Digital transformation entails integrating technology into several business processes, most notably altering how you operate and provide customer value. Additionally, it's a culture shift that necessitates constant experimentation with the status quo and comfort with failure on the part of organizations. There has been a growth in the demand for digital and automated technology across the manufacturing sector. To improve the productivity of their products, manufacturers are gradually implementing the newest technologies to digitalize and automate their processes. The global digital transformation market is growingsignificantly due to the rising demand for cutting-edge technologies like the internet of things, big data analytics, artificial intelligence, and cloud computing across numerous business enterprises.
The coronavirus outbreak has had a favorable impact on the market for digital transformation. Due to the lockdown situation, most firms experienced significant losses and were compelled to invest in the automation of their business processes. Thus, the COVID-19 pandemic has had a sizable and favorable impact on the expansion of the global market for digital transformation. Due to the internet's fast use, wireless connection, and cloud computing, numerous industries are expected to alter. Due to the increasing importance of smart devices and the internet during pandemics, the BFSI, pharmacies, healthcare, retail, and education are some of the industries that are anticipated to undergo a significant change.
Business Operations That Are Conducted Digitally Are Driving Demand For Digital Transformation
Modern technology has inspired creative thinking and transformation among corporations, boosting profitability. Examples include social media, big data analytics, the Internet of Things, cloud computing, and the Internet of Things. The integration of digital technologies into corporate operations is referred to as "digital transformation." It aims to alter how resources and technology are employed to serve customers better. IoT, cloud migrations, and other initiatives have helped organizations speed up their digital transformation worldwide. With the advent of digital technology, efficient, modern processes have quickly displaced older ones. Due to the rising usage of modern technologies, customers routinely evaluate firms based solely on their online customer experience. Consequently, the global market for digital transformation is rising.
Digital Technologies' Concerns About Data Security and Privacy Limit Market Expansion
When adopting digital technology, security issues for company data are a top priority. The rapid adoption of cloud, AI, IoT, and blockchain technologies necessitates improved privacy and protection to reduce cyberattacks and data breaches. Cyberattacks and data breaches on cloud services increased in 2019 and accounted for 20% of reported incidents, according to the Trustwave Global Security Report in 2020. The escalating worries about data breaches, data security, and cyberattacks on cutting-edge technologies hamper the growth of the global market.
Based on components, the digital transformation market is segmented into solutions and services. The solutions category dominated the market in 2021. Digital transformation solutions are employed in various sectors to modernize the procedure and meet the escalating demand. Digital material is largely dependent on the user experience. Therefore, enhancing customer experience and using it as a competitive advantage is one of the key objectives of digital transformation.
By technologies, the market is segmented into cloud computing, big data & analytics, mobility & social media management, cyber security, AI, and IoT. The IoT category dominated the market in 2021. The expansion of the cloud-based digital transformation market is anticipated to be driven by rising IoT device usage and an increase in data volume generation. Massive volumes of data are produced by IoT devices, necessitating greater storage capacity.,
By Deployment Type
By deployment type, the market is segmented into cloud and on-premises. The on-premises category dominated the market in 2021. Due to its security and customization capabilities, businesses initially chose the on-premises deployment of digital solutions all over the world. Besides, during the forecast period, the cloud segment is anticipated to develop at the greatest CAGR. The market is growing due to the increasing cloud infrastructure investments and the quick migration of company workloads from on-premises to the cloud.
By Organization Size
By organization size, the market is segmented into large enterprises and SMEs. The large enterprise category dominated the market in 2021. This is primarily due to increased digitalization and large-scale businesses' adoption of cutting-edge technologies like cloud computing, AI, and IoT. The European Communication Organization reports that 43% of businesses have digitized their operations and adopted cloud computing technologies. Large corporations can make investments in cutting-edge technology.
By Business Function
By business function, the market is segmented into finance, information technology, human resources, and marketing & sales. The information technology category dominated the market in 2021 because of rising technical breakthroughs and government digitalization projects.
By vertical, the market is segmented into BFSI, retail & e-commerce, IT/ITES, healthcare, life sciences & pharmaceuticals, government & defense, manufacturing, energy & utilities, and telecommunications. The BFSI category dominated the market in 2021 because BFSI has adopted smart gadgets more frequently. For instance, in January 2022, Bank of America introduced CashPro Forecasting software, based on AI and Machine Learning (ML) technology, to precisely forecast its clients' future cash positions. The AI-based solution created in partnership with fintech company Cashpro Online focuses on AI and ML technology.
North America is projected to hold the largest share of the digital transformation market over the forecast period because more people are using the internet, and more distinct online payment methods are being widely used. The government is also attempting to speed up the digital transformation process in North America through several efforts, such as rigorous adherence to regulatory standards for data protection. Many businesses rely on digital transformation to reach the general public and spur growth. Most of the organisations in this region have the extremely dynamic and adaptable IT support needed for digital transformation.
On the other hand, the Asia Pacific digital transformation market is anticipated to grow significantly over the forecast period due to the SMEs' rapid growth and the expanding service industry. Some factors persuading businesses to change their IT infrastructure to ensure future development include the growing awareness of the benefits of moving to the cloud and the rapid adoption of innovative technologies. Organizations are embracing digital transformation solutions because they enable employees to make informed decisions while enhancing the customer experience and streamlining business processes.
LIST OF KEY COMPANIES PROFILED:
- SAP SE
- International Business Machines Corporation
- Oracle Corporation
- Google Inc.
- Dell EMC
- Hewlett Packard Enterprise Co.
- CA Technologies
- Microsoft Corporation
- Adobe Systems Incorporated
- Accenture PLC
- Capgemini Group
- Apple Inc.
- Kellton Tech Solutions Ltd.
KEY INDUSTRY DEVELOPMENTS:
- July 2021: Microsoft announced a five-year partnership with Telstra, the biggest business in Australia, to support the country's digital transformation. This collaboration also helps Telstar reach its goal of running 9% of its services on cloud infrastructure by 2025. Because of its multi-cloud strategy, Telstra prefers Microsoft Azure as a cloud partner.
- March 2021: The U.K. government decided to launch the Government Digital Service (DSG) program, which provides a straightforward digital identification solution and aids in "creating a single sign-on" that is functional for all users.
|Unit||Revenue (USD Million) and Volume (Kilo Tons)|
|Segmentation||By Component, By Technologies, By Deployment Type, By Organization Size, By Business Function, By Vertical and By Geography|
|By Deployment Typ||
|By Organization Size||
|By Business Function||