GVR Report cover Digital Transformation Market Size, Share & Trends Report

Digital Transformation Market Size, Share & Trends Analysis Report By Solution (Analytics, Cloud Computing, Social Media, Mobility), By Service, By Deployment, By Enterprise, By End Use, By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-1-68038-851-0
  • Number of Pages: 150
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2020
  • Industry: Technology

Report Overview

The global digital transformation market size was evaluated at USD 608.72 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 23.1% from 2022 to 2030. The COVID-19 pandemic posed a significant test for the entire world to endure the business congruity in between all the social distancing, lockdown, work from home, and other challenges. While few organizations were ready to face the challenges others were not due to a lack of digital strategy other important tools or infrastructure required for smooth functioning. Despite all the objections COVID-19 has delivered to personal, professional, and community life, it also gave new opportunities to businesses. Innovation, when utilized appropriately, upgrades proficiency and usefulness, the COVID-19 scenario offers the right opportunity for organizations to deal with their digital channels.

U.S. digital transformation market size, by solution, 2020 - 2030 (USD Billion)

Digital transformation helps organizations to cope with various risks associated and handling disruption such as rebuilding corporate, marketplace fluctuation, and geopolitical conditions that are unforeseen and can prompt erratic outcomes. Moreover, moving from conventional to new digitalized setup supports the introduction of many new technically advanced products and services. Digital transformation can transform, integrate and simplify daily business operations by enhancing performance efficiently. It helps associations in organizing their operations to save time and effort and efficiently make use of resources. Digital transformation supplants traditional business processes with automation, and hence reduces the chance of errors by users.

Digital transformation through the implementation of software lets organizations focuses on further developing the brand reputation by enhancing customer experience and attaining higher customer retention ratios. Digital transformation helps organizations in adjusting to the progressing technological scenario and can handle abrupt changes in the business. All the more significantly, a significant piece of the market growth will come from organizations putting resources into analytics, mobility, cloud services, and big data technologies as a component of their development of Digital Experience Platforms (DXP).

In these recent years, the world witnessed numerous developments that took place in the field of technology, for instance, predictive analysis, blockchain, quantum computing, Artificial Intelligence (AI), and Machine Learning (ML), among others. Organizations are producing a tremendous amount of data for which they require technological support such as machine learning algorithms and powerful analysis tools to develop insights. This is one of the key factors promoting the adoption of technologies, and additionally, it makes the workflow more systematic for daily operations.

Significant difficulties that organizations face during the execution of digital transformation include the absence of systematic planning and budget allocation. To embrace the digital transformation journey, a company will require huge capital investment for the acquisition of such technological advancements and a suitably skilled team for the smooth execution process. Subsequently, the whole process demands a huge capital investment, which might prompt lower benefits at first, but over the long run, this huge investment could be one of the key reasons for a successful business. The absence of proper budget allocation hampers organizational decision-making power and makes the transformation initiative uneasy. To conquer this, organizations must come up with a strong strategy for the long term and have a sound capital arrangement.

Solution Insights

The analytics segment accounted for the largest market share of over 30% in 2021, attributable to the high demand to integrate enormous volumes of business information to generate powerful insights. The analytics segment helps industries to reduce their equipment downtimes, increase operational efficiency, and improve yield. Businesses depend upon analytics due to its accurate prediction capabilities which leads to improved business performance. With the help of analytics, organizations can better understand consumers purchasing patterns, and hence forecast can be more précised.

The cloud computing segment is expected to show considerable growth over the forecast period. The cloud segment includes public, private, and hybrid cloud platforms which offer easy deployment and scalability on demand. This segment shows promising growth due to lower implementation costs which is why not only large enterprises but startups and Small & Medium Enterprises (SMEs) can also utilize these platforms. Additionally, it is popularly used to create and modify business processes and customer experience to meet the changing market dynamics.

Service Insights

The professional service segment accounted for a revenue share of over 70% in 2021. Professional service is a mix of consulting and managed services that support businesses of all sizes across varied industries. Businesses undergoing digitalization need professional services to tackle issues such as vendor selection or cultural transformation. This segment is expected to grow as professional service providers help in utilizing and deploying the right resources at the right time.

On the other hand, the implementation and integration service segment is also expected to grow at a considerable rate as organizations are anticipated to reach out to implementation service companies for seamlessly deploying digital solutions. Since integration and implementation of digital transformation is a tedious job it is expected that companies will need proper assistance while deploying digital transformation within their existing framework so it will drive the growth of this segment.

Deployment Insights

The on-premises segment accounted for a revenue share of over 50% in 2021. Many organizations have selected on-premise deployment as it offers plausible choices for the extreme customization of the product. The on-premise deployment offers more information security and assists organizations to comply with different regulations and guidelines. Large organizations have intensely funded the on-premise deployment as it is a safer option to keep classified information confidential. On-premise deployment helps establish a customized network of digital transformation that best suits the interest of the organization.

The hosted segment is expected to expand at the highest CAGR of 26.6% owing to the increasing use of mobile devices and advancements in information sharing technologies. This kind of deployment technique offers better flexibility and empowers organizations to extensively personalize their products and services. Cloud-based methodologies help in working on cost structures and setting up a control community for organizing and orchestrating different modules of the supply chain.

Enterprise Size Insights

The large enterprise segment holds the largest market share of over 55% in 2021. These enterprises are embracing the digital transformation journey as digital transformation offers cost-effectiveness and smooth execution of the business process. Large enterprises must have a successful solution because they need the simplicity of framework coordination, better adaptability, and data protection. Due to better financial capability, large enterprises can implement advanced techniques across organizations and speed up change across various areas. Moreover, large enterprises play a significant role in advancing innovation-driven thoughts and supporting digital awareness.

The Small and Medium Enterprise (SME) segment is expected to register the highest CAGR of 24.6% over the forecast period. The development of this segment can be credited to variables, such as the decreased expense of owning gadgets and expanded spotlight on cloud computing, hence making it easier for SMEs to simplify their business activities. The high awareness rate among organizations about the advantages of digitalization has driven companies to invest heavily to grow and sustain their current situations in an extremely competitive market. Besides, quick progressions in cloud innovation and the development of advanced technologies such as machine learning, predictive analysis, AI, the IoT, and others have made it feasible for SMEs to embrace them.

End-use Insights

The BFSI segment accounted for the largest market share of over 25% in 2021, this growth can be attributed to the shifting attention of banks and other financial institutions toward offering enhanced experience since products and services within the industry are becoming commoditized. The increased focus of banking companies to provide seamless assistance and technical support to develop a customer-centric approach is essentially driving the market. Additionally, COVID-19 had changed the way banks and financial institutions interact with stakeholders. The growing demand for remote functioning capabilities has increased leading to more adoption of digital transformation across the BFSI segment.

Global digital transformation market share, by end use, 2021 (%)

Based on the adoption rate of new emerging technologies, retail is one of the emerging verticals that is implementing various technologies, such as cloud computing, big data analytics, DevOps, social networks, digital stores, and others. The factors driving the growth of this segment are the urge to satisfy customer expectations and the rising purchasing power of consumers, which thus is prompting the new client acquisitions and aiding in the maintenance of existing clients. At present, retailers are utilizing e-commerce, online, and other applications to draw in and hold their clients digitally. Digital transformation helps retailers maximize convenience, save their time and continuously stay connected with their customers by focusing on each element such as inventory management, customer services, pricing, merchandising, and supply chain processes.

Regional Insights

North America held the largest revenue share of over 30% in 2021 owing to the increased usage of the internet and the high adoption of different types of online payment modes. Additionally, various initiatives are attempted by the government bodies to speed up the digital transformation journey in North America, for instance, strict adherence to regulatory norms to protect data. Many organizations are relying on digital transformation to reach the masses; thus, driving growth. Digital transformation requires extremely dynamic and adaptable IT support, which is available in most organizations of this region. North America has a prominent dominance in advanced programming and software solutions, attributable to high retail, manufacturing, and automotive operations in Canada and U.S.

The Asia Pacific region is supposed to arise as the fastest developing region over the next eight years, due to the rapid increase in the number of SMEs and the expanding service sector. The developing awareness about the advantages of switching to cloud, alongside a quick shift to innovative technologies, are some of the factors convincing businesses to change their IT infrastructure to guarantee future development. Digital transformation solutions are embraced by organizations to improve customer experience and make business processes smoother as it empowers the employee to make informed decisions. The high rise in cell phone users, developing web-based trade, and expanding utilization of data analytics are the factors liable to fuel the development of the market in the region.

Key Companies & Market Share Insights

The key players operating in the market include Apple Inc.; Microsoft Corporation; Adobe System Incorporated; Accenture; Dell EMC; CA Technologies; and International Business Machines Corporation. Heavy investments in research and development activities can be witnessed across the industry to ensure the growth of the company as well as to increase its market share. Plus, the players are actively focusing on new product development to enhance and extend their current products and services, consequently offering organizations a potential chance to secure new clients and approve the new technological changes. For instance, in March 2021 the U.K. government decided to set out an initiative known as Government Digital Service (DSG) which offers a simple digital identity solution and helps to “create a single sign-on” that works for everyone. Some of the prominent players operating in the global digital transformation market are:

  • Accenture plc

  • Apple Inc.

  • Adobe Systems Incorporated

  • CA Technologies

  • Dell EMC

  • Hewlett Packard Enterprise Co.

  • International Business Machines Corporation

  • Microsoft Corporation

  • Kellton Tech Solutions Ltd.

  • Google Inc.

Digital Transformation Market Report Scope

Report Attribute


Market size value in 2022

USD 723.77 billion

Revenue forecast in 2030

USD 3,810.05 billion

Growth Rate

CAGR of 23.1% from 2022 to 2030

Base year for estimation


Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD billion and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company market share, competitive landscape, growth factors, and trends

Segments covered

Solution, service, deployment, enterprise size, end use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; Germany; U.K.; China; India; Japan; Brazil

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.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global digital transformation market report based on solution, service, deployment, enterprise size, end use, and region:

  • Solution Outlook (Revenue, USD Billion, 2017 - 2030)

    • Analytics

    • Cloud Computing

    • Mobility

    • Social Media

    • Others

  • Service Outlook (Revenue, USD Billion, 2017 - 2030)

    • Professional Services

    • Implementation & Integration

  • Deployment Outlook (Revenue, USD Billion, 2017 - 2030)

    • Hosted

    • On-premise

  • Enterprise Size Outlook (Revenue, USD Billion, 2017 - 2030)

    • Large Enterprise

    • Small & Medium Enterprise

  • End-use Outlook (Revenue, USD Billion, 2017 - 2030)

    • BFSI

    • Government

    • Healthcare

    • IT & Telecom

    • Manufacturing

    • Retail

    • Others

  • Regional Outlook (Revenue, USD Billion, 2017 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • MEA

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