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

Digital Workplace Market Size, Share & Trends Analysis Report By Function, By Component (Solution, Services), By Enterprise Size, By End-use (BFSI, IT & Telecommunications), By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-4-68038-470-3
  • Number of Pages: 120
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2020
  • Industry: Technology

Report Overview

The global digital workplace market size was valued at USD 27.33 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 22.3% from 2022 to 2030. The current growth can be attributed to the increased digitalization, increasing demand for desktop-as-a-service, and growing demand for employees for greater flexibility in terms of work-life balance. With the outbreak of the COVID-19 pandemic, businesses have shifted to remote working and transformed their technologies to create a digital workplace to ensure business continuity.

 U.S. digital workplace market size, by component, 2020 - 2030 (USD Billion)

The pandemic has necessitated the widespread use of video and web conferencing, which has led to the development of new methods of communication and facilitating team bonding and collaboration. Furthermore, due to the ease with which pandemics can spread, several organizations have made long-term investments in workplace transformation for the hybrid work model, necessitating the use of cloud-based solutions to enable remote working with secure access.

The digital workplace provides several benefits with the increasing digital technology of smart assets to help employees work efficiently without compromising the ongoing operations. For instance, in August 2021, HCL Technologies, a provider of IT services and consulting, signed a contract with Munich Re, a German-based insurance company, to provide a next-generation digital workplace for Munich Re's 16,000 employees across 40 countries.

Through a global and local strategy, HCL would support Munich Re’s global workforce in several languages, including Spanish, German, and Mandarin. Further, to improve efficiency and employee user experience, HCL would also implement a personalized service desk solution, as well as leverage the power of automation and self-service. These technological advancements have created new opportunities for key companies to expand their workforce management portfolio.

The increasing adoption of advanced technologies, such as Bring Your Own Device (BYOD) and enterprise mobility by organizations contribute to market growth. It increases flexibility and mobility while decreasing time spent on hardware and software licensing and device management for business-owned devices. It alters the nature of workplaces and processes, aided by organizational restructuring, and reduces the operational expenditure of businesses.

Furthermore, with the help of Artificial Intelligence (AI), the Internet of Things (IoT), and Virtual Reality (VR), workplaces are expected to implement more cloud-based and flexibility-enhancing accessibility solutions. These advantages and advancements will drive the growth of the industry during the forecast period.

With the recent focus on digital workplaces and remote working, AI and automation technological proliferation is playing a vital role in automating manual processes and creating new opportunities for organizations in improving productivity and streamlining the process. For instance, in May 2022, Wipro, an Information Technology (IT), consulting, and business services company, announced a partnership with Scania, a transport solutions provider, to provide support, increased automation, and enhanced customer experience for Scania employees through Wipro’s Live Workspace.

This partnership would help Scania to drive towards sustainable transport solutions and digital workplace experience while leveraging the unique capabilities of Wipro’s ecosystem. As a result, there are numerous opportunities for service providers to innovate their offerings by leveraging cutting-edge technologies, which is propelling the industry growth.

The advancement in mobile technologies, changing workforce demographics, and the rising trend of connected workplaces are the driving forces of the digital workplace transformation services industry. Several future workspaces are increasingly adopting cloud services such as Infrastructure as a Service (IaaS), Backend as a Service (BaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) to support their business needs and get the work done smoothly.

Furthermore, using cloud services, organizations can provide instant access to business-critical data and enterprise applications on a variety of devices, such as tablets, smartphones, and laptops, while maintaining security restraints. These factors are expected to provide growth opportunities for the key players operating in the global digital workplace market over the forecast period.

Component Insights

The solution segment held a market share of 67.6% in 2021. The segment growth can be attributed to the adoption of workplace solutions, such as social and collaborative tools, cloud storage tools, and content management systems among end-users to enhance resource usage and productivity. For instance, Trianz PULSE, a next-generation digital workplace solution, is designed for clients, vendors, and partners to collaborate and communicate through a single centralized environment and simplify remote workforce management.

It enables a workplace social network, fosters collaborations and team building across the organization, and provides access to social media for posting corporate messages. Furthermore, it enhances productivity and efficiency with self-service capabilities for the IT departments in the organization. These benefits provided by digital workplace solutions will supplement the growth of the segment during the forecast period.

The services segment is expected to grow at a CAGR of 23.5% during the forecast period. It includes consulting services, training support and maintenance, and integration and implementation services. These services help organizations to align their digital workplaces efficiently and effectively.

Moreover, they deliver cost-effective support for technical queries and prevent downtime caused by implementing digital workplace solutions. Further, it helps organizations maintain a competitive edge in the market by providing several benefits, such as stable operating environments and reducing governance and compliance risks. These factors will further boost the adoption of digital workplaces during the forecast period.

Enterprise Size Insights

The large enterprise segment accounted for the largest revenue share of 61.5% in 2021. Several large enterprises are embracing cloud technology and innovative technologies, that are easy to consume and powered by AI and other automation technologies and software. For instance, Tata Consultancy Services Limited (TCS) Cognix, is a digital workspace solution, which is designed, configured, and developed to meet the demands of large organizations and bring complete automation.

The solution offers real-time dashboards with intelligent reporting and equips users with future technologies such as Augmented Reality (AR), Virtual Reality (VR), and cognitive automation. The implementation of these solutions will further drive the adoption of digital workplace solutions in large enterprises.

The Small & Medium Enterprises (SMEs) segment is expected to grow at a CAGR of 24.3% over the forecast period. SMEs are swiftly deploying digital workplace services despite their limited organizational infrastructure. It offers several advantages to SMEs, such as increased workforce productivity and business efficiency, mobilized desk-based operations, a shorter time to market, lower costs, and a better customer experience.

Furthermore, SMEs are increasingly embracing cloud enterprise size due to lower costs, no need for manpower for hardware maintenance, and scalability, which results in lower operating and capital expenditures. These factors are propelling the growth of the digital workplace industry in SMEs during the forecast period.

End-use Insights

The IT & telecom segment accounted for a revenue share of 22.8% in 2021. The growing trends of remote working, increasing adoption of Software as a Service (SaaS) service, and BYOD in countries, such as the U.S., Canada, India, China, and Australia have led to an increase in the adoption of digital workplaces solutions in IT & telecom industry. Several IT and telecom companies. As economies around the world become more digital, the pandemic has increased the need for workforce flexibility and resilience. Organizations are aggressively investing in digital solutions, to run their businesses and establish resilience to unprecedented lockdowns.

For instance, Infosys, an information technology company that provides business consulting and outsourcing services launched four digital platforms for their internal workplace, which include Launchpad (for employee onboarding), InfyMe (for employee services and experience platform), LEX (for digital learning), and Meridian (for collaboration and virtual events). This enabled Infosys to quickly adapt remote working and hybrid work models during the pandemic. These developments will further boost the adoption of digital workplace solutions in the IT & telecom industry during the forecast period.

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

The healthcare & pharmaceuticals segment is expected to grow at a CAGR of 24.3% during the forecast period. Several healthcare organizations are embracing the modern digital workplace solutions and their services, which include benefits, such as centralized information access, paper reduction, and substantial savings. By adopting a digital workplace, healthcare enterprises enhance the flow of communication, collaboration, and information across the entire organization anywhere and anytime.

For instance, in October 2019, Atos, an IT service and consulting company, signed a contract with Bayer, a German pharmaceutical and life science company, to implement digital workplace solutions and services for Bayer globally. With Atos’ digital workplace solutions, Bayer employees would leverage simplified and omnichannel services through modern device management, high levels of automation, and interactive technology. These adoptions in the healthcare industry will boost the demand for digital workplace solutions during the forecast period.

Regional Insights

North America dominated the market in 2021 and accounted for a revenue share of 34.2%. The growth of the regional industry for digital workplace can be attributed to the increasing adoption of emerging technologies such as AI, BYOD, and enterprise mobility management solutions, among others. Several regional workplace transformation service providers are rapidly incorporating cloud technologies and Artificial Intelligence (AI) into their service offerings.

For instance, in May 2020, IBM launched IBM Talent & Transformation, a business solution that uses AI to help human resources to widen their skills gap. The solution enables business professionals in several areas, such as HR, legal, finance, and marketing to adopt digital technology. Furthermore, due to the region's high manufacturing, retail, and automotive activity, there is a high demand for software and robotics solutions. This ultimately drives the development of the regional market.

Digital Workplace Market Trends by Region

Asia Pacific is expected to grow at a significant CAGR of 23.6% over the forecast period due to the rapid adoption of digitization by various industry sectors and the growing adoption of cloud platforms among enterprises. Further, market players in the region are adopting several strategies, such as product development, collaborations, and strategic partnerships, among others to sustain a strong position in the market.

For instance, in June 2020, Tata Consultancy Services (TCS) Limited launched Digital Acceleration Center (DAC) with the support of the Singapore Economic Development Board, to assist Singapore businesses in the COVID-19 recovery. Moreover, TCS will provide opportunities for university graduates of Singapore through Workforce Singapore's SGUnited Traineeships Programme, which include digital workplace, Internet of things (IoT), and AR, among others. These initiatives in technologies have provided new opportunities for regional market players to expand their digital workplace portfolio.

Key Companies & Market Share Insights

The dominant players operating in the market include Accenture; Capgemini; IBM; Tata Consultancy Services Limited; Infosys; and Trianz. The key players are observed to invest resources in R&D activities to support growth and enhance their internal business operations. Companies can be seen engaging in mergers & acquisitions and partnerships to further upgrade their products and gain a competitive advantage. They are effectively working on new product development, and enhancement of existing products to acquire new customers and capture more market shares.

For instance, in December 2021, Trianz, a digital transformation technology and service company announced a partnership with Workgrid Software, an intelligent digital workspace solutions provider, to deliver a modern workplace with a digital assistant that collaborates with enterprise applications and delivers personalized, contextual information, and content to workforces. With the help of this partnership, Trianz would be able to deliver a modern workplace powered by predictive analytics, intelligent automation, and enterprise social platforms, to enable collaborations, productivity, and career orientations. Some prominent players in the global digital workplace market include:

  • IBM

  • Accenture plc

  • Atos SE

  • Trianz

  • Capgemini

  • HCL Technologies Limited

  • Infosys Limited

  • Tata Consultancy Services Limited

  • Tech Mahindra Limited

  • Mphasis

Digital Workplace Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 33.12 billion

Revenue forecast in 2030

USD 166.27 billion

Growth rate

CAGR of 22.3% from 2022 to 2030

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million and CAGR from 2022 to 2030

Report coverage

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

Segments Covered

Component, enterprise size, end-use, region

Regional scope

North America; Europe; Asia Pacific; South America; Middle East & Africa

Country scope

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

Key companies profiled

IBM; Accenture plc; Atos SE; Trianz; Capgemini; HCL Technologies Limited; Infosys Limited; Tata Consultancy Services Limited; Tech Mahindra Limited; Mphasis

Customization scope

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

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Global Digital Workplace Market Segmentation

This report forecasts revenue growth at 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 digital workplace market based on component, enterprise size, end-use, and region:

Global Digital Workplace Market Segmentation

  • Component Outlook (Revenue, USD Million, 2017 - 2030)

    • Solutions

    • Services

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

    • Small and Medium Enterprises

    • Large Enterprises

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

    • BFSI

    • IT & Telecommunication

    • Retail & Consumer Goods

    • Healthcare & Pharmaceuticals

    • Manufacturing

    • Government

    • Others (Media & Entertainment, Transportation & Logistics, and Energies & Utilities, among others)

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

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • South America

      • Brazil

    • Middle East & Africa

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