[274 Pages Report] The global digital transformation market size is expected to grow from USD 469.8 billion in 2020 to USD 1009.8 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 16.5% during the forecast period. Major growth drivers of the market are the increasing penetration of mobile devices and app and the increasing adoption of cloud services.

Amid COVID-19 pandemic cloud and internet technologies are keeping our world running. With social distancing in place businesses across sectors are working remotely, and people are completely dependent on online services for their essential and non-essential needs. To make this virtual world as real, efficient, and impactful as possible, the demand for robust cloud infrastructure is booming. While everyone stays at home, cloud computing has made entertainment and gaming activities more seamless than ever.

During the COVID-19 pandemic crisis, visitor�s access to enterprises could be easily transferred to blockchain and Bluetooth Low Energy (BLE)-based access management systems. The visitor/guest would receive an invitation through an app and upon accepting the invitation a unique access key would be generated and the transactions will be secured using blockchain. Using the same access key and a BLE enabled device the visitor should be able to enter the office/society premise seamlessly. A distributed technology, such as one using blockchain, not only provides a more secure way to implement access control systems but also it is cheaper than a cloud-based back-end server-based implementation. The blockchain technology makes it easier to access and track the visitor�s health records, especially related to the COVID-19 scenario.

Market Dynamics

Driver: Digitalizing organizational business functions to serve changing customer preferences and enhance operational efficiency

The use of advanced technologies, such as cloud, IoT, big data and analytics, mobility, and social media, has led to innovation and transformation, thereby stimulating growth in the business ecosystem. Digital technologies have transformed the legacy approach to business into a modern approach. Noticeably, organizations demand an instant, precise, and real-time response from the analysis of big data to create new products and services, enhance existing ones, and formulate entirely new business models to gain a competitive edge. Enterprises have started incorporating big data and business intelligence to obtain real-time information, gain actionable insights, understand customer requirements, and facilitate growth in their overall productivity. Since the adoption of modern technology offers endless opportunities, customers often rate enterprises primarily in terms of digital customer experience. The majority of companies are adopting digital transformation practices, which majorly focus on digital interactions with their customers. This factor has led to an increase in demand for digital transformation solutions across various industry verticals.

Restraint: Security and privacy concerns for confidential data

The security and privacy of critical enterprise data constitute a major issue while executing digital enablement technologies. As IoT becomes more widespread, organizations will increasingly require more robust security and privacy to prevent breaches. The issue of security endangers the success of digitization. With the growing number of IoT-enabled systems, the number of security and privacy issues will also increase, and every endpoint, gateway, sensor, and smartphone will become a potential target for hackers. Furthermore, organizational data can be easily accessed on-the-go with the help of BYOD devices, such as smartphones, tablets, phablets, and laptops. The middleware application makes these devices portable, thereby making them vulnerable to loss of physical control and network security breaches. Using portable devices can increase the risk of data loss and exposure of data and devices through network-based attacks to-and-from any system the device is connected to

Opportunity: Demand for personalized digital transformation

Every enterprise faces different sets of business growth challenges, such as sales operation, enterprise collaboration, and digital customer base. Digital transformation solutions effectively handle challenges specific to the business segment as well as the industry sector. For instance, the same digital transformation solution that works for a textile manufacturing company cannot possibly work for an auto parts manufacturer. Therefore, market vendors are offering highly personalized digital transformation solutions to address the business growth challenges of their customers. This level of personation is possible with enterprise data. Enterprises have huge volumes of enterprise data, which is growing exponentially. Most of these are usually not streamlined, which is also where advanced technologies such as AI, big data, ML, and data analytics generate actionable business insights and can create a huge difference in revenue elevation. Thus, market vendors focus on building personalized digital transformation solutions that meet the precise requirements of different industries and businesses.

Challenge: Issues related to IT modernization

IT modernization and digital transformation are occurring in enterprises at the same time but are driven by different stakeholders. The goal of IT modernization is to enable support systems to support digital transformation. Digital transformation�s objective is to accomplish business goals at speed, and that speed requires IT modernization. Enterprises undertaking these journeys can build a foundation flexible enough to support new business models that deliver greater value to customers, employees, and stakeholders.

With companies looking forward to modernizing their IT, complexities in digital infrastructure are increasing. Historically, modernization was largely about implementing software and technology and scaling them up. As companies move into IT modernization, they also enter a fundamentally different world of design and business model change or service model change. Alongside the quest to build a newer cloud-first approach, companies would also need to undertake initiatives to modernize their legacy systems to enable them to work collaboratively. According to a whitepaper titled IT Modernization: Critical to Digital Transformation, published in March 2019, almost all (95%) respondents� organizations face fundamental IT challenges as an additional hurdle to modernization, with the most common centering on security and operational risk concerns. Additionally, enterprises migrating to the cloud have to face compatibility issues while moving and implementing their workloads from on-premises to cloud. Redesigning infrastructure and networks to migrate from on-premises to the cloud requires high initial investments, which may not be possible for startups or SMEs due to budget constraints. Therefore, the above issues related to IT modernization are challenging the adoption of digital transformation.

Small and Medium-sized enterprises to grow at the highest CAGR during the forecast period

The digital transformation market by organization size is segmented into large enterprises and small and medium-sized enterprises. SMEs and IT ecosystems are highly impacted due to digital transformation. Technology and infrastructure vendors have started realizing the importance of innovative technologies, such as cloud, big data, mobile, social, and sensors. Digital transformation has brought a major shift in the traditional ways of manufacturing, handling, storing, and transporting things leading to the adoption of digital transformation technologies.

Cloud deployment model to hold a larger market size during the forecast period

The deployment of digital transformation solutions on the cloud enables users to access solutions from their desktops or any mobile devices. Key advantages of this deployment type include easy deployment, low deployment cost, and easy upgradeability and accessibility. Therefore, cloud digital transformation solutions are adopted by small organizations and individual users generally.

North America to hold the largest market size during the forecast period

North America is expected to hold the largest market size in the global digital transformation market, while Asia Pacific (APAC) is expected to grow at the highest CAGR during the forecast period. The region is becoming a new hotspot in the digital transformation market, due to rising investments in the process of digitalization across potential economies.

North America is an extremely open market for digital transformation. The indispensable requirement of companies to transform their traditional business operations into digital, and the rapid adoption of mobile devices, IoT solutions, and cloud technology, have led to the increased adoption of digital transformation solutions in this region.

Key market players

Major vendors in the global digital transformation market include Microsoft (US), SAP (Germany), Cognizant (US), Adobe (US), Dell EMC (US), IBM (US), Google (US), Marlabs (US), Accenture (Ireland), Broadcom (US), Equinix (US), Oracle (US), HPE (US), HCL Technologies (India), Tibco software (US), Alcor Solutions (US), Smartstream (UK), Yash Technologies (US), Interfacing (Canada), Kissflow (India), Emudhra (India), Process Maker (US), Process Street (US), Happiest Minds (India), Scoro (UK), Brillio (US), Aexonic Technologies (US). These vendors have adopted various organic and inorganic growth strategies, such as new product launches, partnerships and collaborations, and mergers and acquisitions, to expand their presence in the global digital transformation market.

Microsoft (US) develops and supports software, services, devices, and solutions that deliver value for customers and help people and businesses know their potential. The company has a large product portfolio, which includes operating systems, cross-device productivity applications, server applications, business solution applications, desktop and server management tools, software development tools, and video games. The company also designs, manufactures, and sells devices such as PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories. The company offers cloud-based services, support services, and consulting services to its customers. Additionally, the company delivers relevant online advertising to a global audience.

Scope of the Report

Report Metric Details Market size available for years 2014�2025 Base year considered 2019 Forecast period 2020�2025 Forecast units Million (USD) Segments covered Technology, Deployment Model, Organization Size, Industry Vertical, and Region Geographies covered North America, Europe, Asia Pacific (APAC), Latin America, and Middle East and Africa (MEA) Companies covered Microsoft (US), SAP (Germany), Cognizant (US), Adobe (US), Dell EMC (US), IBM (US), Google (US), Marlabs (US), Accenture (Ireland), Broadcom (US), Equinix (US), Oracle (US), HPE (US), HCL Technologies (India), Tibco software (US), Alcor Solutions (US), Smartstream (UK), Yash Technologies (US), Interfacing (Canada), Kissflow (India), Emudhra (India), Process Maker (US), Process Street (US), Happiest Minds (India), Scoro (UK), Brillio (US), Aexonic Technologies (US).

This research report categorizes the digital transformation based on technology, deployment model, organization size, industry verticals, and regions.

By technology:

Cloud Computing

AI

Big Data and Analytics

Mobility/Social Media

Cybersecurity

IoT

Others (Blockchain and Robotics)

By deployment model:

On-premises

Cloud

By organization size:

Large Enterprises

Small and Medium-sized Enterprises (SMEs)

By industry vertical:

Banking, Financial Services, and Insurance (BFSI)

Healthcare

IT and telecom

Education

Retail

Media and Entertainment

Manufacturing

Government

Others (Transportation and Logistics and Travel and Hospitality)

By region:

North America United States (US) Canada

Europe United Kingdom (UK) Germany France Rest of Europe

Asia Pacific (APAC) Japan China India Rest of APAC

Middle East and Africa (MEA) UAE KSA South Africa

Latin America Brazil Mexico Rest of Latin America



Recent Developments

In February 2019, Microsoft collaborated with Telecom Egypt, to extend its global cloud network to Egypt. Telecom Egypt will provide low-latency connectivity into and across Egypt to help enhance performance and increase reliability for customers of Microsoft services. This network collaboration will further enhance the delivery of Microsoft services to customers in Egypt, North Africa, and the Middle East.

In February 2019, SAP launched SAP Leonardo Internet of Things (IoT), the all-encompassing technology that generates and drives digital transformation for Industrial IoT and Industry 4.0. In addition, SAP announced the cloud-to-cloud interoperability of SAP Leonardo IoT with Microsoft Azure IoT Hub, providing customers a choice of connectivity and device management.

In March 2019, Accenture acquired Enterprise System Partners (ESP) (Ireland), a consulting and manufacturing services provider for the life sciences industry, to help Accenture�s life sciences clients digitize and transform manufacturing operations. ESP will join Accenture Industry X.0, which helps clients master the digital reinvention of industry, strengthening Accenture�s capabilities to transform manufacturing for pharmaceutical, biotech, and medical device clients globally.

Frequently Asked Questions (FAQ):

What is digital transformation? Digital transformation is the outcome of changes that occur with the application of digital technologies. The use of digital transformation across business and organizational activities, processes, competencies, and business models leverages the changes and opportunities of a mix of digital technologies and their impact on society. Digital transformation helps enterprises improve the customer experience, optimize the workforce, enhance the operational activities, and transform the products and services of the organization. What are the top vendors in digital transformation market? Major vendors offering digital transformation solutions include Microsoft, SAP, Cognizant, Adobe, IBM and Google. These vendors have adopted different types of organic and inorganic growth strategies such as new product launches, partnerships and collaborations, and mergers and acquisitions to expand their offerings in the market. What are the technologies covered in digital transformation market? Digitalization initiatives across the developing nations have led enterprises, both public and private, to deploy cloud and mobility-based applications. The technologies covered in digital transformation market are cloud computing, AI, big data and analytics, mobility/social media, cybersecurity, IoT, and others (blockchain and robotics). What are the current trends driving the digital transformation market?? Major growth drivers of the market are increasing penetration of IoT and adoption of cloud services and the need to improve operational performance to gain competitive benefits in the market What are the benefits of digital transformation? The insights found through digital transformation can power every business function.

Following are the benefits of digital transformation: Increased end-user satisfaction

Improved Efficiency

Customer Experience

Robust Decision Making

Enhanced Profitability

Better Market Penetration Does this report include the impact of COVID-19 on digital transformation market? Yes, the report includes the impact of COVID-19 on digital transformation market. It illustrates the pre- and post- COVID-19 market scenario. .

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