Digital Transformation Industry Overview
The global digital transformation market size was evaluated at USD 608.72 billion in 2021 and is expected to reach USD 3,810.05 billion by 2030, registering a CAGR of 23.1% from 2022 to 2030
The COVID-19 pandemic posed a significant test for the entire world to endure the business congruity in between all the social distancing, lockdown, work from home, and other challenges. While few organizations were ready to face the challenges others were not due to a lack of digital strategy other important tools or infrastructure required for smooth functioning. Despite all the objections COVID-19 has delivered to personal, professional, and community life, it also gave new opportunities to businesses. Innovation, when utilized appropriately, upgrades proficiency and usefulness, the COVID-19 scenario offers the right opportunity for organizations to deal with their digital channels.
Gather more insights about the market drivers, restrains and growth of the Global Digital Transformation market
Digital transformation helps organizations to cope with various risks associated and handling disruption such as rebuilding corporate, marketplace fluctuation, and geopolitical conditions that are unforeseen and can prompt erratic outcomes. Moreover, moving from conventional to new digitalized setup supports the introduction of many new technically advanced products and services. Digital transformation can transform, integrate and simplify daily business operations by enhancing performance efficiently. It helps associations in organizing their operations to save time and effort and efficiently make use of resources. Digital transformation supplants traditional business processes with automation, and hence reduces the chance of errors by users.
Digital transformation through the implementation of software lets organizations focuses on further developing the brand reputation by enhancing customer experience and attaining higher customer retention ratios. Digital transformation helps organizations in adjusting to the progressing technological scenario and can handle abrupt changes in the business. All the more significantly, a significant piece of the market growth will come from organizations putting resources into analytics, mobility, cloud services, and big data technologies as a component of their development of Digital Experience Platforms (DXP).
In these recent years, the world witnessed numerous developments that took place in the field of technology, for instance, predictive analysis, blockchain, quantum computing, Artificial Intelligence (AI), and Machine Learning (ML), among others. Organizations are producing a tremendous amount of data for which they require technological support such as machine learning algorithms and powerful analysis tools to develop insights. This is one of the key factors promoting the adoption of technologies, and additionally, it makes the workflow more systematic for daily operations.
Significant difficulties that organizations face during the execution of digital transformation include the absence of systematic planning and budget allocation. To embrace the digital transformation journey, a company will require huge capital investment for the acquisition of such technological advancements and a suitably skilled team for the smooth execution process. Subsequently, the whole process demands a huge capital investment, which might prompt lower benefits at first, but over the long run, this huge investment could be one of the key reasons for a successful business. The absence of proper budget allocation hampers organizational decision-making power and makes the transformation initiative uneasy. To conquer this, organizations must come up with a strong strategy for the long term and have a sound capital arrangement.
Digital Transformation Market Segmentation
Based on the Solution Insights, the market is segmented into Analytics, Cloud Computing, Mobility, Social Media & Others
- The analytics segment accounted for the largest market share of over 30% in 2021, attributable to the high demand to integrate enormous volumes of business information to generate powerful insights.
- The cloud computing segment is expected to show considerable growth over the forecast period. The cloud segment includes public, private, and hybrid cloud platforms which offer easy deployment and scalability on demand.
Based on the Service Insights, the market is segmented into Professional Services and Implementation & Integration
- The professional service segment accounted for a revenue share of over 70% in 2021. Professional service is a mix of consulting and managed services that support businesses of all sizes across varied industries.
- The implementation and integration service segment is also expected to grow at a considerable rate as organizations are anticipated to reach out to implementation service companies for seamlessly deploying digital solutions.
Based on the Deployment Insights, the market is segmented into Hosted and On-premise
- The hosted segment is expected to expand at the highest CAGR of 26.6% owing to the increasing use of mobile devices and advancements in information sharing technologies.
- The on-premises segment accounted for a revenue share of over 50% in 2021. Many organizations have selected on-premise deployment as it offers plausible choices for the extreme customization of the product.
Based on the Enterprise Size Insights, the market is segmented into Large Enterprise and Small & Medium Enterprise
- The large enterprise segment holds the largest market share of over 55% in 2021. These enterprises are embracing the digital transformation journey as digital transformation offers cost-effectiveness and smooth execution of the business process.
- The Small and Medium Enterprise (SME) segment is expected to register the highest CAGR of 24.6% over the forecast period.
Based on the End-use Insights, the market is segmented into BFSI, Government, Healthcare, IT & Telecom, Manufacturing, Retail and Others
- The BFSI segment accounted for the largest market share of over 25% in 2021, this growth can be attributed to the shifting attention of banks and other financial institutions toward offering enhanced experience since products and services within the industry are becoming commoditized.
- Based on the adoption rate of new emerging technologies, retail is one of the emerging verticals that is implementing various technologies, such as cloud computing, big data analytics, DevOps, social networks, digital stores, and others.
Based on the Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- North America held the largest revenue share of over 30% in 2021 owing to the increased usage of the internet and the high adoption of different types of online payment modes.
- The Asia Pacific region is supposed to arise as the fastest developing region over the next eight years, due to the rapid increase in the number of SMEs and the expanding service sector.
Market Share Insights:
- March 2021: The U.K. government decided to set out an initiative known as Government Digital Service (DSG) which offers a simple digital identity solution and helps to “create a single sign-on” that works for everyone.
- January 2021: SAP SE launched “Rise with SAP” a digital solution which will help enterprises and customers to embrace digital transformation technologies.
Key Companies Profile:
Some prominent players in the global Digital Transformation market include
- Accenture plc
- Apple Inc.
- Adobe Systems Incorporated
- CA Technologies
- Dell EMC
- Hewlett Packard Enterprise Co.
- International Business Machines Corporation
- Microsoft Corporation
- Kellton Tech Solutions Ltd.
- Google Inc.
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