South Korea Digital Transformation Market Size, Share, and COVID-19 Impact Analysis, By Type (Solution, Service), By Deployment Mode (Cloud-based, On-premises), and South Korea Digital Transformation Market Insights, Industry Trend, Forecasts to 2035

South Korea Digital Transformation Market Insights Forecasts to 2035

• The South Korea Digital Transformation Market Size was Estimated at USD 14,111.3 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 18.23% from 2025 to 2035
• The South Korea Digital Transformation Market Size is Expected to Reach USD 88,998.5 Million by 2035

According to a research report published by Spherical Insights and Consulting, The South Korea Digital Transformation Market Size is anticipated to reach USD 88,998.5 Million by 2035, growing at a CAGR of 18.23% from 2025 to 2035. The regional market is largely being driven by the expansion of wireless communications and the growing number of online banking services.  

Market Overview

The South Korea digital transformation market encompasses the incorporation of digital technologies into all facets of public and commercial services, which is radically changing how businesses function and provide value to their clients. Technological developments including artificial intelligence (AI), the Internet of Things (IoT), big data, cloud computing, and smart infrastructure are at the forefront of this shift. Additionally, cloud services are becoming more and more popular as companies look for flexible and scalable IT solutions. Hybrid and multi-cloud environments, backed by both local and big providers like AWS and Google Cloud, are becoming more and more popular. Additionally, government programs are investing in data infrastructure, such as cloud computing and artificial intelligence, with the goal of speeding up digital transformation. Moreover, the pandemic sped up the rise of digital transformation in a number of industries, forcing businesses to use digital tools and procedures in order to continue operating. Customers started purchasing online due to the increase in e-commerce, which made advancements in digital infrastructure, payment methods, and cybersecurity necessary.

Report Coverage

This research report categorizes the market for the South Korea digital transformation market based on various segments and regions and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the South Korea digital transformation market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the South Korea digital transformation market.

Driving Factors

The flourishing information and communication technology (ICT) infrastructure in South Korea is driving trends in digital transformation in a number of industries, including manufacturing, smart cities, healthcare, and finance. In addition, government-led programs like the Digital New Deal strengthen South Korea's leadership in digital innovation, supporting the expansion of the market nationwide. Additionally, businesses are using these trends to improve customer satisfaction, streamline processes, and maintain market competitiveness. Digital transformation acts as a catalyst for economic growth, efficiency, and sustained innovation as South Korea enters the smart technology era. These factors are anticipated to drive market expansion in the upcoming years.

Restraining Factors

The digital transformation of the South Korean market is hampered by a number of factors. These include issues with data privacy, regulatory barriers, cybersecurity, a shortage of qualified personnel, and implementation costs. Challenges also include the requirement to integrate new solutions with legacy systems and digital trade barriers.

Market Segmentation

The South Korea Digital Transformation Market share is classified into type and deployment mode

• The solutions segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The South Korea digital transformation market is segmented by type into solution and service. Among these, the solutions segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. This category includes a broad range of technologies that are essential to updating company processes in a variety of industries, including cloud computing, artificial intelligence (AI), the Internet of Things (IoT), and big data analytics.

• The cloud-based segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The South Korea digital transformation market is segmented by deployment mode into cloud-based, on-premises. Among these, the cloud-based segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. The nation's considerable emphasis on big data, AI, and IoT integration. Cloud solutions are being adopted by businesses more frequently due to its scalability, cost effectiveness, and improved security.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the South Korea digital transformation market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market

List of Key Companies

• IBM Corporation
• Korea Quantum Computing
• Oracle Corporation
• Samsung Electronics
• SAP SE
• NAVER Cloud Corp.
• Microsoft Corporation
• Others

Recent Developments:

• In March 2024, Naver and HD Hyundai had collaborated to accelerate HD Hyundai's digital transformation. As part of the partnership, HD Hyundai's extensive shipbuilding and ocean engineering database, which contained more than 200 million data points, had been analyzed using Naver's sophisticated language model, HyperClova X. The objective had been to create cutting-edge AI services that would improve domain knowledge and operational effectiveness. The partnership also had sought to transfer HD Hyundai's existing online infrastructure to Naver's powerful cloud platform.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at South Korea, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the South Korea digital transformation Market based on the below-mentioned segments:

South Korea Digital Transformation, By Type

• Solution
• Service

South Korea Digital Transformation, By Deployment Mode

• Cloud-based
• On-premises