Digital Transformation Market Expected to Reach $6780 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Digital Transformation Market, by component, deployment mode, enterprise size, technology, industry vertical and region: Global Opportunity Analysis And Industry Forecast, 2023-2032" The digital transformation market was valued at $721.60 billion in 2022, and is estimated to reach $6780 billion by 2032, growing at a CAGR of 25.4% from 2023 to 2032.

Digitalization is the use of digital technologies to change business processes and projects such as skilled employees to use new software platforms designed to help launch products faster. The rollout of 5G networks enhances connectivity, enabling faster data transfer and lower latency. This technology is a game changer for IoT, remote work, AR, and VR. Companies have explored new ways to leverage 5G for improved operations and customer experiences. Moreover, the rapid adoption of advanced technologies, such as AI, IoT, cloud computing, and others, has driven global market growth. Enterprises have shifted from traditional businesses to adopting technologically advanced solutions that aid market growth. The leading digital transformation players have launched AI and IoT-based solutions for digitalization. In addition, with the high rate of adoption of connected devices and sensors and the enabling of M2M communication, there has been a surge in data points generated in the manufacturing industry. These data points can be of various kinds, ranging from a metric describing the time taken for the material to pass through one process cycle to a more advanced one, such as calculating the material stress capability in the automotive industry. Furthermore, with the shifting focus of end-user companies on remote working & digital workplaces, automation, and AI technological proliferation have played a vital role in creating new opportunities for organizations to streamline the process and improve productivity, supporting the digital transformation market forecast. 

Furthermore, major market players have undertaken various strategies to increase the competition and offer enhanced services to their customers. For instance, in February 2023, Cisco launched simplified dashboards to converge OT and IT operations, flexible network intelligence to view and protect all industrial assets, and new cloud management tools for industrial IoT applications. OpenTelemetry is the industry standard and open-source framework that partners, customers, and service providers rely on to collect, generate, process, and export distributed and cloud-native telemetry data. Cisco ThousandEyes is compatible with OpenTelemetry. Moreover, in January 2023, Alibaba Cloud unveiled its first international partner management and innovation center to better facilitate and further enhance customer services and the digitalization journey. The new product innovation center is expected to manage product upgrades as per the current customer demands globally and facilitate future roadmaps for the development of more market specific solutions. Such strategies foster digital transformation market growth.

On the basis of industry vertical, the BFSI segment attained the highest digital transformation market size in 2022. This is due to the shift in attention of financial institutions and banks toward offering enriched consumer experiences to increase their customer base and improve brand identity. 

On the basis of region, North America held the highest digital transformation market share in 2022, owing to the high adoption of different types of online payment modes and rapid adoption of cloud computing technologies.

The COVID-19 pandemic exerted a significant impact on the digital transformation industry, hastening the adoption of digital technologies and reshaping the business landscape. The upsurge in digitalization served as a lifeline for numerous enterprises during the pandemic, enabling them to adapt to lockdown measures through remote work and online operations. Organizations made substantial investments in remote work tools, cloud infrastructure, and collaboration software as a direct consequence of the pandemic. This not only facilitated business continuity during periods of lockdown but also bolstered workforce adaptability, potentially resulting in long-term cost reductions. Moreover, the pandemic gave rise to a surge in online shopping and e-commerce. Enterprises that swiftly adjusted to the digital marketplace witnessed a surge in sales and customer engagement. This trend heightened the demand for digital payment systems and logistics solutions. Additionally, the rapid acceleration of digital transformation initiatives generated a need for expert guidance. Numerous organizations sought the assistance of digital transformation consultants to effectively formulate and implement strategies. Therefore, the COVID-19 pandemic had a positive impact on the digital transformation market size.

Key Findings of the study

• By component, the solutions segment led the Digital Transformation Market analysis in terms of revenue in 2022.
• By technology, the Big Data and Business Analytics segment accounted for the highest Digital Transformation Market share in 2022.
• By region, North America generated the highest revenue in 2022.

The report analyzes the profiles of key players operating in the Digital Transformation industry such Accenture Plc, Adobe Systems Inc., Cognizant Technology Solutions Corporation, Google Inc, HCL Technologies Limited, Hewlett Packard Enterprise Development LP, IBM Corporation, Microsoft Corporation, Oracle Corporation and SAP SE. These players have adopted various strategies to increase their market penetration and strengthen their position in the threat intelligence market.