Digital Transformation Market Forecast, Trends, Scope by 2031
The Digital Transformation market size is projected to reach US$ 4507.48 billion by 2031 from US$ 888.88 billion in 2023. The market is expected to register a CAGR of 22.5% in 2023–2031. Enhanced data collection and data-driven customer insights are likely to remain key Digital Transformation market trends.
Digital Transformation Market Analysis
In the continuously evolving global enterprise operations, digital transformation has become imperative for businesses to stay relevant and efficient in the market. All organizations, be they small or large, are increasingly moving towards streamlining their operation by migrating to the cloud. Delivering customer value requires integrating digital technologies in every business area. This is driving the market growth.
Digital Transformation Market Overview
As per the projections published by the World Economic Forum, US$ 100 trillion will be infused by digital transformation into the world economy by 2025. Digital strategy has been adopted by organizations across the globe to increase success rates.
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Digital Transformation Market: Strategic Insights
Market Size Value in US$ 725.62 billion in 2022 Market Size Value by US$ 1,650 billion by 2028 Growth rate CAGR of 22.5% from 2022 to 2028 Forecast Period 2022-2028 Base Year 2022
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We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Digital Transformation Market: Strategic Insights
Market Size Value in | US$ 725.62 billion in 2022 |
Market Size Value by | US$ 1,650 billion by 2028 |
Growth rate | CAGR of 22.5% from 2022 to 2028 |
Forecast Period | 2022-2028 |
Base Year | 2022 |
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Speak to AnalystDigital Transformation Market Drivers and Opportunities
Increasing Enterprise Migration to Cloud to Favor Market
Cloud migration strategy by enterprises can be understood as the movement from on-premise infrastructure to a virtual service offering on-demand scalability, computing, storage, and network services, among others. In this digitizing economy, enterprises realize the need for speed and cost saving, disaster recovery, and constantly updating new tech. According to a 2022 Google Cloud Brand Pulse Survey, investments in cloud-based services and tech are the aim of around 41.4% of the global tech and business leaders in order to sustain in the highly competitive market. This is driving the growth of the digital transformation market.
Enhanced Customer Experience - An Opportunity in the Digital Transformation Market
The rising wave of digital transformation ought to enhance customer experience by making it more seamless and intuitive. This can be achieved by shortening the response time of outreach to customers. Customer expect high standards in their online presence. Brands are competing in the enhancing CX by offering affordable rates, and quick delivery. This has been possible due to rising digital transformation.
Digital Transformation Market Report Segmentation Analysis
Key segments that contributed to the derivation of the Digital Transformation Market analysis are components, deployment type, and application.
- Based on components, the digital transformation market is divided into solution and services.
- Based on the deployment type, the digital transformation market is divided into cloud and on-premise. The cloud segment held the largest share of the market in 2023.
- Based on the application, the digital transformation market is divided into BFSI, healthcare, education, retail, IT & telecom, logistics & transportation, manufacturing, and others.
Digital Transformation Market Share Analysis by Geography
The geographic scope of the Digital Transformation Market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.
North America has dominated the Digital Transformation market. The region’s dominance can be attributed to the presence of top information technology providers in the world. The US has around 5,381 data centers providing connectivity to over 19,000 service providers.
Digital Transformation Market Report Scope
Digital Transformation Market News and Recent Developments
The Digital Transformation Market is evaluated by gathering qualitative and quantitative data post-post-primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for Digital Transformation Market and strategies:
- Salam, which was previously known as Integrated Telecom Company, announced the selection of Oracle to drive 5G innovation across the Middle East. The company is considered one of the most innovative telecom brands showing fast growth. The company will utilize Oracle Communications’ monetization and unified operations solutions to help quickly deliver differentiated services to its consumer and enterprise customers. (Source: Oracle Corporation, Press Release, 2023)
Digital Transformation Market Report Coverage and Deliverables
The “Digital Transformation Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Components ; Deployment Type ; and End-User
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
In terms of revenue, the cloud segment held the major market share in 2023.
The key players holding majority shares in the global Digital Transformation market are Adobe Systems, Inc., IBM Corporation, Microsoft Corporation, and Oracle Corporation.
Enhanced data collection and data-driven customer insights to bring new Digital Transformation market trends in the coming years.
Increasing enterprise migration to the cloud and increasing use of AI and ML technologies are the major factors that propel the global Digital Transformation market growth.
The global Digital Transformation market was estimated to be US$ 888.88 billion in 2023 and is expected to grow at a CAGR of 22.5% during the forecast period 2024 - 2031.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.