The net worth of the market share of digital transformation is predicted to reach from USD 930.73 billion in 2023 to over USD 10,401.77 billion by 2033. The market is expected to register a CAGR of 27.3% from 2023 to 2033.
The market growth is influenced by the rapid adoption of advanced technologies such as artificial intelligence, the Internet of Things, cloud computing, and others. Businesses are switching from traditional business models to technologically advanced solutions designed to help the global economy.
Digital technologies play a crucial role in the emerging era of customer engagement for businesses and government organizations. This is the result of rapid technological advancements and a constantly changing regulatory climate.
To encourage organizational growth, businesses are also experimenting with advanced technologies such as big data, cloud computing, artificial intelligence, and others. Digital technologies have led to the evolution of modern business strategies away from traditional business models. AI and IoT-based solutions are being launched by the leaders in digital transformation.
For instance, Siemens launched the Xcelerator platform for digital transformation in June 2022 to accelerate digital technology. Using Siemens Xcelerator, scalable business operations can be easily managed. The platform combines hardware, software, and digital technology services based on the Internet of Things.
| Attributes | Details |
|---|---|
| Digital Transformation Market Value (2023) | USD 930.73 billion |
| Digital Transformation Market Expected Value (2033) | USD 10,401.77 billion |
| Digital Transformation Market Projected CAGR (2023 to 2033) | 27.3% |
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As per FMI, the digital transformation market is expected to reach USD 10401.77 billion by 2033. In the first half of 2022, the global market recorded a CAGR of 25.8%, with a market share of USD 824.91 billion. Although not evenly distributed throughout all regions, this growth is stronger in developing markets, where it is predicted to reach USD 930.73 billion by 2023 with a CAGR of 27.3%.
Many organizations around the world were facing budget constraints due to lockdown situations during the pandemic. During this time, many organizations provided their employees with the opportunity to work from home.
Consequently, several IT enterprises plan to adopt infrastructure as a service and software as a service to manage their distributed workforce.
According to a Deloitte survey in the United States, around 75% of IT organizations adopted more than one service in 2020 to meet remote working demands. Remote workers can accomplish a wide range of tasks. A business optimization process is achieved using a variety of advanced technologies, such as artificial intelligence, cloud computing, and big data tools, products, and capabilities.
| Historical CAGR | 25.8% |
|---|---|
| Historical Market Value (2022) | USD 731.13 billion |
| Forecast CAGR | 27.3% |
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Growing Adoption and Investment in Cloud Infrastructure, IoT, and 5G
In the future, 5G, IoT, and cloud technologies are expected to enhance the capacity, functionality, and flexibility of several industries, especially cloud businesses. Many businesses are combining 5G with cloud services to improve speed, low latency, and capacity. Ericsson, for example, has over 230 customers worldwide for its cloud infrastructure. The company's top customers include Swisscom, Telkomse, Telefonica, Far EasTone, XL Axiata, and many others.
Along with providing a telco-grade cloud platform called Ericsson NFVI, which has 5G and cloud functionality, Ericsson also offers IT and IoT applications on cloud computing platforms like SaaS, PaaS, and IaaS. By partnering with one another, acquiring one another, and collaborating, the companies are investing in the development of 5G and cloud infrastructure. For instance,
Technologies Related to Big Data are Widely Adopted
Through the use of cloud computing, big data, analytics, mobile, and social media, companies have been able to innovate and transform themselves, resulting in the expansion of their businesses. The use of digital technologies has replaced the legacy approach to doing business.
Data has now become recognized as a new resource. Businesses must benefit from the data they have collected to make informed decisions quickly. Due to this need for in-depth knowledge, the use of big data and related technologies has increased. Due to the expansion of businesses worldwide, data volumes and sources have increased exponentially.
Business and governmental institutions are entering a revolutionary phase of consumer engagement as a result of significant technical breakthroughs and an ever-evolving legal environment. Emerging revolutions are playing a key role as businesses explore cutting-edge technologies like big data, cloud computing, and artificial intelligence to boost organizational growth.
In recent years, digital technology has changed business approaches away from traditional business models. Many companies are integrating big data, analytics, machine learning, and other capabilities into their current business platforms. This is to gain a competitive advantage and produce new products and services.
As a result of digital technology, companies can also implement customer-centric marketing techniques that offer a range of possibilities. For instance, through AI-driven technologies such as natural language processing, companies can develop a better understanding of their customers and create highly personalized marketing campaigns that are tailored to each customer’s individual needs.
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It is expected that large enterprises might dominate the market and hold 57.2% of the revenue share in 2023. These organizations are taking advantage of digital transformation because it offers cost-effectiveness and smooth implementation of business processes.
Having a successful solution is crucial for large enterprises since they need easier framework coordination, better adaptability, and data protection. Large enterprises can implement advanced techniques across organizations and speed up change across various areas due to their financial capability. Large enterprises play an imperative role in developing innovation-driven concepts and promoting digital awareness.
Over the forecast period, the Small and Medium Enterprises (SMEs) segment is projected to witness a significant CAGR of 29.2%. SMEs are deploying digital workplace services rapidly despite limited organizational infrastructure.
Several benefits are provided to SMEs by it, including increased worker productivity, mobilized desk-based operations, shorter time to market, lower costs, and better customer service.
As a result of lower costs and scalability, SMEs are increasingly adopting cloud-based solutions, which lowers capital expenditures for SMEs. During the forecast period, these factors are expected to drive the growth of the digital workplace market for SMEs.
In 2023, the BFSI segment dominated the market and accounted for over 27.6% of the revenue share. It is due to the shifting focus of banks and other financial institutions toward providing enhanced experiences as products and services become more commodity-like.
It is essentially banking companies' focus on providing seamless assistance and technical support to develop customer-centric approaches that are driving the market. For instance, the introduction of AI-enabled chatbots in the banking sector has enabled them to offer a more personalized experience to customers and help them to resolve queries quickly.
Based on revenue share, Asia Pacific dominated the global digital transformation market in 2023 with 39.1% and is expected to maintain its dominance during the forecast period.
By integrating advanced technologies like cloud computing, artificial intelligence, big data, analytics, mobility, cybersecurity, and IoT, the business ecosystem in the Asia Pacific is being transformed, stimulating growth. Digital technologies have transformed the traditional approach to business into a modern one.
The region is becoming a trending hotspot for digital transformation as a result of growing investments in digitalization across potential economies. Due to government initiatives and vendor investments, the country's digital transformation market is experiencing strong growth.
Government officials launched the Digital Agency last year to drive digital transformation in Japan as part of their administrative reform agenda. The move accelerated the public sector's digitalization.
Governments are cooperating with big technology businesses from across the world to promote digitization in the area. For example, Cisco collaborated with the government of Japan in February last year on a digitization project that included several industry verticals. These include government, education, healthcare, and business.
High adoption of online payment modes and increased usage of the Internet contributed to the dominance of the market in 2023. It held a 45.2% share of North America.
To speed up the digital transformation journey in the United States, various initiatives are being undertaken by government agencies, including strict adherence to regulations to protect data. As more and more organizations use digital transformation to reach the masses, market growth in the region is expected to increase significantly.
Most organizations in this region have access to dynamic and adaptable IT support, which is crucial to digital transformation. Due to high retail, manufacturing, and automotive operations, the United States has a significant lead in advanced programming and software solutions. The government in the United States invested more than USD 100 billion in 2021 to provide Americans with high-speed internet access and advanced technology.
During the forecast period, the United Kingdom is expected to capture a significant share of the Europe market. This is due to the surge of connected devices and data flows, societies and economies in this region have experienced a radical digital transition.
This is a result of digitalization and the growth of many kinds of communications. The United Kingdom digital transformation market is driven by the need for businesses to remain competitive in a rapidly changing technological landscape.
The increasing adoption of cutting-edge technologies such as cloud computing, artificial intelligence, and the Internet of Things. Businesses are looking to digitalize their operations to improve efficiency, enhance competitiveness, and better serve their customers.
Governments in the United Kingdom are taking proactive measures to adopt digital technology and spur regional growth. The government in the United Kingdom has launched several initiatives to support digital transformation, including the ‘Digital Strategy’ and the ‘Made Smarter Review’, which aim to encourage businesses to adopt cutting-edge technologies and digitalize their operations.
Digital transformation is increasingly being adopted by various industries, including finance, healthcare, retail, and manufacturing, among others. These factors are leading to increased demand for digital transformation solutions in the United Kingdom.
The combination of a crucial and growing market, high levels of investment, government support, and strong infrastructure makes the digital transformation market an attractive destination in China for companies looking to expand within the Asia Pacific.
Despite China's rapid robotization, the region's significant adopter continues to be Asia's crucial market for industrial robots. China, the leading adopter in the region, saw a 20% increase in installations with 168,400 units sold. China has embraced the digital revolution more quickly than any other nation in the world, making it a key market in the Asia Pacific. This creates a significant and growing market for digital transformation solutions in China. Along with Tencent, Alibaba, and Huawei, China is home to many of the world's crucial technology companies, all of which have invested heavily in digital transformation solutions that are driving innovation and growth.
China has prioritized digital transformation, launching initiatives such as the Made in China 2025 plan to promote innovation and commercialization. The government's commitment to digital transformation attracts talent and investment.
In China, there have been significant investments in technology infrastructure, including 5G networks and cloud computing. China's investment in technology infrastructure provides an excellent foundation for the development and adoption of digital transformation solutions.
Overall, India is a popular location for businesses wishing to invest in the market for digital transformation due to its expanding economy, vast talent pool, government assistance, and enormous market potential. The Indian Ministry of Commerce launched its online open platform, Open Network for Digital Commerce (ONDC), for small and medium businesses in April 2022.
For example, Microsoft's data center regions in India have contributed USD 9.5 billion to the economy over the past five years, and the cloud service market in India is projected to reach USD 10.8 billion by 2025. India's digital transformation market is attracting stakeholders for several reasons:
Businesses in the digital transformation market are embracing new technologies and modernizing their operations thanks to startups in this market. These startups offer solutions to help businesses increase efficiency, agility, and customer experience by automating cloud computing, artificial intelligence, big data, and the Internet of Things (IoT). A few of the leading startups in the digital transformation market include
In April 2022, Zurich Insurance Group (Zurich) choose 12 start-ups to collaborate on improving customer service strategies, interacting with them more frequently, and establishing industry limits. 12 startups have been selected to develop solutions such as tools for measuring and reducing carbon footprints for businesses and individuals, tools for detecting cyberbullying and preventing it, mobile health and wellness monitoring through video, and blockchain-based auto-resolution of insurance claims.
Various players in the digital transformation space are offering innovative digital technologies-based solutions, including Amazon.com, Inc., Alphabet LLC, Hewlett Packard Enterprise Development LP, Oracle Corporation, Microsoft Corporation, and others. As a result of increasing consumer demands, these players plan to expand their product portfolios. Key players in the market are adopting several business strategies, such as partnerships, mergers, and collaborations, to expand their businesses across the globe.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2023 |
| Market Analysis | USD billion for Value and MT for Volume |
| Key Regions Covered | North America; Latin America; Europe; The Middle East and Africa; East Asia |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Chile, Peru, Germany, United Kingdom., Spain, Italy, France, Russia, Poland, China, India, Japan, Australia, New Zealand, GCC Countries, North Africa, South Africa, and Türkiye |
| Key Segments Covered | Technology, Enterprise Size Type, Deployment Model, Industry, Region |
| Key Companies Profiled | Alphabet LLC (United States); Amazon.com, Inc. (United States); Oracle Corporation (United States); Microsoft Corporation (United States); IBM Corporation (United States); Apple Inc. (United States); Salesforce Inc. (United States); SAP SE (Germany); Cisco Systems, Inc. (United States); Alibaba Group Holding Limited (China) |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The market is valued at USD 930.73 billion in 2023.
The market registered a CAGR of 25.8% from 2018 to 2022.
The market is estimated to reach USD 10,401.77 billion in 2033.
The United States market is estimated to hold a market share of 45.2%.
Surging demand for cybersecurity is likely to provide a boost to the market.
1. Executive Summary | Digital Transformation Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Solution 5.1. Cloud Computing 5.2. Big Data Analytics 5.3. AI Enabled Solutions 5.4. Cyber Security 5.5. Social Media Management 5.6. IoT 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Deployment 6.1. On-premises 6.2. Cloud 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Organization Size 7.1. Large Enterprises 7.2. Small & Medium Enterprises 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Industry 8.1. Food & Beverages 8.2. Manufacturing 8.3. Energy & Utilities 8.4. Others 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. Asia Pacific 9.5. Middle East and Africa 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Microsoft 17.2. Cognizant 17.3. Adobe 17.4. Dell 17.5. IBM 17.6. Google 17.7. Marlabs 17.8. Accenture 17.9. Broadcom 17.10. Euinix 18. Assumptions & Acronyms Used 19. Research Methodology
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Digital Transformation Market
