient products. Moreover, they are also focusing on maintaining competitive pricing.
Some of the prominent players in the global digital transformation market include:
Segments Covered in the Report
By End User
No cookie-cutter, only authentic analysis – take the 1st step to become an Precedence Research client