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Digital Transformation Market

Digital Transformation Market Forecasts to 2028 – Global Analysis By Organization Size (Small and Medium-Sized Enterprises (SMEs), Large Enterprises), Component (Hardware, Solution, Service) and By Geography

4.1 (56 reviews)
Published: January 2022 ID: SMRC21326
4.1 (56 reviews)
Published: January 2022 ID: SMRC21326

This report covers the impact of COVID-19 on this global market

According to Stratistics MRC, the Global Digital Transformation Market is accounted for $530.55 billion in 2021 and is expected to reach $2,026.45 billion by 2028 growing at a CAGR of 21.1% during the forecast period. Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how an enterprise operates and delivers value to customers. It is also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure. Digital transformation is the use of digital technology to redesign a process in order to make it more efficient. It aims to utilize technology to convert a current service into something considerably better.

Market Dynamics:

Driver:

Adoption and scaling of digital initiatives


While digital pilots may yield positive results, industrials must deploy programs across the board to have a significant impact. Scaling up will necessitate the creation of new enterprise-wide business procedures. Because conventional channels, such as in-person encounters, will continue to be crucial, businesses will need to handle possible conflicts as their online presence expands. The most difficult component of any digitalization project is usually the adoption and scaling phase. Industrial firms must constantly reassess their priorities for domains, value levers, solutions, and use cases to prosper. AI-driven automation has proven useful in various applications across industries, including aviation, medical, agriculture, energy, and material handling markets. AI is being used not only to automate tasks but also to diagnose equipment malfunctions or detect product anomalies. For instance, within the aviation industry, AI and ML can be used to predict peak travel times, assist with passenger check-in, and automate routine maintenance tasks.

Restraint:

Concerns regarding data security 


The backbone of digital transformation solutions, data, remains a critically important aspect that most organizations find it difficult to manage. The inefficiency of managing large amount of data has increased the chances of security breaches and data losses. In the current competitive marketplace, marketing teams require real-time and secure data to deliver an outstanding customer experience. Organizations are gathering data through multiple touchpoints and measure them virtually. Such data is used in support and communication and may include a variety of data types. These data types comprise public information, big data, and small data collected from customers. 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 smartphones will become a potential target for hackers. The 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. This data can include permissions, individual preferences, and updated contact information on products, services, and communication platforms. Hence, vendors need to ensure high-level data security to maintain the customer trust. In recent times, cybercriminals have gained access to widespread tools to obtain anything from passwords to secret questions and token-generated passwords. In such situations, marketing and IT teams need to work concurrently, providing each other with insights on when and how the data is gathered, processed, and used in operations. Such rampant attacks continue to hinder the widespread adoption of digital transformation across data-intensive industrial sectors. However, this scenario is expected to gradually change over the course of forecast period as the benefits of technology adoption continue to outweigh the risks associated and with overall developments on data security front.

Opportunity:

Increasing 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. Hence, 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. Hence, market vendors focus on building personalized digital transformation solutions that meet the precise requirements of different industries and businesses.

Threat:

Integration of data from data silos


Extracting value from data has become a key requirement for companies to successfully mitigate risks, target valuable customers, and evaluate business performance. Monetizing these data assets require the availability of a sufficient amount of data. However, data consolidation from distinct data sources into meaningful information can incite various new challenges for organizations, especially centralized business enterprises. Data exchange and data ecosystem deliver tools to analyze the collected data at a centralized location and help extract and cross-check business-critical components. The development of data exchanges and data ecosystems varies based on the assumptions made in the value of the data for each customer segment. Various digital transformation providers offer unified data aggregation and data analytics platforms that help users in successfully aggregating and analyzing data from disparate data sources. Data exchange is a major concern for industries, such as BFSI and healthcare, which deal with individual’s confidential data. As the need for data exchange increases, it needs to be balanced with risk mitigation capabilities. With companies adopting the digital transformation software integrated with data security capabilities, data exchange is not expected to be a major issue in the near future.

The on-premises segment is expected to be the largest during the forecast period

Several businesses select on-premise solutions owing to the ease of customizability offered during their implementation. On-premise solutions offer high-end data security and facilitate easy compliance with various government regulations. The on-premise deployment also offers large organizations better control over confidential data. Moreover, on-premise deployment allows organizations to install a customized network of digital transformation that suits the organization’s needs most accurately and efficiently.

The small and medium-sized enterprises (SMEs) segment is expected to have the highest CAGR during the forecast period

Factors such as the increased focus on cloud computing and reduced cost of mobile devices, are making it much more suitable for SMEs to streamline their businesses and grow organically. Rising awareness among SMEs about the benefits of digitization is encouraging them to invest significantly in digital transformation to sustain and strengthen their market positions, especially in a highly competitive market.

Region with largest share:

North America is projected to hold the largest market share owing to high penetration of internet services and wide usage of a variety of online payment methods in the retail sector. The presence of key market players engaged in digital transformation solutions in North America will drive the regional market growth over the forecast years. Moreover, high demand for software and advanced robotic solutions, owing to extensive technology penetration across the retail, manufacturing, and automotive industries in the U.S. and Canada is expected to propel the regional market growth. Key factors favoring the growth of the digital transformation market in North America include the increasing technological advancements in the region.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR due to the increasing number of SMEs and the expanding service sector. In addition, growing awareness about the benefits of cloud technology and other technological advancements are compelling SMEs in the region to transform their businesses to ensure future growth. The rising usage of mobile devices & social media analytics along with growing online commerce is also expected to drive the regional market over the forecast period. The use of advanced technologies, such as cloud computing, AI, big data and analytics, mobility/social media, cybersecurity, IoT, among others, led to innovation and transformation, thereby stimulating growth in the business ecosystem of Asia Pacific. Digital technologies have transformed the legacy approach to business into a modern approach. Besides, the region is becoming a new hotspot in the digital transformation market due to rising investments in the process of digitalization across potential economies. The digital transformation market is witnessing strong growth in the country owing to government initiatives, vendor investments, among others. For instance, in September 2021, the Japanese government launched the Digital Agency to drive Japan's digital transformation as part of the administrative reform agenda. The government's move pushed the digitalization of the public sector. The rising efforts by the governments for tying up with the major technology companies across the world for a digitalization push in the region. For instance, in February 2021, Cisco collaborated with the government of Japan on a digitization project which included various industry verticals, including government, education, healthcare, and business.

Some of the key players profiled in the Digital Transformation Market include BM, Microsoft, SAP, HPE, Accenture, Google, Oracle, Adobe, Cognizant, HCL Technologies, Dell, Tibco Software, Broadcom, Marlabs, and Equinix.

Key developments:

In April 2021: Oracle and SailGP, the world's finest sailing racing league, have expanded their successful Digital Transformation platform in preparation for the second season. Oracle Cloud Infrastructure (OCI) is used by SailGP to supply real-time data to each of the league's eight national teams, as well as broadcast partners and fans globally.

In April 2021: Oracle made its GoldenGate technology available as a highly automated, fully managed cloud service that clients can use to help ensure that their valuable data is always available and analyzable in real-time, wherever they need it.

In April 2020: IBM released novel AI-powered technologies. IBM released novel AI-powered technologies to help the Health and Research Community accelerate the discovery of medical insights and treatments for COVID-19.

In September 2019: Google introduced cloud storage connector for Predictive workloads. This solution allowed organizations to substitute their Hadoop Distributed File System (HDFS) with Google Cloud Storage.

In November 2018: HPE announced the extension of HPE InfoSight’s Digital Transformation and recommendation capabilities to HPE ProLiant servers, HPE Synergy compute modules, and HPE Apollo systems.

1 Executive Summary    
      
2 Preface     

 2.1 Abstract    
 2.2 Stake Holders   
 2.3 Research Scope   
 2.4 Research Methodology  
  2.4.1 Data Mining  
  2.4.2 Data Analysis  
  2.4.3 Data Validation  
  2.4.4 Research Approach  
 2.5 Research Sources   
  2.5.1 Primary Research Sources 
  2.5.2 Secondary Research Sources 
  2.5.3 Assumptions  
      
3 Market Trend Analysis   
 3.1 Introduction   
 3.2 Drivers    
 3.3 Restraints    
 3.4 Opportunities   
 3.5 Threats    
 3.6 Technology Analysis   
 3.7 End User Analysis   
 3.8 Emerging Markets   
 3.9 Impact of Covid-19   
      
4 Porters Five Force Analysis   
 4.1 Bargaining power of suppliers  
 4.2 Bargaining power of buyers  
 4.3 Threat of substitutes   
 4.4 Threat of new entrants  
 4.5 Competitive rivalry   
      
5 Global Digital Transformation Market, By Deployment Mode
 5.1 Introduction   
 5.2 On-Premises   
 5.3 Cloud    
      
6 Global Digital Transformation Market, By Organization Size
 6.1 Introduction   
 6.2 Small and Medium-Sized Enterprises (SMEs)
 6.3 Large Enterprises   
      
7 Global Digital Transformation Market, By Component
 7.1 Introduction   
 7.2 Hardware    
 7.3 Solution    
 7.4 Service    
  7.4.1 Professional Services  
  7.4.2 Managed Services  
      
8 Global Digital Transformation Market, By Business Function
 8.1 Introduction   
 8.2 Product Transformation  
 8.3 Customer Transformation  
 8.4 Workforce Transformation  
      
9 Global Digital Transformation Market, By Technology
 9.1 Introduction   
 9.2 Industrial Robotics/Robotic Process Automation
 9.3 Internet of Things (IoT)  
 9.4 Big Data and Analytics  
 9.5 Machine Learning and Artificial Intelligence 
 9.6 Cloud Computing   
 9.7 Blockchain   
 9.8 Advanced Human Machine Interface (HMI) 
 9.9 3D Printing/Additive Manufacturing 
 9.10 Mobility/Social Media  
 9.11 Cybersecurity   
 9.12 Augmented Reality (AR) / Virtual Reality (VR)
      
10 Global Digital Transformation Market, By End User 
 10.1 Introduction   
 10.2 Banking, Financial Services and Insurance (BFSI)
 10.3 IT & Telecom   
 10.4 Government and Defense  
 10.5 Food and Beverages   
 10.6 Media and Entertainment  
 10.7 Healthcare and Life Sciences  
 10.8 Manufacturing   
 10.9 Automotive   
 10.10 Retail and E-Commerce  
 10.11 Supply Chain and Logistics  
 10.12 Utilities    
 10.13 Education    
      
11 Global Digital Transformation Market, By Geography
 11.1 Introduction   
 11.2 North America   
  11.2.1 US   
  11.2.2 Canada   
  11.2.3 Mexico   
 11.3 Europe    
  11.3.1 Germany   
  11.3.2 UK   
  11.3.3 Italy   
  11.3.4 France   
  11.3.5 Spain   
  11.3.6 Rest of Europe  
 11.4 Asia Pacific   
  11.4.1 Japan   
  11.4.2 China   
  11.4.3 India   
  11.4.4 Australia   
  11.4.5 New Zealand  
  11.4.6 South Korea  
  11.4.7 Rest of Asia Pacific  
 11.5 South America   
  11.5.1 Argentina   
  11.5.2 Brazil   
  11.5.3 Chile   
  11.5.4 Rest of South America 
 11.6 Middle East & Africa   
  11.6.1 Saudi Arabia  
  11.6.2 UAE   
  11.6.3 Qatar   
  11.6.4 South Africa  
  11.6.5 Rest of Middle East & Africa 
      
12 Key Developments    
 12.1 Agreements, Partnerships, Collaborations and Joint Ventures
 12.2 Acquisitions & Mergers  
 12.3 New Product Launch   
 12.4 Expansions   
 12.5 Other Key Strategies   
      
13 Company Profiling    
 13.1 IBM    
 13.2 Microsoft    
 13.3 SAP    
 13.4 HPE    
 13.5 Accenture   
 13.6 Google    
 13.7 Oracle    
 13.8 Adobe    
 13.9 Cognizant    
 13.10 HCL Technologies   
 13.11 Dell    
 13.12 Tibco Software   
 13.13 Broadcom   
 13.14 Marlabs    
 13.15 Equinix    


List of Tables     
1 Global Digital Transformation Market Outlook, By Region (2020-2028) ($MN)
2 Global Digital Transformation Market Outlook, By Deployment Mode (2020-2028) ($MN)
3 Global Digital Transformation Market Outlook, By On-Premises (2020-2028) ($MN)
4 Global Digital Transformation Market Outlook, By Cloud (2020-2028) ($MN)
5 Global Digital Transformation Market Outlook, By Organization Size (2020-2028) ($MN)
6 Global Digital Transformation Market Outlook, By Small and Medium-Sized Enterprises (SMEs) (2020-2028) ($MN)
7 Global Digital Transformation Market Outlook, By Large Enterprises (2020-2028) ($MN)
8 Global Digital Transformation Market Outlook, By Component (2020-2028) ($MN)
9 Global Digital Transformation Market Outlook, By Hardware (2020-2028) ($MN)
10 Global Digital Transformation Market Outlook, By Solution (2020-2028) ($MN)
11 Global Digital Transformation Market Outlook, By Service (2020-2028) ($MN)
12 Global Digital Transformation Market Outlook, By Professional Services (2020-2028) ($MN)
13 Global Digital Transformation Market Outlook, By Managed Services (2020-2028) ($MN)
14 Global Digital Transformation Market Outlook, By Business Function (2020-2028) ($MN)
15 Global Digital Transformation Market Outlook, By Product Transformation (2020-2028) ($MN)
16 Global Digital Transformation Market Outlook, By Customer Transformation (2020-2028) ($MN)
17 Global Digital Transformation Market Outlook, By Workforce Transformation (2020-2028) ($MN)
18 Global Digital Transformation Market Outlook, By Technology (2020-2028) ($MN)
19 Global Digital Transformation Market Outlook, By Industrial Robotics/Robotic Process Automation (2020-2028) ($MN)
20 Global Digital Transformation Market Outlook, By Internet Of Things (IoT) (2020-2028) ($MN)
21 Global Digital Transformation Market Outlook, By Big Data and Analytics (2020-2028) ($MN)
22 Global Digital Transformation Market Outlook, By Machine Learning and Artificial Intelligence (2020-2028) ($MN)
23 Global Digital Transformation Market Outlook, By Cloud Computing (2020-2028) ($MN)
24 Global Digital Transformation Market Outlook, By Blockchain (2020-2028) ($MN)
25 Global Digital Transformation Market Outlook, By Advanced Human Machine Interface (HMI) (2020-2028) ($MN)
26 Global Digital Transformation Market Outlook, By 3D Printing/Additive Manufacturing (2020-2028) ($MN)
27 Global Digital Transformation Market Outlook, By Mobility/Social Media (2020-2028) ($MN)
28 Global Digital Transformation Market Outlook, By Cybersecurity (2020-2028) ($MN)
29 Global Digital Transformation Market Outlook, By Augmented Reality (AR) / Virtual Reality (VR) (2020-2028) ($MN)
30 Global Digital Transformation Market Outlook, By End User (2020-2028) ($MN)
31 Global Digital Transformation Market Outlook, By Banking, Financial Services and Insurance (BFSI) (2020-2028) ($MN)
32 Global Digital Transformation Market Outlook, By IT & Telecom (2020-2028) ($MN)
33 Global Digital Transformation Market Outlook, By Government and Defense (2020-2028) ($MN)
34 Global Digital Transformation Market Outlook, By Food and Beverages (2020-2028) ($MN)
35 Global Digital Transformation Market Outlook, By Media and Entertainment (2020-2028) ($MN)
36 Global Digital Transformation Market Outlook, By Healthcare and Life Sciences (2020-2028) ($MN)
37 Global Digital Transformation Market Outlook, By Manufacturing (2020-2028) ($MN)
38 Global Digital Transformation Market Outlook, By Automotive (2020-2028) ($MN)
39 Global Digital Transformation Market Outlook, By Retail and E-Commerce (2020-2028) ($MN)
40 Global Digital Transformation Market Outlook, By Supply Chain and Logistics (2020-2028) ($MN)
41 Global Digital Transformation Market Outlook, By Utilities (2020-2028) ($MN)
42 Global Digital Transformation Market Outlook, By Education (2020-2028) ($MN)
      
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.

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