Digital Transformation Market Report

Digital Transformation Market Analysis By Type (Solution, Service), By Deployment (Hosted, On-premise), By Enterprise Size (Large Enterprise, Small & Medium Enterprise), By End-use, By Region, And Segment Forecasts, 2014 - 2025

Published: May 2017  |  110 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-851-0

Industry Insights

The global digital transformation market size was valued at USD 177.27 billion in 2016 and is expected to gain traction over the forecast period. The growing demand for the adoption of the Internet of Things (IoT) across industries is promoting the introduction of connected and data-rich solutions. These solutions are capable of embedding intelligence into business operations to facilitate better and more effective customer engagements. Moreover, growing usage of smartphones, mobile devices, and applications is promoting digitization.

Digital transformation supports organizations in mitigating risks and handling disruption such as marketplace fluctuation, corporate restructuring, and geopolitical environment that are unanticipated, and can lead to unpredictable results. Furthermore, shifting from traditional to new digitalized business models facilitates the introduction of more technologically advanced products and services.

U.S. digital transformation market, by solution, 2014 - 2025 (USD Billion)

U.S. digital transformation market

Digital transformation holds the potential to streamline and integrate all business operations for increasing the business performance efficiency. It helps organizations in streamlining their operations to save time, efforts, and money by replacing traditional processes with automation, thus lowering the rate of errors by users.

Digital transformation supports organizations in improving their brand’s reputation, customer experience, and customer retention ratios through the implementation of software. These software’s help organizations in educating and training their internal teams about various aspects of their organizations. Moreover, digitally transformed organizations are able to adapt to the evolving technological landscape and are able to tackle sudden shifts in the industry.

Type Insights

The solution segment dominated the type segment in 2016 and is expected to reach USD 798.44 billion by 2025 over the next eight years. This can be attributed to the rapidly evolving technological landscape that requires organizations to keep updating their systems with the latest technology. Thus, allowing the organizations to have an edge over its competitors.

However, the service segment is anticipated to grow at the highest CAGR of 19.5% over the next eight years. The adoption of digital transformation solutions entails the need for services such as training and support, thus, driving the growth of the service segment over the next eight years.

The analytics segment occupied a significant share of the global market in 2016, owing to the increasing demand to synthesize large volumes of business data in order to derive insights along with the growing number of smart devices and applications being used. These factors are collectively promoting the adoption of analytics solutions and services across organizations belonging to different sectors.

However, the social media segment is anticipated to emerge as the fastest growing solution segment at a CAGR of over 20.6% over the next eight years, owing to the increasing penetration of internet across the world, especially in emerging nations. Furthermore, organizations are heavily relying on gathering information through social media platforms as social media offers an opportunity to organizations to gauge customer behavior and their interpretation of the information about the products or services.

The professional services segment is expected to grow at the highest CAGR of 19.9% over the next eight years. Increasing digitalization is propelling the demand for executive education programs for preparing the existing workforce successfully adapt to the evolving technological landscape.

The introduction of new technologies and media, followed by changing needs of the customers is leading to alteration in business operations. Thus, increasing the need for organizations to opt for professional services to seek their help in identifying and addressing the inefficiencies through training, certifications, and consulting services. Moreover, it supports the IT department in identifying the part of the business that can be digitally transformed.

Enterprise Size Insights

Small & Medium Enterprise segment (SME) is expected to grow at the highest CAGR of 20.1% from 2017 to 2025. The phenomenal growth can be attributed to factors such as the reduced cost of devices and increased focus on cloud computing, thus making it much more convenient for SMEs to streamline their businesses.

The increasing awareness about the benefits of digitalization has led companies to invest significantly in order to expand and sustain their existing positions in a highly competitive market. Furthermore, rapid advancements in the cloud technology and the introduction of cutting-edge technologies such as artificial intelligence, Internet of Things (IoT), and advanced data analytics, among others have made it possible for SMEs to adopt them.

Deployment Insights

Hosted deployment is expected to remain the most preferred method of deployment of solutions and services. This can be attributed to the fact that this method offers increased flexibility and enables large-scale customization of products and services for organizations.

Cloud-based strategies help in improving cost structures and setting up a control center for coordinating and arranging various components of the supply chain. A control tower system captures transportation data and processes it for providing improved visibility and facilitating better decision-making, efficiency, and services.

End-use Insights

The healthcare segment is expected to witness significant growth and is estimated to grow at the highest CAGR of 19.5% over the next eight years. Increasing demand for electronic data across operation channels and patient outreach is anticipated to accelerate the industry growth.

The healthcare sector is expected to foresee significant growth in the coming years and is likely to experience more disruption due to the adoption of new business models by healthcare providers. These models are vulnerable to increased competition levels, stringent customer demands, and augmented pressure for cost cutting.

The rapidly increasing volume of customers has led to the necessity of scalable business models to facilitate efficient handling of patients. These newly designed models are expected to help in mitigating risks associated with costs and facilitate the implementation of new business strategies. Furthermore, they help enhance patient experience as they enable better decision making, allowing for the optimal utilization of resources and time.

Global digital transformation market, by end-use, 2016 (%)

Global digital transformation market

Regional Insights

North America dominated the global market and is expected to grow at a CAGR of 17.3% over the forecast period. This can be attributed to the increasing penetration of internet and the accelerated use of different type of online payment modes, especially in the retail sector.

However, Asia Pacific is presumed to emerge as the fastest growing region at a CAGR of 20.3% over the next eight years, owing to the rapidly increasing number of SMEs) and the expanding service sector. The growing awareness about the benefits of switching to the cloud, along with swift technological advancements, are some of the factors compelling SMBs to transform their business to ensure future growth.

Competitive Insights

Prominent players dominating the market include SAP SE, IBM Corporation, Oracle Corporation, Google Inc., Dell EMC, Hewlett Packard Enterprise Co., CA Technologies, Microsoft Corporation, Adobe Systems Incorporated, Accenture PLC, Capgemini Group, Apple Inc., and Kellton Tech Solutions Ltd., among others.

Industry players are observed making heavy investments in research & development activities with the objective of increasing their market share and ensuring the organic growth of their companies. Furthermore, these players are actively engaging in new product development in order to improve and expand their existing products and services portfolios, thus offering these companies an opportunity to acquire new customers and validate the technology.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

representation

Revenue in USD Billion & CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, and MEA

Country scope

U.S., Canada, UK, Germany, China, India, Japan, and Brazil

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global digital transformation market on the basis of type, deployment, enterprise size, end-use, and region:

  • Type Scope (Revenue, USD Billion; 2014 - 2025)

    • Solution

      • Analytics

      • Cloud Computing

      • Mobility

      • Social Media

      • Others

    • Service

      • Professional Services

      • Implementation & Integration

  • Deployment Outlook (Revenue, USD Billion; 2014 - 2025)

    • Hosted

    • On-premise

  • Enterprise Size Outlook (Revenue, USD Billion; 2014 - 2025)

    • Large Enterprise

    • Small and Medium Enterprise

  • End-use Outlook (Revenue, USD Billion; 2014 - 2025)

    • BFSI

    • Government

    • Healthcare

    • IT & Telecom

    • Manufacturing

    • Retail

    • Others

  • Regional Outlook (Revenue, USD Billion; 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • UK

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • Middle East & Africa (MEA)

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