Digital Transformation Market Size, Share, By Solution (Analytics, Cloud Computing, Mobility Solutions, AI/AR/VR, Robotic Process Automation, and Others), By Service Type (Professional Services and Integration), By Deployment Type (Hosted and On-premise), By Enterprise (Large Enterprise and Small & Medium Enterprise), By End-user (BFSI, Government, Healthcare, IT & Telecom, Manufacturing, Retail, Supply Chain & Logistics, Media & Entertainment, Education Sector, and Others), and By Region - Trends, Analysis and Forecast till 2034

• In 2023, digital transformation market was estimated to be worth USD 695.64 Billion.
• By 2034, the target market is expected to grow to USD 5189.5 Billion.
• Target market is expanding at a CAGR of 24.7%

Market Overview:

Rising adoption of smartphones applications and increasing penetration of Internet of Things (IoT) are key factors driving growth of the digital transformation market. Growing smart city projects, increasing adoption of cloud platforms and use of real time application globally are other factors projected to boost growth of the market over the forecast period. However, high cost associated, and data privacy and security threats are key factors hampering growth of the market. Additionally, lack of skilled workforce and lack of awareness about benefits of digital transformation, are other factors accounted to restrain growth of the market over the forecast period. Nevertheless, increasing adoption of brings your own device (BYOD), internet enabled devices, and mobile payment systems such as mobikwik, paytm, BHIM, etc. are creating major trend for the growth of the market.

Key Takeaways:

• North America held the largest share of the market in 2024.
• North America is projected to be the fastest-growing market in the coming years.
• By enterprise, the large enterprise accounted for the largest share of the digital transformation market.
• By deployment type, the hosted segment dominated the market globally.
• By service type, the professional services accounted for the largest share of the digital transformation market.
• By Solution, the cloud computing segment dominated the market globally.
• By End-user, the BFSI accounted for the largest share of the digital transformation market.

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Key Drivers of Target Market:

Digital Transformation - Lead of Sustainability

• Digital transformation encompasses production and application of modern technology with sustainability. It emphasize the proactive development and use of digital tools to achieve environmental targets.
• For Instance, In Jul 2024, according to the Economic and Social Commission for Asia Pacific, digital advancement decreases disasters risk, increases efficiency of agricultural and biodiversity ecosystem.

Restrains:

Technical skills gap

• Digital transformation need constant change for the concern of up gradation. Organization requires well-informed and skilled people for operation of digital devices. However, organizations are experiencing skill gaps throughout the employees as they are troubling to achieving skillful individuals.
• For Instance, In Nov 2021, according to the Information Technology & Innovation Foundation, one-third ratio of working Americans has limited digital skills, many U.S. organizations are lacking digital skills. From the past study, according to the World Skills UK, the total number of younger age individuals picking IT topic at GCSE has decreased by 40% from 2015.
• Counterbalance Statements: One of the major solutions to this problem are acquire skills, training and development, continuous learning, data science, strategic planning, skills development programs, and among others.

Opportunities:

Advancement in Technologies

• Advance technologies in digital transformation helps to reshape industries, smooth-running of operations in organizations, access the important data, provide innovative products as well as services. It consists of cloud computing, artificial intelligence (AI), internet of things (IoT), big data and analytics, blockchain, 5G technology, robotic process automation (RPA) and among others. Advancement of technologies also allows organizations for the purpose of collaborations.

For instance, In Jul 2024, according to The Economics Time, Altair and Automotive Research Association of India (ARAI) work together to promote technology and digital transformation in the field of automotive and heavy engineering.

The market is segmented based on Solution, Service Type, Deployment Type, Enterprise, End User, and Region.

Solution Insights:

The digital transformation market by solution is segmented into Analytics, Cloud Computing, Mobility Solutions, AI/AR/VR, Robotic Process Automation, and Others. Cloud Computing segment is expected to dominate the target market growth because of growing adoption of cloud computing in digital transformation for increasing collaboration as well as increasing use of computing in digital transformation.

• For Instance, in October 2024, India is among the fastest growing markets for Google in the cloud services segment. Google Cloud India is seeing an increased adoption. Cloud has moved from being one of the technologies to be used into the Centre stage now.

Service Type Insights:

The digital transformation market by service type is segmented into Professional Services and Integration. Professional Services is expected to dominate the target market growth due to rising adoption of digital transformation.

• For Instance, in April 2024, Cognizant and Microsoft Corp. announced an expanded partnership with the goal of making Microsoft’s generative AI and Copilots available to millions of users, to transform enterprise business operations, enhance employee experiences and accelerate cross-industry innovation.

Deployment Type Insights:

• The digital transformation market by deployment type is segmented into Hosted and On-premise. Hosted deployment accounted for the largest share of the market due to increasing adoption, helping in improving access to data, etc.

Enterprises Insights:

On the basis of Enterprises Digital Transformation Market is segmented into Large Enterprise and Small & Medium Enterprise. Large Enterprises dominate the target market growth due to growing adoption of digital transformation.

• For Instance, in September 2024, Life Insurance Corporation of India (LIC) has committed that Rs 600 crore for its digital transformation journey. The insurance giant is also aiming to become completely “paperless” in two years.

End User Insights:

The digital transformation market by end user is segmented into BFSI, Government, Healthcare, IT & Telecom, Manufacturing, Retail, Supply Chain & Logistics, Media & Entertainment, Education Sector, and Others. BFSI segment is expected to dominate the target market growth due to improve customer services, increasing integration of digital technologies such as AI & ML.

• For Instance, in August 2024, Generative AI is not just a buzzword, it is transforming businesses, presenting them with an opportunity for exponential growth. The BFSI sector has been keen on creating personalized customer experiences by collating multiple data points to understand the customers’ needs.

Regional Insights

• North America: North America accounts for largest market share in terms of revenue and is a dominant player in the digital transformation market. This dominance can be attributed to changing preference toward online payment system and increasing penetration of internet in countries in the region. 
• Asia Pacific: This region is projected to register highest growth rate over the forecast period, owing to rising adoption of digital transformation from small & medium sized companies, and increasing awareness about benefits of cloud in emerging economies in the region.

Digital Transformation Market Report Scope:

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels, analyzing industry trends and opportunities across sub-segments from 2024 to 2034. It segments the market by Solution, Service Type, Deployment Type, Enterprise, End User and Region.

Segmentation:

By Solution:

• Analytics
• Cloud Computing
• Mobility Solutions
• AI/AR/VR
• Robotic Process Automation
• Others

By Service Type:

• Professional Services
• Integration

By Deployment Type:

• Hosted
• On-premise

By Enterprise Type:

• Large Enterprise
• Small and Medium Enterprise

By End-User:

• BFSI
• Government
•  Health care
•  IT and Telecom
• Manufacturing and Retail
• Supply Chain and Logistics
• Media and Entertainment
• Education Sector
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating in the Digital Transformation Market include Accenture, Capgemini, Google LLC, SAP SE, Clarion Technologies Inc., Microsoft Corporation, Hewlett Packard Enterprise (HPE), IBM Corporation, Adobe Inc., CISCO Systems, Cognizant, Dell Technologies Inc., Oracle Corporation, Boston Consulting Group (BCG), Deloitte’s, Intellectsoft LLC, Genpact.

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• In Sep 2024, according to the Hospital Services Consultancy Corporation (HSCC) (India) Limited, it has appeared as a leader in exploiting advance technologies such as BEXEL Manager Revit Software with Autodesk, Electronic Medical Records (EMR), Picture Archiving and Communication System (PACS), Queue Management Systems (QMS), etc. for management of projects, enhance productivity of operations, deliver good services in health care.
• In Sep 2024, according to the Zawya news, government of Oman and Sabre Corporation collaborate to enhance the travel sector with the help of digital transformation.

Analyst View:

The industry for digital transformation market is placed for substantial growth due Rising adoption of smartphones applications and increasing penetration of Internet of Things (IoT). New innovations and development, advance technologies as well as many collaborations and partnerships helps to boost the growth of the market in upcoming years.

• Accenture
• Capgemini
• Google LLC
• SAP SE
• Clarion Technologies Inc.
• Microsoft Corporation
• Hewlett Packard Enterprise (HPE)
• IBM Corporation
• Adobe Inc.
• CISCO Systems
• Cognizant
• Dell Technologies Inc.
• Oracle Corporation
• Boston Consulting Group (BCG)
• Deloitte’s
• Intellectsoft LLC
• Genpact.

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