What is the worldwide value of digital transformation?
ResearchAndMarkets.com has released its report on the digital transformation market and its expected growth by 2027.
The “Global Digital Transformation Market By Component, By Deployment Type, By Enterprise Size, By End User, By Regional Outlook, Industry Analysis Report and Forecast, 2021 – 2027” report has been added to ResearchAndMarkets.com‘s offering.
The Global Digital Transformation Market size is expected to reach US$1,302.9bn by 2027, rising at a market growth of 20.8% CAGR during the forecast period. Digital transformation is considered as the utilisation of digital technology with an aim to address conventional issues. Switching from traditional to new digitalised business models streamlines the launch of highly technologically advanced products and solutions. Digital transformation assists companies in enhancing their brand’s image, customer experience, and customer retention rations with the help of the installation of the software. Digitally transformed companies can be flexible to the changing technological landscape and address abrupt industry shifts.
With the help of digital transformation, companies can become empowered to enhance their customer experience, operational performance, brand image, and customer retention ratios. In addition, digitally transformed enterprises can be flexible to the changing technological landscape and can address abrupt shifts in the industry, particularly the one presently created by the COVID-19 pandemic; studies show that the efficiency and rate of adaptation of digitally transformed companies to a post-pandemic era are relatively larger than conventional businesses.
Various enterprises across different industries put hefty investments in cloud platforms, big data technologies, and mobility to create Digital Experience Platforms (DXP). In addition, companies that produce a huge amount of business data are installing digital transformation solutions embedded with advanced technologies, like machine learning, quantum computing, IoT, and blockchain, to obtain beneficial insights from the data. These trends support the significant market players to aim for product development and innovation to provide the highest-quality product and features at a low cost.
COVID-19 Impact
Various businesses have been considerably affected by the global outbreak of the COVID-19 pandemic. One of the significant challenges for the worldwide economy in 2020 was facilitating business continuity in social distancing guidelines, lockdowns norms, work-from-home culture, and other operational challenges. The lack of digital strategies, infrastructure, or tools worsens the challenges for various companies that were needed to abruptly shift operations online or allow workers to work from their homes.
On the other hand, the situation resulted in a considerable surge in awareness regarding the urgent requirement for digital transformation across a majority of the industries and created some lucrative opportunities for the global market. Companies are getting more aware of the advantages of digital transformation, particularly in the work-from-home culture that needs a business to allow the employees to quickly learn, collaborate and perform organisational functions across remote locations.
Component Outlook
Based on Component, the market is segmented into Solution and Services. Solution segment is further bifurcated into Analytics, Cloud Computing, Mobility & Social Media and Others. In 2020, analytics acquired the biggest revenue share due to the massive demand for actionable insights from vast volumes of business data produced by companies. In addition, wide-scale deployment of smart devices & applications in processes caused a substantial surge in data produced across various industries and sectors.
Deployment Type Outlook
Based on Deployment Type, the market is segmented into On-premise and Hosted. The hosted segment is expected to exhibit the fastest growth rate throughout the forecast period. Massive developments in information sharing technologies and the growing utilisation of mobile phones are responsible for the growth of this segment. Hosted deployment provides superior flexibility, higher cost-effectiveness and allows wide-scale customisation of products and services. Solutions are provided through models like Platforms as a Service (PaaS), Software as a Service (SaaS), and Infrastructure as a Service (IaaS). They can be accessed from anywhere on demand by end-users.
Enterprise Size Outlook
Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprises. The large enterprise segment acquired the highest revenue share in 2020. Large enterprises install digital transformation solutions because of the advantages like easy system integration & implementation, cost efficiencies, data privacy, and flexibility. Large enterprises companies can speed up the digital transformation and implement specific digital strategies across processes efficiently due to the strong economic position. Additionally, large enterprises do not confront with challenges like restricted budget allocation. These aspects are expected to fuel the growth of the segment throughout the forecast period.
End-User Outlook
Based on End User, the market is segmented into BFSI, Government & Defense, IT & Telecom, Healthcare, Manufacturing, Consumer Goods & Retail and Others. The retail segment observes a rising adoption of new and unique technologies, like big data analytics, cloud computing, DevOps, social networks, and digital stores. Some of the catalysts for the increased demand for digital transformation in the retail sector are the increasing requirement for customer-centricity and the emerging expectations of the customer. In addition to it, retailers are utilising digital e-commerce and web applications to gain new customers and retain the current ones across all channels.
Regional Outlook
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East & Africa. North America emerged as the dominating region of the global digital transformation market in 2020 by obtaining the maximum revenue share of the market. The region’s growth is credited to the massive penetration of internet services and broad-scale utilisation of various online payment methods in the retail sector. In addition, the existence of leading market players involved in digital transformation solutions in North America will boost the regional market’s growth during the forecast period.
The major strategies followed by the market participants are Partnerships. Based on the analysis presented in the Cardinal matrix, Microsoft Corporation is the major forerunner in the Digital Transformation Market. On the other hand, companies such as Cognizant Technology Solutions Corporation, Accenture PLC, SAP SE, and HCL Technologies Limited are key innovators in the market.
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The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include IBM Corporation, Accenture PLC, Hewlett Packard Enterprise Company, HCL Technologies Ltd. (HCL Enterprises), Equinix, Inc., Adobe, Inc., Cognizant Technology Solutions Corporation, Microsoft Corporation, SAP SE, and Oracle Corporation.
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