Digital Workplace Market Size, Share & Trends Report

Digital Workplace Market Size, Share & Trends Analysis Report By Component (Solutions, Services), By Organization (Small & Medium Enterprises, Large Enterprises), By End Use, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: May, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-470-3
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 120

Report Overview

The global digital workplace market size was valued at USD 21.2 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 11.3% from 2020 to 2027. The transformation of workplace, increased digitalization with an aim to transform the technology, employees, and business processes in such a way that it enhances and improves the operational efficiency and contributes towards meeting the organizational goals is driving the market. The changing working culture and growing demand for remote working capabilities from employees to achieve work-life balance are the prominent factors driving the market. The organizations are gradually allowing the employee to Bring Your Own Device (BYOD) to the workplace, which has necessitated the workplace transformation.

U.S. digital workplace market size

Digital workplace helps employees work efficiently without compromising the ongoing operations. The digital workplace ecosystem includes laptops and computers, smartphones, mobile devices, and collaboration applications, virtual assistant technology, and immersive workspaces. There are numerous software, solutions, and tools available, which make the workplace easy, convenient, and flexible to work for the employees. Digital workplace helps in providing an employee-friendly environment with an excellent work-life balance. It brings value-added disruptiveness in the organization, which cannot be catered through the traditional models of workplace services.

The emerging technologies are swiftly unified in the market; hence, the time-to-user becomes critical for companies. For IT and telecommunication organizations, these speedy integrations of technologies cannot be addressed through standard or traditional delivery models. IT and telecommunication companies manage a wider customer base and fulfill varying customer needs. Handling intricate and confidential data within the IT and Telecom industry makes it vital for the organizations to implement digital workplace and augment customer fulfillment, thereby enabling them to uphold their competitive position.

Disruptive digitalization and new technologies are altering the face of workplaces. Digitalization has changed the workplace from business-centric to employee-centric while maintaining a compliant and secure environment. Mobile devices such as smartphones, laptops, and tablets have progressed from being a consumer gadget to a vital part of our workstations. Similarly, technological advancement such as the advent of virtual assistants, improved knowledge discovery and experience analytics allows the automation of tasks, thus improving the employee productivity and user experience.

Component Insights

The component segment can be categorized into solutions and services. Digital workplace services are further classified into professional services and managed services. The services segment held the largest share of the overall market for digital workplace in 2019. Currently, many large enterprises have adopted cloud technology and are adopting innovative technologies that are contextual and insights-enabled, are cloud-ready, easy to consume, and powered by artificial intelligence (AI) and other automation technologies and software. Thus, large enterprises receive professional as well as managed services such as desktop virtualization services, managed mobility services. These services drive the adoption of the digital workplace in large organizations. With the awareness and benefits of the cloud, end-use industries are expected to adopt the digital workplace over the forecast period.

The solutions segment is expected to grow at the highest rate over the forecast period. Digital workplace solutions are further segmented into unified communications and collaborations, unified endpoint management, and enterprise mobility and management. These solutions are earning traction owing to the assistance, such as enhanced use of resources, which further leads to better-quality security and application delivery they offer.

Organization Insights

Based on organization, the market for digital workplace has been segregated into small and medium enterprises, and large enterprises. The large enterprises' segment held the largest share of the overall market in 2019. The majority of large enterprises have adopted the digital workplace to provide improved workplace experience to their employees. The digital transformation solutions are continuously being integrated with big data, social media, and mobile devices, which have resulted in large enterprises increasingly opt for these solutions. Furthermore, the higher spending capacity of the large enterprises, coupled with an increased focus on enhancing the employee experience, has driven the digital workplace market.

The small and medium enterprise segment is projected to witness the highest CAGR over the forecast period owing to the need for collaboration and communication tools, uplifting the productivity and efficiency of the employees. Furthermore, the adoption of a digital workplace among SMEs enables the organization to deliver flexibility to employees and providing an innovative environment for talented employees to flourish.

End-Use Insights

The end-use segment analyzed in the study includes BFSI, IT and telecommunication, retail and consumer goods, healthcare and pharmaceuticals, manufacturing, and others. The IT and telecommunication segment held the largest share of the overall market for digital workplace in 2019. The increasing trends of remote working, rapid adoption of SaaS service, and BYOD in countries such as the U.S., Canada, India, China, and Australia have led to an increase in the adoption over the past few years. The wide global spread of the IT and Telecommunication industry and the need for effective communication across all different functions have driven the market. Furthermore, digital communication tools play an important role in augmenting team collaboration and productivity.

Global digital workplace market share

The healthcare and pharmaceutical industry, followed by banking, finance, insurance sector, is expected to witness the highest CAGR over the forecast period. The adoption of digital workplace solutions and services helps achieve the lower Capex and OPEX, follows the regulatory compliance, and also helps in resource optimization in the industry. The adoption of digital workplace tools has not only transformed the healthcare industry in securing crucial patient information but has also optimized its usability, which has contributed to enhancing the patient care ability.

Regional Insights

North America held the largest share of the overall market in 2019, owing to the highest adoption of the digital workplace in the organizational culture. The region is a hub for the number of small enterprises/startups, medium and large enterprises. The movement towards securing the Internet of Things (IoT) gateway communications, adoption of technologies such as Artificial Intelligence (AI), Augmented Reality (AR), and Robotic Process Automation (RPA) and, the rise of social collaboration outside the enterprise is anticipated to fuel market growth in the region. Companies such as IBM, DXC Technology Company, Citrix, Cognizant, Stefanini, are based in this region.

Asia Pacific is expected to emerge as the fastest-growing market for digital workplace over the forecast period. The growing retail sector in China, India, and Japan, and the presence of the majority of IT companies in the region is anticipated to boost the growth in the market in the region. The growing trends of remote working focus on high-quality services for improved customer experience are expected to boost market growth over the forecast period.

Key Companies & Market Share Insights

Infor, Mphasis, and Microland Limited are some of the niche players operating in the market for digital workplace. These companies are investing significantly in R&D and are involved in the digitalization and up-gradation of workplaces through partnership and new product development. For instance, in May 2018, Citrix launched the Digital Workspace, which is expected to merge the experiences and protect SaaS, mobile, virtual apps, and other contents across all endpoints.

In addition, other companies such as IBM and DXC Technology Company have also increased their efforts in strengthening their market position. In 2017, IBM launched a new solution- IBM Cloud Application Performance Management, which has features such as resource inspecting of IBM API Connect atmospheres and transaction tracking. It also has additional features for thorough diagnostics of Red Hat JBoss runtimes. Some of the prominent players in the digital workplace market include:

  • DXC Technology Company

  • IBM

  • HCL Technologies Limited

  • Atos SE

  • NTT Data Corporation

  • Citrix Systems, Inc.

  • Tata Consultancy Services Limited

  • Wipro Limited

Digital Workplace Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 25.60 billion

Revenue forecast in 2027

USD 54.20 billion

Growth Rate

CAGR of 11.3% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million/billion and CAGR from 2020 to 2027

Report coverage

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

Segments covered

Component, organization, end-use, and region

Regional scope

North America; Europe; Asia Pacific; South America; and MEA

Country scope

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

Key companies profiled

DXC Technology Company; IBM; HCL Technologies Limited; Atos SE; NTT Data Corporation; Citrix Systems, Inc.; Tata Consultancy Services Limited; Wipro Limited

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

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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 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global digital workplace market report on the basis of component, organization, end-use, and region:

  • Component Outlook (Revenue, USD Million, 2016 - 2027)

    • Solutions

    • Services

  • Organization Outlook (Revenue, USD Million, 2016 - 2027)

    • Small and Medium Enterprises

    • Large Enterprises

  • End-use Outlook (Revenue, USD Million, 2016 - 2027)

    • BFSI

    • IT & Telecommunication

    • Retail & Consumer Goods

    • Healthcare & Pharmaceuticals

    • Manufacturing

    • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

      • Mexico

    • Europe

      • The U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • South America

      • Brazil

    • Middle East & Africa

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