Global Digital Transformation Market Size, Share, Growth Analysis, By Technology, By Deployment Type, By Organization Size, By Vertical - Industry Forecast 2023-2030

Digital Transformation Market size was valued at USD 577.16 billion in 2021 and is poised to grow from USD 731.13 billion in 2022 to USD 4340 billion by 2030, growing at a CAGR of 26.7% in the forecast period (2023-2030).

Digital transformation enables organizations to address various risks associated with disruption, such as unexpected corporate restructuring, market fluctuations, and geopolitical conditions, which can lead to unpredictable outcomes. Moreover, transitioning from a traditional setup to a digitalized environment facilitates the implementation of advanced technological products and services. By enhancing performance, digital transformation can modify, integrate, and streamline daily business operations, enabling organizations to optimize their processes and utilize resources efficiently. Through the automation of traditional corporate tasks, digital transformation reduces the likelihood of human errors. By leveraging software, businesses can focus on enhancing their brand image, improving customer experiences, and achieving higher customer retention rates. Digital transformation helps companies adapt to evolving technology trends and effectively navigate rapid changes in the business landscape. Additionally, enterprises that invest in analytics, mobility, cloud services, and big data technologies as part of their Digital Experience Platforms (DXP) development will play a significant role in market growth. The US Digital Transformation Market is projected to experience sustainable growth at a CAGR throughout the upcoming forecast year.

Segmented Analysis of the Global Digital Transformation Market

The Digital Transformation Market can be categorized into various segments based on Technology (Cloud Computing, Big Data and Analytics, Mobility/Social Media, Cybersecurity, AI, and IoT), Deployment Type (Cloud and On-Premise), Organization Size (Large Enterprises and Small and Medium-sized Enterprises (SMEs)), and Vertical (BFSI, Retail, Education). Additionally, the market is divided into regions, namely North America, Europe, Asia-Pacific, South America, and MEA.

Analysis by Technology

During the forecast period, the cloud computing segment is expected to witness significant growth. This segment encompasses public, private, and hybrid cloud technologies, offering scalable and on-demand deployment capabilities. The lower implementation costs associated with cloud technologies are anticipated to drive rapid growth in this category, enabling both large enterprises and SMEs, including startups, to leverage these platforms. Moreover, cloud computing is frequently employed to adapt and streamline business processes and enhance customer experiences in response to evolving market dynamics.

Analysis by Organization Size

The large enterprise segment currently dominates the market, accounting for over 55% of the market share in 2021. These companies embark on digital transformation initiatives to achieve cost-effectiveness and seamless execution of business processes. Large enterprises require robust solutions that offer simplicity, flexibility, and data security. With greater financial resources at their disposal, larger organizations can adopt advanced strategies across multiple channels, accelerating transformation in various domains. Furthermore, large enterprises play a crucial role in fostering innovation-driven thinking and promoting digital literacy.

Regional Insights of the Global Digital Transformation Market

North America is expected to hold the largest market share in the digital transformation market. The region's technological advancements serve as key catalysts for market growth in North America. The proliferation of digital transformation companies across different regions also contributes to market expansion.

Market Dynamics

Drivers

Adoption of AI-powered automation

One of the primary factors driving the global digital transformation market is the adoption of AI-powered automation. This technology has demonstrated its effectiveness in various industries, including aviation, healthcare, agriculture, energy, and material handling. AI is not only used for automating tasks but also for diagnosing equipment failures and detecting product irregularities. For example, in the aviation industry, AI and machine learning can predict peak travel periods, assist with passenger check-in, and automate routine maintenance activities. Furthermore, the easy integration of digital platforms with existing business systems such as Customer Relationship Management (CRM), contact centers, and social media platforms is strengthening the market.

Restraints

Concern surrounding data interchange, particularly for industries dealing with personal data

A key challenge for the global digital transformation market is the concern surrounding data interchange, particularly for industries dealing with personal data such as BFSI (Banking, Financial Services, and Insurance) and healthcare. As the demand for data interchange increases, organizations must carefully balance it with risk-mitigation capabilities. However, this concern is expected to diminish in the future as organizations adopt digital transformation software equipped with robust data protection features.

Competitive Landscape

The global digital transformation market exhibits a semi-consolidated structure, indicating potential future market penetration. Collaborations, mergers, and acquisitions are on the rise, making it easier to enter the market. For instance, in April 2019, Smith and Nephew PLC acquired Osiris Therapeutics, Inc. to accelerate the development of their advanced wound management product portfolio, expanding their customer base.

Recent Developments

In April 2022, Salesforce, inc. launched new features to its Customer Data Platform, an AI-powered conversational intelligence platform, including service and marketing cloud capabilities. These features enable service and marketing teams to develop personalized experiences.

In January 2022, Alphabet LLC’s subsidiary Google invested around USD 1 billion by entering into a partnership with Airtel. The partnership aimed to offer affordable access to smartphones and speeding up the usage to cloud-based computing for businesses. The investment helped in the digitalization of India’s small businesses to adopt digital tools.

In April 2021, Oracle and SailGP, the world's finest sailing racing league, have expanded their successful Digital Transformation platform. SailGP uses Oracle Cloud Infrastructure (OCI) to provide real-time data to each of the league's eight national teams, as well as media partners and fans worldwide.

In April 2021, Oracle launched its GoldenGate technology as a highly automated, fully managed cloud service that clients can utilize to help ensure that their valuable data is always available and analyzable in real-time, wherever they need it.

In April 2020, IBM introduced new AI-powered technologies. IBM has introduced unique AI-powered tools to assist the Health and Research Community in the discovery of medical insights and treatments for COVID-19.

Key Market Trends

The retail sector is an emerging vertical that is actively implementing a range of technologies, including cloud computing, big data analytics, DevOps, social networks, and digital storefronts. The need to meet customer expectations and the growing purchasing power of consumers are driving the growth of this segment. Retailers are utilizing e-commerce, online platforms, and apps to attract and retain customers digitally. Digital transformation enables retailers to optimize convenience, save time, and stay connected with customers by focusing on areas such as inventory management, customer service, pricing, merchandising, and supply chain procedures. Cloud-based digital experience platforms are gaining popularity among companies as they reduce investments in physical infrastructure, allow for rapid deployment, and enable access from multiple devices.

Analysis of the Global Digital Transformation Market

Based on the ABIRAW (Advanced Business Intelligence, Research & Analysis Wing), which employs primary exploratory research and robust secondary desk research, the COVID-19 outbreak revealed vulnerabilities in business models across various industries. However, it also created opportunities for companies to digitize and expand their operations beyond geographical boundaries. The adoption and integration of technologies such as cloud computing, AI, analytics, IoT, and blockchain increased during the lockdown period. Although the retail and manufacturing sectors initially experienced a decline in performance during the first and second quarters of 2020, they are expected to witness increased investment as the pandemic is better managed and digital transformation solutions gain traction across different business activities. To access our platform for a free trial, which offers a comprehensive solution for all your data requirements to facilitate faster decision-making, please sign up. Our platform enables you to compare markets, identify prominent competitors, and analyze mega trends influencing market dynamics. Additionally, you will gain access to detailed exclusive matrices.