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Market Summary

The global Digital Transformation market is forecasted to grow at a rate of 20.96% CAGR from 2020 to 2027, rising from value of USD 221.43 Billion in 2019 to USD 1102.32 Billion in 2027. The dawn of technologies such as machine learning, artificial intelligence, internet of things has significantly contributed to the growth of the digital transformation market.

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Additionally,the introduction of connected, data-rich solutions that are flexible in terms of expansion and incorporating state of the art technologies are adding to the growth of the market.

Rising penetration of mobile devices and apps has paved the way for digitization of different industry vertical. Organizations and businesses globally are transforming their businesses into digital ones which is further adding up to the growth. A trend of bring your own device (BYOD) is another factor that is helping the growth of the market. Discrete and process manufacturing will lead to the largest digital transformation spending through the forecast period, accounting for over 30% of the global amount.

The impact of COVID-19 has increasingly accelerated the growth of digital transformation. With the norms like contactless operations and social distancing, more and more businesses and organizations are turning towards digital solutions as their mode of operation. Another major trend that is being witnessed in the industry amidst this pandemic is the rise of free premium services being offered by the digital solutions providing businesses. An example of this is the free premium service offered by Fitbit for over 90 days. This strategy has held huge market potential as many consumers have opted for the free services, however post completion of free services, there will be a massive drop in the penetration rate of these digital solutions, which will still be more than the average penetration rate.

Solutions component Outlook:

Digital transformation is increasingly getting essential for all sorts of organizations ranging from small scale enterprise to large scale enterprise. The global demand from consumers for latest technology, social media, and valuable solutions is increasing. This is leading to many organizations incorporating digital solutions in order to increase the customer experience. Another factor boosting the growth of the digital transformation solutions is the rising competition being witnessed in the organizations globally in order to reach out to a larger audience. This factor is further boosting the growth of the solutions segment of the digital transformation solution over the forecast period.

Deployment Type Outlook:

Cloud deployment mode is a key offering in the digital transformation market. Cloud computing has increasingly become more significant in enabling the digital transformation of a business. The total public cloud market in 2018 was USD 178 Billion which was an increase from USD 146 Billion in 2017. Cloud deployment mode enables faster prototyping and testing which is very essential for organizations which need deploy ready solutions. This factor has increasingly attributed to the growth of the segment over the forecasted period. Another factor that is adding up to the growth of the cloud deployed solutions is the fact that small scale enterprises do not have to look into the costs associated with the backend operations of the cloud solutions and hence are increasingly opting for cloud solutions. Another factor of the rising cloud deployed digital solutions is the security it provides to the end use organization. With the rise in the data silos in organizations, the cloud deployed solutions offer better security to organizations and hence are increasingly being adopted by SMEs as cyber security issues arise.

End Use Industry Outlook:

Digital Transformation plays a major role in the BFSI industry. With the rise in the smartphone penetration as well as the increasing internet penetration across developing regions, the demand for digital payments is on the rise. With digital solutions, banks can offer customized or personalized offerings to their customers. Digital transformation equips a banking institution to act upon the technology and the market trends and scale the efforts as and when needed. Banks and credit unions are using data mining to improve the pricing. Additionally, with the help of data mining, banks can analyze and find customer who may be paying for services which they don’t care about and are getting other services they would be willing to pay for free.

Regional Outlook:

North America region is forecasted to grow at a rate of 19.98% CAGR through the forecasted period of 2020 to 2027. Factors attributing to the growth of the region over the forecasted period include the demand for reaching out to the masses across various industries. Additionally, the adoption of digital platform provides an opportunity of automating the tasks. Technologies like machine learning, artificial intelligence are being incorporated in the digital solutions being offered.

Another factor that has accounted for the large share of the region is the presence of prominent players in the region like IBM Corp., Microsoft Corp., and Google amongst others.

Market-O-Nomics

Retail is one of the fastest growing end use industry as more and more technologies are being incorporated. One notable inclusion of digital transformation in the retail industry is the Amazon Go store setup by Amazon which is a cashier less store. Such innovations will help growth of the segment over the forecasted period.

Rising penetration of smartphones, especially in the developing regions of the globe has added to the growth of the market. Additionally, the increasing internet penetration is also adding up to the growth of the market.

Inclusion of technologies like Artificial Intelligence, Machine Learning, and Blockchain. Additionally, the advent of 5G will lead to better internet connectivity and thus an increased demand for digital transformation market globally.

Small scale enterprise occupied a share of over 39.52% in 2019. Rising need for small businesses to automate the processes and the tools to efficiently manage the operations is one of the factor adding up to the growth of the segment.

Companies considered and profiled in this market study

IBM Corporation, Microsoft Corporation, SAP, Dell EMC, Google, Accenture PLC, CA Technologies, Cognizant, Adobe Systems, Oracle Corporation, Hewlett Packard Enterprise, HCL Technologies, TIBCO Software, Marlabs, and Equinix have been profiled in the report. They are the major solution providers in the market.

The players operating in the market have undertaken a number of strategies related to the market in the period 2017-2020. The key highlight is:

In June 2018, Carrefour partnered with Google in a bid to aid the French retail company for digital transformation. This alliance made Carrefour the first partner of Google on grocery e-commerce in Europe, thus increasing the reach of Google in the region.

Start-up Traction

The industry offers numerous growth opportunities. Thus, a number of startups providing innovative products and technologies have been entering the market. Some of them include Innominds Software Pvt. ltd., Appnovation, and Experion Technologies.

Deals Landscape

Mergers and Acquisitions are an integral part of the Digital Transformation industry. Along with the companies operating in the market, other key market players have also been entering the industry.

In December 2018, Accenture acquired Enaxis Consulting, a management consulting firm with deep experience in digital capabilities. This acquisition will enable Accenture to venture into the targeted business services for core oil and gas areas.

Expert Insights:

Reports and Data forecasts promising developments for increased adoption of Digital Transformation technology. According to industrial experts, application relating to the market product will usher in the market and will soon drive the industry. Moreover, new manufacturers are expected to enter the market who are likely to provide platform-centric Digital Transformation solutions for production applications. New companies entering the industry would focus on innovating and providing through advanced technologies thereby reducing complexity and lowering the overall total cost of operation. Experts also believe that increase in adoption of environment friendly product in emerging nations would be a key development area for the industry.

Segments covered in the report

This report forecasts revenue growth at a global, regional & country level, and provides an analysis of the market trends in each of the sub-segments from 2017 to 2027. The scope of the report can be defined as:

For the purpose of this report, Reports and Data have segmented into the global Digital Transformation market on the basis of extraction type, application, end use industry, and region:

Component Outlook (Revenue, USD Million; 2017-2027)

Solution

Services Professional Services Managed Services



Technology Outlook (Revenue, USD Million; 2017-2027)

Cloud Computing

Big Data & Analytics

Mobility/Social Media

Cybersecurity

Artificial Intelligence

Internet of Things

Others

Business Functions Outlook (Revenue, USD Million; 2017-2027)

Customer Transformation

Workforce Transformation

Product Transformation

Others

Deployment mode Outlook (Revenue, USD Million; 2017-2027)

Cloud

On Premise

Organization Size Outlook (Revenue, USD Million; 2017-2027)

Large Enterprise

Small scale enterprise

Medium scale enterprise

End Use Industry Outlook (Revenue, USD Million; 2017-2027)

BFSI

Government

Healthcare

IT & Telecom

Manufacturing

Retail

Others

Regional Outlook (Revenue, USD Million; 2017-2027)

North America U.S

Europe U.K France

Asia Pacific China India Japan

MEA

Latin America Brazil



Key Question the Report Will Answer

At what rate will the Digital Transformation Market grow? What will be the value of the market in 2027?

What are key technologies driving Digital Transformation?

What would be the impact of Digital Transformation across different regions?

What are the strategies adopted by players to enter the APAC region?

What is the key application of Digital Transformation in the transportation sectors?

What are future growth strategies in the market?