Advancement in technologies, emergence of new apps, penetration of new mobile devices, and adoption of cloud computing services are the factors responsible for the growth of the digital transformation market in different industries.
The Global Digital Transformation Market was valued at USD 340.0 billion in 2020, and it is expected to reach USD 1409.4 billion by 2027, with a CAGR of 22.7%, during the forecast period-2021-2027.
We live in the era of digitalization, where most of the business and related work are done using digital technologies. The process of using digital technologies to modify or create new work aspects, culture, focus on customer experiences and changes as per the market requirements is known as digital transformation. For instance, in the era of 4.0G, the sales business, carried out by medical representative is getting digital, where calls are done using tabs and laptops, more virtual detailing to the doctors and this technology showcase different perspective of doing business using digital platform.
Digital platform has the provision where, ideas and feedbacks from customer are considered in constructive manner and companies tend to take step for revisiting the site, answering the queries and doing changes. This also provide more customer personalized experience. One of the biggest examples of digitalization or digital transformation is Netflix. Netflix started with a mail order service and slowly entered into a big brick-and-mortar video rental business. Digital invention made broad scale streaming video possible. There has been huge digital transformation for Netflix which provided the ability not only to stream online videos directly to the customers but also gained unprecedented insights into viewing customer’s preferences and habits.
Digital transformation is broadly segmented on the basis of technology, end user, industry size and region. Based on technology internet of things held maximum market share in 2020 and expected to increase more during the forecast period due to increase in adoption of internet services across world. Based on end user, banking and financial services are expected to dominate digital transformation market due to rising adoption of online services and increasing focus on customer centric approach. North America accounted for the highest market share in 2020 due to increase in industrialization and development in advanced technologies across the region.
The use of advanced technology like cloud computing, big data analytics, emerging social media and new Apps, internet of things led to innovation and transformation of the technology, which ultimately triggers the growth in the business ecosystem. Adoption of new technology offers endless innovative opportunities to grow and gain digital customer experience. This factor led to increase in demand for digital transformation across all the industries.
On contrary, lack of finances and planning for proper execution of digitalization is considered to be major challenge for companies while implementing digital transformation. This may lead to delay in services, cancellation of projects, which directly affect the growth of the market. Digital transformation requires proper planning for capital and execution.
Some of the key players operating in the digital transformation industry are Accenture, Adobe, Alcor Solutions, Cognizant, Dell EMC, Microsoft, IBM, SAP, EMC, Google, Marlabs, Broadcom, Equinix, Oracle, HCL Technologies, and Tibco software.
The Global Digital Transformation Market is segmented on the basis of Technology, End User, Industry Size, and by Region.
By End User
By Industry Size
By Geographical Region
The key players operating in the market are: