Digital transformation has been impacting the world and people in every walk of life. New digital technologies are being introduced at a remarkable rate and have changed the way we live and function every day. They are increasingly transforming the business models, value chains, and ecosystem of organizations as well as changing the way they interact with customer via online platforms, social media and mobile devices. This ensures enhanced customer experience at all levels. With digital transformation increasingly becoming mainstream in verticals such as BFSI, manufacturing, and retail sectors, the global market is expected to witness a huge growth in the years to come.
Market overview
The global Digital Transformation Market that is estimated to be valued at USD 205.99 Billion in 2017 is predicted to reach a value of USD 493.39 Billion by 2022, growing at a CAGR of 19.1% between 2017 and 2022.
On the basis of component, the service segment is projected to witness the highest growth over the forecast period, owing to the rising need for professional services and system integration.
Among end-users, the SMBs segment is expected to grow at a higher rate in comparison to the enterprises segment, mainly due to the adoption of SaaS-based digital transformation solutions in SMBs since they are cost-effective and require basic IT infrastructure.
Based on verticals, the education segment is projected to grow at the highest CAGR in the coming years, owing to the increased demand for platform independent or cross-platform applications.
Geographical growth scenario of the market
Among regions, the market for digital transformation in North America is expected to be the leading market in 2017. The growth of this market can be contributed to the early adoption of cloud technologies with advanced infrastructure capabilities that has boosted the adoption of digital transformation solutions and services. Moreover, the companies in this region offer agility and flexible IT support, which is essential for digital transformation. However, the market in Asia-Pacific is expected to register the highest growth over the forecast period. This growth is mainly due to the emerging economies and increased government initiatives pertaining to the adoption of digital transformation solutions and services in this region. Asia-Pacific market for digital transformation is a lucrative market for the IT industry, owing to the presence of various emerging economies such as China, India, Japan, Singapore, and Australia. Furthermore, digital transformation solutions and services are being widely used by companies in order to improve and streamline their business processes and for effective business decision-making.
Drivers and restraints for the market
The growth of the worldwide market for digital transformation is being primarily driven by the following factors:
- Constant innovation in businesses
- Changing preferences of consumers
- Growing penetration of IoT
- Increased adoption of cloud platform
- Rapid increase in the adoption of mobile devices and apps
In addition, increasing popularity of artificial intelligence and rising focus on collaboration among departments is expected to further create ample growth opportunities for the market.
On the flip side, issues related to security and privacy of confidential data is the major factor that may hamper the growth of this market. Moreover, lack of professional skills and resources is the key challenge that the companies involved in this market will have to overcome in order to witness sustained growth.
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Major companies and strategies adopted for sustenance
Cognizant (US), SAP (Germany), Dell EMC (US), Microsoft (US), Adobe Systems (US), Accenture (Ireland), Capgemini (France), IBM (US), Oracle (US), Google (US), HPE (US), and CA Technologies (US) are the key players operating in the global market for digital transformation. Partnerships, collaborations, contracts, mergers & acquisitions, new product launches, and business expansions are the main strategies being implemented by these companies in order to strengthen their market share as well as expand their footprints in the global market.
