Global Digital Transformation Market Insights Forecasts to 2032
- The Global Digital Transformation Market Size was valued at USD 1,258.4 Billion in 2022.
- The Market is Growing at a CAGR of 23.4% from 2022 to 2032.
- The Worldwide Digital Transformation Market Size is expected to reach USD 10,571.7 Billion by 2032.
- North America is expected to grow the fastest during the forecast period.
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The Global Digital Transformation Market Size is expected to reach USD 10,571.7 billion by 2032, at a CAGR of 23.4% during the forecast period 2022 to 2032.
Digital transformation is a technique by using which firms integrate technologies into their operations to generate significant improvements. It leverages data to enable automated processes, more rapid and sophisticated decision-making processes, and real-time responses to market events using AI, automation, cloud computing, and other digital technologies. Ultimately, it alters client expectations and opens up new business prospects. They develop efficient processes that streamline functioning models, boost efficacy, and allow staff to make smarter decisions with less time. This approach may entail updating legacy technology so that it can run on current infrastructure and interact with cutting-edge applications. It strengthens structures and procedures and integrates apps and data from expansions or combinations. While the return on investment (ROI) of digital transformation is dependent on a number of events, the appropriate technology may significantly improve how businesses operate and how customers interact with them. Digital transformation likewise provides the infrastructure and capabilities needed to capitalize on rapidly changing technologies that may provide an advantage over other businesses.
Global Digital Transformation Market Report Coverage
|Market Size in 2022:||USD 1,258.4 Billion|
|Forecast Period 2022-2032 CAGR:||23.4%|
|2032 Value Projection:||USD 10,571.7 Billion|
|Historical Data for:||2018-2021|
|No. of Pages:||200|
|Tables, Charts & Figures:||120|
|Segments covered:||By Offering, By Technology, By Deployment, By Industry Verticals, By Region and COVID-19 Impact Analysis.|
|Companies Covered:||EY, Broadcom, Equinix, Oracle, SAP, Baidu, Adobe Systems, Microsoft, Alibaba, IBM, Google, Marlabs, Salesforce, Cognizant, Accenture, Tibco Software, Alcor Solutions, Smartstream, Kissflow, eMudhra, ProcessMaker, Brillio, Aexonic Technologies, CloudAngles, Magnetar IT, Scitara, Intrinsic, Soundful and other key vendors.|
|Pitfalls & Challenges:||COVID-19 Empact, Challenge, Future, Growth, & Analysis|
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The rapidly growing popularity of cutting-edge technologies such as quantum computing, cyber security, big data analytics, IoT, and cloud has encouraged creativity and transformation in the context of business, leading to higher income and productivity. Additionally, the growing adoption of IoT-based devices and goods in daily life, the increased use of mobile devices and apps, and the rising reliance of businesses on IoT-based products and solutions boost the digital transformation market growth. Also, the increasing emphasis of the retail, BFSI, and automotive sectors on IoT-based products and solutions is likely to offer the digital transformation market significant growth prospects. Furthermore, as the number of remote workers grows, more enterprises carry out operations via email and collaboration & digital technologies, which is also predicted to boost the digital transformation market development over the forecast period.
AI, big data, and BI are becoming increasingly utilized by companies to acquire real-time data, gain valuable insight, perceive customer requirements, and increase overall productivity. Market participants place a high value on providing sophisticated technology-enabled market solutions in order to increase corporate profitability and drive market expansion. Digital technologies are accelerating the transition from old to present-day and cost-effective systems. Some firms might employ digital transformation as an IT strategy to obtain a competitive edge. Certain others will regard it as an aspect of their plan to remain relevant by addressing rising client needs. The organization expects rapid, precise, and real-time feedback from big data analysis in order to develop new goods and services or enhance their current ones and acquire a competitive advantage. Individuals may operate more productively from anywhere because of digital solutions that offer seamless collaboration, remote work capabilities, and real-time data acquisition. Furthermore, digital transformation enables better client experiences through individualized relationships, shorter wait times for responses, and customized solutions.
By Offering Insights
The solutions segment is dominating the market with the largest revenue share over the forecast period.
On the basis of offering, the global digital transformation market is segmented into the solutions and services. Among these, the solutions segment is dominating the market with the largest revenue share of 58.6% over the forecast period. This might be ascribed to the increasing adherence to digital transformation solutions by enterprises in order to modernize processes and fulfill customer demand. Consequently, organizations must always seek methods to enhance the end-user experience. This could be accomplished through improved on-demand training, data migration to cloud services, AI, and other techniques. Several companies are introducing Internet of Things (IoT) and Artificial Intelligence (AI)-based solutions for digital transformation. Additionally, the market's adoption of analytical tools helps companies improve operational efficiency, and output, and reduce equipment downtime.
By Technology Insights
The cloud computing segment is witnessing significant CAGR growth over the forecast period.
On the basis of technology, the global digital transformation market is segmented into cloud computing, big data & analytics, blockchain, cybersecurity, AI, IoT, and others. Among these, the cloud computing segment is witnessing significant CAGR growth over the forecast period. Cloud computing digital transformation is an evolutionary process that transforms the way businesses function by integrating cloud-based technology and services to optimize processes, increase flexibility, and drive ingenuity. It entails moving conventional on-premises systems and applications to the cloud, implementing cloud-native architectures and services, and gaining relevant knowledge through data analytics and artificial intelligence. This transformation enables firms to achieve increased operational efficiency, lower expenses, and adaptability while enabling uniform collaboration, better customer experiences, and the ability to quickly respond to changing market needs.
By Deployment Insights
The on-premise segment is expected to hold the largest share of the Global Digital Transformation Market during the forecast period.
Based on the deployment, the global digital transformation market is classified into hosted and on-premise. Among these, the on-premise segment is expected to hold the largest share of the Digital Transformation market during the forecast period. On-premise technologies provide superior data protection, making it more straightforward for end-user businesses to abide by a variety of government standards. Furthermore, on-premise digital transformation solutions provide enterprises with greater control over critical data. However, the growing emphasis of end-user firms on cloud-based digital transformation solutions due to their low operational costs and diversified pricing structures is likely to limit market growth over the projection period.
By Industry Verticals Insights
The BFSI segment accounted for the largest revenue share of more than 34.2% over the forecast period.
On the basis of industry verticals, the global digital transformation market is segmented into automotive, BFSI, retail, government, healthcare, IT & telecom, manufacturing, energy & utilities, education, agriculture, and others. Among these, the BFSI segment is dominating the market with the largest revenue share of 34.2% over the forecast period. This can be attributed due to the shifting attention of financial institutions and banks toward offering enriched consumer experiences to increase their customer base and improve brand identity. The increased focus of banks on providing seamless technical support and assistance to increase customer retention rate is driving segment growth. The increasing acceptance of remote working has spurred market expansion in the BFSI business.
North America dominates the market with the largest market share over the forecast period.
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North America is dominating the market with more than 38.7% market share over the forecast period. North America has one of the most mature markets for digital transformation, driven largely by early technology adoption, significant investments in R&D, and the presence of global tech giants like Microsoft, Google, and Apple. In addition, various sectors, including finance, healthcare, retail, and manufacturing, are pushing for digital transformation to enhance efficiency, improve customer experiences, and create new revenue streams. North America, particularly the United States, is home to major technology hubs such as Silicon Valley, which plays a pivotal role in driving global tech innovations. Furthermore, significant investments in research & development, startups, and digital infrastructure contribute to the region's leadership position in digital transformation. Moreover, concerns related to data privacy, cybersecurity, and regulatory compliances can sometimes act as barriers to rapid digital transformation.
Asia Pacific, on the contrary, is expected to grow the fastest during the forecast period. The Asia Pacific region is witnessing one of the fastest rates of digital transformation, driven by growing internet penetration, digital-native startups, and government initiatives promoting digitalization. Given the vast population and rising middle class, there's a massive potential for digital services and solutions. E-commerce, mobile banking, and digital payments have seen explosive growth, particularly in countries like China and India.
The Europe market is expected to register a substantial CAGR growth rate during the forecast period. Europe tends to focus on a more holistic digital transformation that emphasizes not only economic gains but also societal benefits like sustainability, inclusivity, and privacy. Furthermore, the need to balance innovation with regulations, and the diverse digital maturity levels among Eastern and Western European countries, is expected to offer numerous market dynamics.
List of Key Market Players
- Adobe Systems
- Tibco Software
- Alcor Solutions
- Aexonic Technologies
- Magnetar IT
Key Market Developments
- On June 2023, EPAM Systems, Inc., a leading digital transformation services and product engineering company, announced a strategic, global partnership with Google Cloud to develop and deploy Artificial Intelligence (AI)-first Google Cloud solutions to help enterprises overcome operational challenges and drive transformational growth. Through this partnership EPAM will expand its global, cloud-native engineering and integration services and introduce targeted vertical solutions and managed services around Google Cloud AI solutions, including Vertex AI, Generative AI App Builder, Model Garden and more.
- On April 2023, Kyndryl, the world's largest provider of IT infrastructure services, and Compass Group España, a leading foodservice company, announced their collaboration to accelerate its digital transformation using the advantages of cloud technology. The new cloud platform, which runs on Amazon Web Services (AWS) and is managed by Kyndryl, provides Compass Group España the flexibility needed to create new sales and customer service, operations and human resources applications that improve employee satisfaction and customer experience.
This study forecasts revenue at global, regional, and country levels from 2020 to 2032. Spherical Insights has segmented the Global Digital Transformation Market based on the below-mentioned segments:
Digital Transformation Market, Offering Analysis
Digital Transformation Market, Technology Analysis
- Cloud Computing
- Big Data & Analytics
Digital Transformation Market, Deployment Analysis
Digital Transformation Market, Industry Verticals Analysis
- IT & Telecom
- Energy & Utilities
Digital Transformation Market, Regional Analysis
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- South America
- Rest of South America
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of Middle East & Africa
Frequently Asked Questions (FAQ)
1. What is the market size of the Digital Transformation market?The Global Digital Transformation Market is expected to grow from USD 1,258.4 billion in 2022 to USD 10,571.7 billion by 2032, at a CAGR of 23.4% during the forecast period 2022-2032.
2. Which are the key companies in the market?EY, Broadcom, Equinix, Oracle, SAP, Baidu, Adobe Systems, Microsoft, Alibaba, IBM, Google, Marlabs, Salesforce, Cognizant, Accenture, Tibco Software, Alcor Solutions, Smartstream, Kissflow, eMudhra, ProcessMaker, Brillio, Aexonic Technologies, CloudAngles, Magnetar IT, Scitara, Intrinsic, Soundful and others.
3. Which segment dominated the Digital Transformation market share?The BFSI segment in industry vertical type dominated the Digital Transformation market in 2022 and accounted for a revenue share of over 34.2%.
4. Which region is dominating the Digital Transformation market?North America is dominating the Digital Transformation market with more than 38.7% market share.
5. Which segment holds the largest market share of the Digital Transformation market?The solutions segment based on offerings holds the maximum market share of the Digital Transformation market.
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